Why has the average order value for MobiKwik's instant loan product decreased by 20% compared to last quarter?

Introduction

The 20% decrease in average order value for MobiKwik's instant loan product compared to last quarter is a significant issue that requires thorough investigation. 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)

• Considering the timing, I'm wondering if there have been any recent changes to the loan approval process. Have we modified our risk assessment criteria or loan limits recently?

Why it matters: Changes in approval processes could directly impact average order values. Expected answer: Yes, we tightened our risk assessment criteria last month. Impact on approach: If confirmed, we'd need to analyze the impact of these changes on loan amounts and approval rates.

• Looking at user segments, I'm curious about shifts in our customer base. Has there been any significant change in the demographics of users applying for instant loans?

Why it matters: Different user segments may have varying loan requirements and repayment capacities. Expected answer: We've seen an increase in younger, first-time borrowers. Impact on approach: This would lead us to investigate how different user segments impact average order values.

• Considering market dynamics, have there been any notable changes in competitor offerings or marketing strategies?

Why it matters: Competitive pressures could influence user behavior and loan preferences. Expected answer: A major competitor launched a lower-interest loan product last quarter. Impact on approach: We'd need to assess our product positioning and potentially adjust our offering to remain competitive.

• Regarding system performance, have there been any technical issues or outages that might have affected loan processing or user experience?

Why it matters: Technical problems could lead to incomplete transactions or user drop-offs. Expected answer: No major issues reported, but there were minor slowdowns during peak hours. Impact on approach: We'd need to investigate if these slowdowns correlate with lower order values or abandoned transactions.