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Company focus

Tata 1mg

The 60-day repeat order rate among Tata 1mg's chronic-medicine customers fell 15%. How would you find the cause?

Prepared by NextSprints

13 mins
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Cohort Analysis Hypothesis Testing Retention Diagnostics Health Tech E-Pharmacy Retention E-Pharmacy Root-Cause-Analysis Chronic-Care
Product Management Root Cause Analysis Question: drop in Tata 1mg chronic medicine repeat orders

Introduction

Chronic patients are the backbone of an e-pharmacy. Someone with diabetes, hypertension or a thyroid condition orders the same medicines every month for years, which makes them Tata 1mg's most valuable customers and a key reason its ePharmacy business reached breakeven in FY26. Any drop in their repeat behaviour hits revenue and margin quickly.

The scenario: the 60-day repeat order rate among chronic-medicine customers on Tata 1mg fell 15% over the last two months. How would you find the root cause? I'll clarify, rule out external factors, map the journey, break down the metric, form and test hypotheses, then propose a resolution plan.

Framework overview

Clarify the definition, rule out external factors, map the journey, segment the metric, rank hypotheses, validate with data, then decide and fix.

Step 1

Clarifying Questions (3 minutes)

  • Looking at the definition, I'm thinking "chronic customers" means users with at least two orders containing chronic-category medicines in the last six months, and repeat means another such order within 60 days. Has the definition or category tagging changed?

  • Assumption: No change.
  • Impact: The drop is real.
  • Considering the timing, was the drop sudden or gradual, and is it nationwide?

  • Assumption: Gradual over eight weeks, sharper in metros than in smaller cities.
  • Thinking about recent changes, did we change pricing, discounts, delivery fees, membership benefits or the app?

  • Assumption: Discount on chronic medicines was reduced from 20% to 15% for non-members six weeks ago; a new app home page launched; prescription expiry rules were tightened.
  • Considering competition, any notable moves?

  • Assumption: A quick-commerce player expanded pharmacy delivery in several metros, and a competitor e-pharmacy ran a large discount campaign on chronic medicines.

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Updated Oct 31, 2026