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Product Management Root Cause Analysis Question: Investigating Tokopedia's mobile app daily active user decline
Image of author vinay

Vinay

Updated Nov 19, 2024

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Why has the number of daily active users for Tokopedia's mobile app decreased by 15% over the past month?

Data Analysis Problem-Solving Strategic Thinking E-commerce Mobile Apps Retail
User Engagement E-Commerce Data Analysis Root Cause Analysis Mobile Apps

Introduction

The recent 15% decrease in daily active users (DAU) for Tokopedia's mobile app over the past month is a significant concern that requires immediate attention and a thorough analysis. As we dive into this issue, we'll follow a structured approach to identify potential root causes, validate our hypotheses, and develop a comprehensive plan to address the problem.

Our analysis will cover various aspects, including technical issues, user behavior changes, product modifications, and external factors. We'll prioritize data-driven decision-making and consider both short-term fixes and long-term strategic implications for Tokopedia's mobile app ecosystem.

Framework overview

This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minutes)

  • Looking at the timing, I'm thinking there might be a seasonal component. Has this 15% decrease been compared to the same period last year?

Why it matters: Seasonal trends can significantly impact user behavior and app usage. Expected answer: Yes, this decrease is unusual compared to previous years. Impact on approach: If seasonal, we'd focus on year-over-year comparisons rather than month-over-month.

  • Considering potential technical issues, have there been any recent app updates or server changes that coincide with the start of this decline?

Why it matters: Technical problems often lead to sudden drops in user engagement. Expected answer: An app update was released three weeks ago. Impact on approach: If confirmed, we'd prioritize investigating the impact of recent changes.

  • Thinking about user segments, is this decrease uniform across all user groups, or are certain segments more affected?

Why it matters: Identifying specific affected segments can narrow down potential causes. Expected answer: The decrease is more pronounced among occasional users. Impact on approach: We'd focus on understanding what's changed for this particular user segment.

  • Considering external factors, have there been any significant changes in the e-commerce landscape or competitor activities in the past month?

Why it matters: External market forces can dramatically impact user behavior. Expected answer: A major competitor launched an aggressive promotional campaign. Impact on approach: We'd need to assess our competitive positioning and value proposition.

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