Why has NotCo's NotMayo seen a 25% decline in repeat purchases on e-commerce platforms over the past 60 days?

Introduction

NotCo's NotMayo has experienced a 25% decline in repeat purchases on e-commerce platforms over the past 60 days. This significant drop in customer retention requires a thorough investigation to identify the root cause and develop effective solutions. I'll approach this issue systematically, examining both internal and external factors that could be contributing to the decline.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal component. Has NotMayo historically experienced fluctuations in sales during this time of year?

Why it matters: Seasonal patterns could explain the decline and inform our solution approach. Expected answer: No significant seasonal patterns have been observed in the past. Impact on approach: If seasonal, we'd focus on strategies to mitigate seasonal dips; if not, we'd look deeper into product or market changes.

• Considering the e-commerce focus, I'm curious about the overall market trends. Have other plant-based mayo alternatives seen similar declines in the same period?

Why it matters: This helps distinguish between product-specific issues and broader market shifts. Expected answer: Competitors haven't reported similar declines. Impact on approach: If NotMayo-specific, we'd focus on product issues; if market-wide, we'd consider external factors more heavily.

• Thinking about recent changes, have there been any updates to the product formulation, packaging, or pricing in the last 90 days?

Why it matters: Recent changes could directly impact customer satisfaction and repurchase behavior. Expected answer: A minor packaging redesign was implemented 75 days ago. Impact on approach: If changes occurred, we'd investigate their potential impact; if not, we'd look at other factors affecting customer experience.

• Considering the metric specificity, I'm wondering about the overall sales trend. Has there been a corresponding decline in new customer acquisition, or is this isolated to repeat purchases?

Why it matters: This helps us understand if the issue is with customer retention or a broader sales problem. Expected answer: New customer acquisition has remained stable. Impact on approach: If only repeat purchases are affected, we'd focus on post-purchase experience and product quality; if both are declining, we'd consider broader marketing and competitive factors.