Why has Back Market's customer retention rate for first-time buyers of refurbished tablets decreased from 40% to 32% in the last 6 months?

Introduction

Back Market's customer retention rate for first-time buyers of refurbished tablets has decreased from 40% to 32% in the last 6 months. This significant drop requires a thorough investigation to identify the root cause and develop effective solutions. I'll approach this issue systematically, examining both internal and external factors that could be contributing to the decline in retention.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might have been a product change. Have there been any significant updates to the tablet offerings or the purchasing process in the last 6-8 months?

Why it matters: Product changes can directly impact user experience and retention. Expected answer: Yes, there was a major update to the product catalog. Impact on approach: If yes, we'd focus on analyzing the impact of these changes.

• Considering the specificity of the metric, I'm curious about the data collection. Has there been any change in how we define or measure first-time buyer retention?

Why it matters: Ensures we're comparing apples to apples in our analysis. Expected answer: No changes in measurement methodology. Impact on approach: If there were changes, we'd need to reassess the validity of the comparison.

• Given the focus on tablets, I'm wondering about market trends. Have we seen any significant shifts in the overall refurbished tablet market in the past year?

Why it matters: External market forces could be influencing our retention rates. Expected answer: The market has been relatively stable. Impact on approach: If there are market shifts, we'd need to factor these into our analysis.

• Thinking about user segments, I'm curious if this decline is uniform across all demographics. Do we have data on which user segments are most affected by this retention drop?

Why it matters: Helps identify if the issue is global or specific to certain user groups. Expected answer: The decline is more pronounced in younger age groups. Impact on approach: This would guide us to focus on specific user segments in our analysis.