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Product Management Root Cause Analysis Question: Investigating B2B platform retention decline for food distribution company

Why has Twiga Foods' customer retention rate for the B2B platform fallen from 85% to 70% this quarter?

Data Analysis Problem Solving Strategic Thinking Food Distribution B2B Platforms AgriTech
Platform Optimization Root Cause Analysis Food Distribution Customer Churn B2B Retention

Introduction

The recent decline in Twiga Foods' B2B platform customer retention rate from 85% to 70% is a critical issue that demands immediate attention. This significant drop could have far-reaching implications for the company's growth and market position. To address this challenge, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term fixes and long-term strategic implications.

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 seasonal factors at play. Has this drop coincided with any particular agricultural season or market cycle?

Why it matters: Seasonal patterns could explain temporary fluctuations and inform our solution approach. Expected answer: There's some seasonality, but not enough to explain this large of a drop. Impact on approach: If seasonal, we'd focus on cyclical strategies; if not, we'd look deeper into internal factors.

  • Considering the B2B nature of the platform, I'm curious about the customer segmentation. Has the churn been consistent across different types of businesses, or is it concentrated in specific segments?

Why it matters: Identifying affected segments helps pinpoint specific issues and tailor solutions. Expected answer: Small retailers have been churning at a higher rate than larger businesses. Impact on approach: We'd focus on understanding and addressing the unique needs of small retailers.

  • I'm wondering about recent platform changes. Have there been any significant updates to the B2B platform's features, pricing, or user interface in the last quarter?

Why it matters: Recent changes could directly impact user experience and retention. Expected answer: A new ordering system was implemented two months ago. Impact on approach: We'd investigate the new system's impact on user behavior and satisfaction.

  • Thinking about external factors, has there been any notable shift in the competitive landscape or market conditions for B2B food distribution platforms?

Why it matters: External pressures could be driving customers to alternatives. Expected answer: A new competitor entered the market offering lower prices. Impact on approach: We'd need to reassess our value proposition and competitive positioning.

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