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Product Management Root Cause Analysis Question: Investigating decrease in cryptocurrency trading volume
Image of author vinay

Vinay

Updated Dec 3, 2024

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Why did the average trade volume per user decrease by 15% on TokoCrypto's spot trading platform this month?

Data Analysis Problem-Solving User Experience Design Cryptocurrency FinTech Trading Platforms
Product Metrics Root Cause Analysis User Behavior UI/UX Crypto Trading

Introduction

The 15% decrease in average trade volume per user on TokoCrypto's spot trading platform this month is a concerning trend that requires immediate attention. As we delve into this issue, we'll employ a systematic approach to identify, validate, and address the root cause while considering both short-term and long-term implications for the platform's success.

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 be a seasonal trend. Has this decrease coincided with any particular events or time of year?

Why it matters: Seasonal patterns could explain temporary fluctuations. Expected answer: No significant seasonal correlation. Impact on approach: If seasonal, we'd focus on cyclical strategies; if not, we'd investigate other factors.

  • Considering user segments, I'm wondering if this decrease is uniform across all user types. Have you noticed any particular user segments more affected than others?

Why it matters: Identifies whether the issue is widespread or localized to specific user groups. Expected answer: Decrease more pronounced in casual traders. Impact on approach: Would tailor solutions to specific user segments if disparities exist.

  • Thinking about recent changes, have there been any significant updates to the platform's UI, features, or fee structure in the past month?

Why it matters: Recent changes could directly impact user behavior. Expected answer: Minor UI update implemented two weeks ago. Impact on approach: Would investigate the correlation between the update and trading volume decrease.

  • Considering market conditions, has there been any notable volatility or trends in the crypto market during this period?

Why it matters: External market factors could influence trading behavior. Expected answer: Market has been relatively stable. Impact on approach: If market volatility is low, we'd focus more on internal factors.

  • Regarding system performance, have there been any reported issues with platform stability or transaction processing speeds?

Why it matters: Technical issues could deter users from trading. Expected answer: No significant technical issues reported. Impact on approach: If technical issues exist, we'd prioritize resolving them; if not, we'd explore other factors.

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