Why has Snap Finance's lease-to-own program seen a 15% drop in new customer applications over the past month?

Introduction

Snap Finance's lease-to-own program has experienced a 15% drop in new customer applications over the past month, signaling a significant issue that requires immediate attention. To address this problem, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term and long-term implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this 15% drop been compared to the same period last year?

Why it matters: Seasonal trends could explain the fluctuation and impact our approach. Expected answer: Yes, it's been compared and is still significant. 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 application funnel. Has there been a change in the conversion rate at any stage of the application process?

Why it matters: Pinpointing where in the funnel we're losing customers is crucial for targeted solutions. Expected answer: There's been a noticeable drop in conversions at the credit check stage. Impact on approach: We'd focus on investigating changes in credit policies or user perception of credit requirements.

• Given the potential for external factors, I'm wondering if there have been any recent regulatory changes affecting lease-to-own programs in our key markets?

Why it matters: Regulatory changes could significantly impact customer eligibility or perception. Expected answer: No major regulatory changes have been identified. Impact on approach: We'd shift focus to internal factors or market conditions rather than regulatory compliance.

• Considering potential technical issues, have there been any recent updates to the application system or user interface?

Why it matters: Technical glitches or UX changes could be deterring potential customers. Expected answer: A minor UI update was rolled out two weeks ago. Impact on approach: We'd prioritize investigating the impact of the UI changes on user behavior and application completion rates.