Vivino CTR Decline | Root Cause Analysis Interview

Table of contents

Why has the click-through rate on wine recommendations in Vivino's daily email newsletter declined by 15% over the past quarter?

Data Analysis Hypothesis Testing Problem-Solving E-commerce Food & Beverage Digital Marketing

User Engagement Data Analysis Root Cause Analysis Wine Industry Email Marketing

Introduction

The decline in click-through rate (CTR) for wine recommendations in Vivino's daily email newsletter by 15% over the past quarter is a significant issue that requires thorough investigation. This analysis will systematically identify, validate, and address the root cause while considering both immediate and long-term implications for Vivino's product strategy.

I'll approach this problem by first clarifying key details, ruling out external factors, and then diving deep into the product, user journey, and metrics. From there, I'll form data-driven hypotheses, conduct root cause analysis, and propose validation methods and solutions.

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 15% decline been consistent across all user segments, or are certain groups more affected?

Why it matters: Understanding the distribution of the decline helps focus our investigation. Expected answer: The decline is more pronounced among casual wine drinkers. Impact on approach: If true, we'd focus on engagement strategies for this segment.

Considering recent product changes, I'm curious if there have been any modifications to the email format or recommendation algorithm in the past quarter?

Why it matters: Recent changes could directly impact user engagement. Expected answer: A new recommendation algorithm was implemented two months ago. Impact on approach: This would shift our focus to algorithm performance and A/B testing.

Thinking about user behavior, has there been any change in the types of wines being recommended or the pricing of featured wines?

Why it matters: Changes in product offerings could affect user interest. Expected answer: No significant changes in wine types or pricing. Impact on approach: We'd need to look deeper into user preferences and engagement patterns.

Considering technical aspects, have there been any issues with email deliverability or changes in email client behavior?

Why it matters: Technical issues could directly impact CTR. Expected answer: No known deliverability issues, but we haven't checked email client changes. Impact on approach: We'd need to investigate email client updates and their potential impact on CTR.

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