Why has the conversion rate for Naked Insurance's car insurance quotes dropped by 15% in the last month?

Introduction

The recent 15% drop in Naked Insurance's car insurance quote conversion rate is a critical issue that demands immediate attention. As we delve into this product execution problem, I'll employ a systematic approach to identify, validate, and address the root cause while considering both short-term fixes and long-term strategic implications.

My analysis will follow a structured framework, beginning with clarifying questions to establish context, followed by a thorough examination of external factors, product understanding, metric breakdown, and data-driven hypothesis formation. We'll then conduct a root cause analysis, propose validation methods, and outline a comprehensive resolution plan.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal factor at play. Has this drop coincided with any particular time of year or event?

Why it matters: Seasonal trends can significantly impact insurance purchasing behavior. Expected answer: No specific seasonal event correlates with the drop. Impact on approach: If seasonal, we'd focus on year-over-year comparisons and cyclical strategies.

• Considering user segments, I'm curious if this drop is uniform across all customer types. Have you noticed any particular demographic or user group more affected than others?

Why it matters: Identifying specific affected segments can narrow down potential causes. Expected answer: The drop appears to be relatively uniform across segments. Impact on approach: If segment-specific, we'd tailor solutions to those particular user groups.

• Thinking about recent changes, has there been any significant update to the quote process or pricing algorithm in the last 1-2 months?

Why it matters: Recent changes often correlate with sudden metric shifts. Expected answer: No major changes have been implemented recently. Impact on approach: If recent changes exist, we'd focus on rollback or optimization strategies.

• Regarding data integrity, I'm wondering if there have been any changes to how conversion rate is calculated or tracked. Can you confirm the consistency of the measurement system?

Why it matters: Ensures we're addressing a real issue, not a measurement anomaly. Expected answer: The measurement system has remained consistent. Impact on approach: If measurement issues are found, we'd prioritize data system fixes.