Why has customer retention rate for Woowa Brothers's Baemin Riders declined by 20% compared to the previous quarter?

Introduction

The decline in Baemin Riders' customer retention rate by 20% compared to the previous quarter is a critical issue that demands immediate attention. This analysis will systematically identify, validate, and address the root cause while considering both short-term and long-term implications for Woowa Brothers's delivery service.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this decline coincided with any particular season or holiday period?

Why it matters: Seasonal patterns could explain temporary fluctuations in retention. Expected answer: The decline is not aligned with any specific seasonal trend. Impact on approach: If seasonal, we'd focus on cyclical strategies; if not, we'd investigate more systemic issues.

• Considering the metric itself, I'm curious about the definition of "customer retention" in this context. Could you clarify how Baemin Riders defines and measures customer retention?

Why it matters: Ensures we're analyzing the correct metric and not conflating it with other performance indicators. Expected answer: Retention is measured as the percentage of riders who complete at least one delivery per week over a 3-month period. Impact on approach: Different definitions would require adjusting our analysis focus and data requests.

• Given the significant drop, I'm wondering about any recent changes to the platform or policies. Have there been any major updates to the Baemin Riders app or terms of service in the past quarter?

Why it matters: Recent changes could directly impact rider behavior and retention. Expected answer: A new version of the app was released with changes to the rider assignment algorithm. Impact on approach: If changes occurred, we'd scrutinize their impact; if not, we'd look more closely at external factors or gradual trends.

• Considering the competitive landscape, has there been any significant movement from rival food delivery services that might be attracting Baemin Riders?

Why it matters: Competitor actions could be drawing riders away from the platform. Expected answer: A new delivery service launched with aggressive sign-up bonuses for riders. Impact on approach: Strong competitive pressures would shift our focus to market positioning and rider incentives.