Why has the conversion rate for Better's pre-approval applications decreased from 8% to 5% since the new website redesign?

Introduction

The recent decrease in Better's pre-approval application conversion rate from 8% to 5% following a website redesign is a critical issue that demands immediate attention. This significant drop could have far-reaching implications for the company's bottom line and customer acquisition strategy. I'll approach this problem systematically, focusing on identifying the root cause, validating hypotheses, and developing both short-term fixes and long-term solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking the redesign might have introduced usability issues. Has there been any significant change in user feedback or support tickets since the redesign?

Why it matters: This could indicate whether the redesign has negatively impacted user experience. Expected answer: An increase in negative feedback or support tickets. Impact on approach: If confirmed, we'd focus on UX improvements.

• Considering potential technical issues, have there been any changes in page load times or error rates since the redesign?

Why it matters: Technical problems could be driving users away before completion. Expected answer: Some increase in load times or error rates. Impact on approach: If true, we'd prioritize technical optimizations.

• Thinking about user segments, has the conversion rate drop been consistent across all user demographics and devices?

Why it matters: This helps identify if the issue is universal or specific to certain groups. Expected answer: Varied impact across segments. Impact on approach: We'd tailor solutions to the most affected segments.

• Regarding the pre-approval process itself, were any changes made to the application requirements or steps during the redesign?

Why it matters: Changes in the process could be deterring users from completing applications. Expected answer: Some modifications to the application process. Impact on approach: We'd review and potentially simplify the application flow.