Why has the average order value for makeup products on Sociolla decreased by 20% since the launch of our new mobile app?

Introduction

The recent 20% decrease in average order value (AOV) for makeup products on Sociolla following the launch of our new mobile app is a concerning trend that requires immediate attention. This analysis will systematically investigate potential root causes, generate data-driven hypotheses, and propose actionable solutions to address this issue.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking the app launch might be directly related. Has the decrease in AOV been consistent across all user segments, or are there specific groups more affected?

Why it matters: Identifying affected segments helps focus our investigation. Expected answer: The decrease is more pronounced among mobile app users. Impact on approach: If confirmed, we'd prioritize mobile app-specific factors in our analysis.

• Considering user behavior, I'm curious about the product mix. Has there been a shift in the types of makeup products being purchased since the app launch?

Why it matters: Changes in product mix could explain the AOV decrease. Expected answer: There's been an increase in lower-priced items purchased. Impact on approach: We'd investigate why users are gravitating towards cheaper products on the app.

• Thinking about the app's features, I'm wondering about the prominence of discounts or promotions. Are there any new discount features or promotional strategies implemented with the app launch?

Why it matters: New discount features could directly impact AOV. Expected answer: The app includes a new "daily deals" section. Impact on approach: We'd analyze the impact of this feature on purchasing behavior.

• Considering technical aspects, I'm curious about the app's performance. Have there been any reported issues with app stability or user experience that might affect purchasing behavior?

Why it matters: Technical issues could deter users from completing larger orders. Expected answer: Some users have reported slow load times for product pages. Impact on approach: We'd investigate the correlation between app performance and AOV.