Why has the customer retention rate for Wefox's home insurance product dropped by 15% this quarter?

Introduction

The 15% drop in customer retention for Wefox's home insurance product this quarter is a critical issue that demands immediate attention. To address this problem, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term and long-term implications.

I'll begin by clarifying the context, then rule out external factors before diving deep into product understanding, metric breakdown, and data analysis. This will lead to hypothesis formation, root cause analysis, and ultimately, a comprehensive resolution plan.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this 15% drop been compared to the same quarter last year?

Why it matters: Seasonal trends could explain fluctuations in retention rates. Expected answer: Yes, it's been compared and the drop is still significant. Impact on approach: If seasonal, we'd focus on year-over-year comparisons rather than quarter-over-quarter.

• Considering the magnitude of the drop, I'm wondering about recent product changes. Have there been any significant updates to the home insurance product in the last 3-6 months?

Why it matters: Product changes often impact user behavior and satisfaction. Expected answer: A new claims process was implemented 4 months ago. Impact on approach: We'd scrutinize the new process and its impact on user experience.

• Given the specificity of the 15% figure, I'm curious about our measurement methods. Has there been any change in how we calculate or track retention rates?

Why it matters: Ensures we're comparing apples to apples and not facing a data anomaly. Expected answer: No changes in measurement methods. Impact on approach: We'd focus on actual retention issues rather than measurement discrepancies.

• Thinking about market dynamics, I'm considering competitive pressures. Have any major competitors launched new products or aggressive marketing campaigns recently?

Why it matters: External market forces can significantly impact retention rates. Expected answer: One competitor introduced a lower-priced option last month. Impact on approach: We'd analyze our pricing strategy and value proposition in the market context.