Why has the click-through rate on Farfetch's product recommendation emails declined by 25% for UK customers in the last two weeks?

Introduction

The recent 25% decline in click-through rates for Farfetch's product recommendation emails to UK customers is a concerning trend that requires immediate attention. This analysis will systematically investigate potential root causes, generate data-driven hypotheses, and propose actionable solutions to address the issue.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal factor at play. Has this decline coincided with any major UK holidays or events?

Why it matters: Seasonal trends can significantly impact e-commerce behavior. Expected answer: No major holidays or events during this period. Impact on approach: If confirmed, we'll focus more on internal factors.

• Considering the specificity of the decline, I'm wondering about recent changes. Have there been any updates to the email recommendation algorithm or template in the past month?

Why it matters: Recent changes often correlate with performance shifts. Expected answer: A minor update to the recommendation algorithm was implemented. Impact on approach: This would shift our focus to technical and product-related hypotheses.

• Given the UK-specific nature, I'm curious about market conditions. Has there been any significant change in the UK fashion retail landscape recently?

Why it matters: Market dynamics can heavily influence consumer behavior. Expected answer: No major changes in the UK fashion retail market. Impact on approach: If confirmed, we'll prioritize internal factors over external market conditions.

• Thinking about user segments, I'm wondering if this decline is uniform across all UK customers or concentrated in specific groups?

Why it matters: Segmented analysis can reveal targeted issues. Expected answer: The decline is more pronounced among newer customers. Impact on approach: This would lead us to investigate onboarding and new user experience more closely.