Introduction
The recent 10% decline in average order value (AOV) for dresses on About You over the past two weeks 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 business.
Framework overview
This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.
Step 1
Clarifying Questions (3 minutes)
Why it matters: Seasonal trends can significantly impact fashion purchasing behavior. Expected answer: No significant seasonal events during this period. Impact on approach: If seasonal, we'd focus on inventory and marketing strategies.
Why it matters: Identifying affected segments helps pinpoint targeted solutions. Expected answer: The decline is more pronounced in the 25-34 age group. Impact on approach: We'd investigate factors specific to this demographic.
Why it matters: Technical changes can inadvertently impact user behavior and conversions. Expected answer: A minor update to the recommendation algorithm was implemented three weeks ago. Impact on approach: We'd scrutinize the algorithm change and its potential effects.
Why it matters: Pricing changes can directly influence AOV. Expected answer: No significant changes to pricing or promotional strategies. Impact on approach: If pricing isn't a factor, we'd focus more on product mix and user behavior.
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