Why has the number of new savings account openings for Lunar dropped by 30% in the past month?

Introduction

The recent 30% drop in new savings account openings at Lunar is a significant concern that requires immediate attention and a thorough analysis. As we delve into this issue, we'll follow a structured approach to identify the root cause, validate our hypotheses, and develop both short-term and long-term solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal component. Has this 30% drop been compared to the same period last year?

Why it matters: Seasonal fluctuations could explain the decrease without indicating a deeper problem. Expected answer: Yes, it's been compared and is still significant. Impact on approach: If seasonal, we'd focus on year-over-year trends rather than month-to-month.

• Considering user segments, I'm curious if this drop is uniform across all demographics. Have we seen any particular user group more affected than others?

Why it matters: Identifying specific affected segments could point to targeted issues or changes in market dynamics. Expected answer: The drop is more pronounced among younger users. Impact on approach: We'd investigate factors specifically affecting younger demographics.

• Thinking about recent changes, have there been any updates to the account opening process or marketing campaigns in the past 1-2 months?

Why it matters: Recent changes could directly impact new account openings. Expected answer: A new onboarding flow was implemented three weeks ago. Impact on approach: We'd scrutinize the new flow for potential friction points.

• Considering competitive landscape, has there been any significant move by competitors recently, like a new high-yield savings product?

Why it matters: Competitive actions could be drawing potential customers away from Lunar. Expected answer: A major competitor launched a 5% APY savings account last month. Impact on approach: We'd need to reassess our product positioning and value proposition.