Why has the conversion rate for Everly Health's testosterone testing service declined from 8% to 5% over the past 6 weeks?

Introduction

The decline in Everly Health's testosterone testing service conversion rate from 8% to 5% over the past 6 weeks is a significant issue that requires immediate attention. This 37.5% drop could have substantial impacts on revenue and customer acquisition. I'll approach this problem systematically, focusing on identifying potential root causes, validating hypotheses, and developing both short-term and long-term solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Have we seen similar conversion rate drops in previous years during this period?

Why it matters: Seasonal patterns could explain the drop and inform our solution approach. Expected answer: No significant seasonal patterns observed in previous years. Impact on approach: If seasonal, we'd focus on adapting our strategy for this period; if not, we'd investigate other factors.

• Considering recent changes, I'm wondering if there have been any updates to the product, marketing, or user experience in the last 2-3 months?

Why it matters: Recent changes could directly impact conversion rates. Expected answer: A new landing page was implemented 8 weeks ago. Impact on approach: If changes occurred, we'd scrutinize their impact; if not, we'd look at external factors or gradual shifts in user behavior.

• Thinking about user segments, has the decline been uniform across all demographics, or are certain groups more affected?

Why it matters: Identifying affected segments helps narrow down potential causes and tailor solutions. Expected answer: The decline is more pronounced among first-time visitors. Impact on approach: If specific segments are affected, we'd focus on those groups; if uniform, we'd look at broader issues.

• Considering the competitive landscape, have there been any significant moves by competitors or changes in the market recently?

Why it matters: External market forces could be driving the conversion decline. Expected answer: A new competitor launched a similar service with aggressive pricing. Impact on approach: If market changes are significant, we'd focus on competitive positioning; if not, we'd prioritize internal factors.