Why has LendingTree's personal loan application completion rate dropped by 15% over the past month?

Introduction

LendingTree's personal loan application completion rate has dropped by 15% over the past month, signaling a critical issue in the user journey. This analysis will systematically identify, validate, and address the root cause while considering both immediate and long-term implications for the product and business.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a recent change in the application process. Has there been any update to the loan application flow in the last 1-2 months?

Why it matters: Recent changes could directly impact user behavior and completion rates. Expected answer: Yes, there was a minor UI update. Impact on approach: If confirmed, we'd focus on analyzing the specific changes and their potential effects.

• Considering user segments, I'm curious about the distribution of this drop. Is the 15% decrease uniform across all user segments, or are certain groups more affected?

Why it matters: Identifying specific affected segments could point to targeted issues. Expected answer: The drop is more pronounced in first-time applicants. Impact on approach: We'd investigate factors specifically impacting new users' experience.

• Given the competitive nature of the lending market, I'm wondering about external factors. Have there been any significant changes in competitor offerings or marketing strategies recently?

Why it matters: External market forces could be drawing users away from LendingTree. Expected answer: No major changes noted in competitor strategies. Impact on approach: We'd focus more on internal factors if external influences seem stable.

• Thinking about technical aspects, I'm concerned about potential system issues. Have there been any reported technical problems or downtime in the past month?

Why it matters: Technical issues could directly impact user ability to complete applications. Expected answer: Some intermittent slowdowns were reported but quickly resolved. Impact on approach: We'd investigate the extent and impact of these technical issues on user experience.