Why did the number of new credit card applications drop by 30% last week for CRED's rewards program?

Introduction

The sudden 30% drop in new credit card applications for CRED's rewards program last week is a significant issue that requires immediate attention and thorough analysis. As we delve into this problem, we'll systematically examine potential causes, gather relevant data, and develop a strategic plan to address the root cause while considering both short-term fixes and long-term implications for the product.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might have been a recent change in the rewards program. Has there been any modification to the rewards structure or eligibility criteria in the past month?

Why it matters: Changes in program terms could directly impact application rates. Expected answer: Yes, there was a change in the minimum credit score required. Impact on approach: If confirmed, we'd focus on analyzing the impact of this change on different user segments.

• Considering the scale of the drop, I'm wondering about our marketing efforts. Have there been any significant changes in our marketing campaigns or budget allocation recently?

Why it matters: Marketing plays a crucial role in driving new applications. Expected answer: No major changes in marketing strategy or spend. Impact on approach: If marketing remains consistent, we'd shift focus to other internal or external factors.

• Given the competitive nature of the credit card market, I'm curious about our competitors' actions. Have any major competitors launched new products or promotions in the last few weeks?

Why it matters: Competitor actions can significantly influence consumer behavior. Expected answer: A major bank launched a new cashback card with attractive sign-up bonuses. Impact on approach: This would lead us to analyze our competitive positioning and value proposition.

• Considering potential technical issues, I'm wondering about the application process itself. Have there been any reported problems or changes in the online application system recently?

Why it matters: Technical issues could directly impact application completion rates. Expected answer: No major technical issues reported, but a minor UI update was implemented. Impact on approach: We'd investigate if the UI change had any unintended consequences on user behavior.