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Product Management Root Cause Analysis Question: Investigating drop in fresh milk delivery orders
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Nextsprints

Updated Jan 22, 2025

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Why has Country Delight's fresh milk delivery service seen a 15% drop in daily orders over the past month?

Data Analysis Problem-Solving Strategic Thinking Food & Beverage E-commerce Last-mile Delivery
Customer Retention Root Cause Analysis Product Quality Supply Chain Dairy Industry

Introduction

Country Delight's fresh milk delivery service has experienced a 15% drop in daily orders over the past month, signaling a significant challenge for the product team. To address this issue, we'll employ a systematic approach to identify, validate, and resolve the root cause while considering both immediate and long-term implications.

Framework overview

This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minutes)

  • I'm noticing the timing of this drop. Has there been any recent change in pricing or product offering?

Why it matters: Price changes often directly impact order volume. Expected answer: No recent changes in pricing or product offering. Impact on approach: If no changes, we'll focus on other factors affecting customer behavior.

  • Considering the nature of the product, I'm wondering about seasonality. Is this drop aligned with any historical seasonal patterns?

Why it matters: Milk consumption can vary with seasons, affecting order frequency. Expected answer: No significant seasonal pattern observed in previous years. Impact on approach: If not seasonal, we'll investigate other external or internal factors.

  • Given the 15% drop, I'm curious about customer segments. Has this decline been uniform across all customer segments?

Why it matters: Identifying affected segments can pinpoint specific issues. Expected answer: The drop is more pronounced in certain customer segments. Impact on approach: We'll focus on understanding why these segments are more affected.

  • Thinking about the supply chain, have there been any recent issues with milk sourcing or delivery?

Why it matters: Supply chain disruptions can directly impact order fulfillment and customer satisfaction. Expected answer: No major supply chain issues reported. Impact on approach: If supply is stable, we'll look into demand-side factors or product quality issues.

  • Considering potential technical issues, has there been any change in the app or website functionality recently?

Why it matters: Technical glitches can significantly impact order placement and user experience. Expected answer: No major technical changes or reported issues. Impact on approach: If no technical issues, we'll focus on user behavior and external factors.

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