Why has the number of new Chegg Study subscribers decreased by 15% this month compared to last month?

Introduction

The recent 15% decrease in new Chegg Study subscribers is a concerning trend that requires immediate attention. As we analyze this product issue, we'll follow a systematic framework to identify, validate, and address the root cause while considering both immediate and long-term implications for Chegg's educational platform.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonality at play. Can you confirm if this 15% decrease is compared to the same month last year or just the previous month?

Why it matters: Seasonal fluctuations in student enrollment could significantly impact our analysis. Expected answer: It's compared to the previous month. Impact on approach: If seasonal, we'd need to adjust our baseline expectations.

• I'm curious about the user segments affected. Has the decrease been uniform across all user types (e.g., high school, undergraduate, graduate students), or is it concentrated in specific segments?

Why it matters: Different segments may have distinct reasons for the decrease, affecting our solution strategy. Expected answer: The decrease is more pronounced among undergraduate students. Impact on approach: We'd focus our investigation on factors specifically affecting undergraduates.

• Considering potential system changes, have there been any recent updates to the subscription process or pricing model in the past month?

Why it matters: Technical issues or pricing changes could directly impact new subscriptions. Expected answer: No significant changes were made recently. Impact on approach: If changes were made, we'd prioritize investigating their impact.

• I'm wondering about external factors. Has there been any notable competitor activity or changes in the educational landscape in the past month?

Why it matters: External market forces could be driving the decrease in new subscribers. Expected answer: A new competitor launched a similar service at a lower price point. Impact on approach: We'd need to assess our competitive positioning and value proposition.