Why has Orchard (Real Estate Services)'s home buying service seen a 30% drop in customer inquiries over the past month?

Introduction

Orchard's 30% drop in customer inquiries for their home buying service over the past month is a significant issue that requires immediate attention. As we analyze this product challenge, we'll follow a systematic framework to identify, validate, and address the root cause while considering both immediate and long-term implications.

I'll approach this problem by first clarifying the context, then ruling out external factors before diving deep into the product itself. We'll break down the metric, gather relevant data, form hypotheses, and conduct a thorough root cause analysis. Finally, we'll develop a comprehensive plan to validate our findings and implement solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this 30% drop been compared to the same period last year?

Why it matters: Seasonal trends can significantly impact real estate services. Expected answer: Yes, this drop is unusual even accounting for seasonality. Impact on approach: If seasonal, we'd focus on year-over-year comparisons rather than month-over-month.

• Considering the metric specificity, I'm curious about the definition of "customer inquiries." Does this include all forms of contact or just specific channels?

Why it matters: Different channels might be affected differently, pointing to specific issues. Expected answer: It includes all initial customer contacts across channels. Impact on approach: If channel-specific, we'd investigate each channel separately.

• Given the magnitude of the drop, I'm wondering if there have been any recent changes to the product, marketing, or user interface?

Why it matters: Recent changes often correlate with sudden metric shifts. Expected answer: No major changes in the last two months. Impact on approach: If changes occurred, we'd focus on their impact; if not, we'd look at external factors or gradual trends.

• Considering the competitive landscape, has there been any significant move by competitors or changes in the real estate market recently?

Why it matters: External market forces can dramatically affect customer behavior. Expected answer: The market has been stable, but a new competitor launched an aggressive campaign. Impact on approach: If market changes are significant, we'd prioritize competitive analysis and market positioning.