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Product Management Root Cause Analysis Question: Investigating sudden transaction volume decrease in a digital goods app
Image of author vinay

Vinay

Updated Nov 19, 2024

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What caused the sudden 50% decrease in transaction volume for digital goods sales through the Warung Pintar app yesterday?

Data Analysis Problem Solving Technical Understanding Fintech E-commerce Digital Payments
Fintech Root Cause Analysis Digital Goods Transaction Volume App Performance

Introduction

The sudden 50% decrease in transaction volume for digital goods sales through the Warung Pintar app yesterday is a critical issue that demands immediate attention. This significant drop in a key performance metric could have far-reaching implications for our business, user satisfaction, and overall product health. To address this problem effectively, 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 this could be a recent change. Has there been any product update or feature release in the past 48 hours?

Why it matters: Recent changes often correlate with sudden metric shifts. Expected answer: Yes, a minor UI update was pushed yesterday morning. Impact on approach: If confirmed, we'd prioritize investigating the update's impact.

  • Considering user segments, I'm curious about the distribution. Is this decrease uniform across all user groups or concentrated in specific segments?

Why it matters: Helps identify if it's a global issue or specific to certain users. Expected answer: The decrease is more pronounced among newer users. Impact on approach: We'd focus on onboarding and new user experience if confirmed.

  • Given the magnitude, I'm wondering about technical issues. Have there been any reported server outages or payment processing problems in the last 24 hours?

Why it matters: Technical issues can cause immediate and significant drops in transactions. Expected answer: No major outages, but there were some intermittent slowdowns. Impact on approach: We'd investigate the impact of these slowdowns on user behavior.

  • Thinking about external factors, has there been any significant change in competitor offerings or marketing campaigns recently?

Why it matters: External market forces can rapidly impact user behavior. Expected answer: A major competitor launched a promotional campaign yesterday. Impact on approach: We'd analyze the campaign's impact and consider our competitive positioning.

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