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Product Management Root Cause Analysis Question: Investigating doubled return rates for fashion items on an e-commerce platform

Why has the customer return rate for fashion items on Sky.Garden doubled in the past two weeks?

Data Analysis Problem Solving Strategic Thinking E-commerce Fashion Retail Online Marketplaces
E-Commerce Data Analysis Root Cause Analysis Fashion Retail Customer Returns

Introduction

The sudden doubling of customer return rates for fashion items on Sky.Garden over the past two weeks is a critical issue that demands immediate attention. This unexpected surge not only impacts our bottom line but also signals potential underlying problems in our product, processes, or customer experience. I'll approach this analysis systematically, focusing on identifying the root cause, validating our findings, and developing both short-term fixes and long-term strategies to address the issue.

Framework overview

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

Step 1

Clarifying Questions (3 minutes)

  • Looking at the timing, I'm thinking there might have been a recent change in our product or operations. Has there been any significant update to our website, mobile app, or backend systems in the past month?

Why it matters: Recent changes often correlate with sudden metric shifts. Expected answer: Yes, we launched a new size recommendation feature two weeks ago. Impact on approach: If confirmed, we'd focus on the new feature's implementation and user adoption.

  • Considering the specificity to fashion items, I'm curious about the return rate across different product categories. Has this increase been uniform across all fashion items, or are certain categories more affected?

Why it matters: Helps narrow down if it's a global issue or specific to certain products. Expected answer: The increase is most pronounced in women's dresses and shoes. Impact on approach: We'd investigate these specific categories for potential quality or description issues.

  • Given the magnitude of the change, I'm wondering about our customer feedback channels. Have we seen any corresponding increase in customer complaints or negative reviews?

Why it matters: Direct customer feedback can provide qualitative insights into the quantitative data. Expected answer: Yes, there's been a 30% increase in complaints about fit and quality. Impact on approach: We'd analyze these complaints for common themes and potential quick fixes.

  • Considering potential external factors, I'm thinking about recent marketing campaigns. Have we run any promotions or attracted a significantly different customer demographic recently?

Why it matters: Changes in customer base can affect return patterns. Expected answer: We launched a influencer marketing campaign targeting younger customers two weeks ago. Impact on approach: We'd examine if the new customer segment has different expectations or behaviors.

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