Why has TravelPerk's FlexiPerk feature seen a 20% drop in new activations over the past month?

Introduction

TravelPerk's FlexiPerk feature, designed to offer flexibility in business travel bookings, has experienced a concerning 20% drop in new activations over the past month. This decline in a key product metric requires a thorough investigation to identify the root cause and develop effective solutions. I'll approach this analysis systematically, examining both internal and external factors that could be contributing to this issue.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this 20% drop been compared to the same period last year?

Why it matters: Seasonal trends could explain the activation decline. Expected answer: Yes, it's been compared and the drop is still significant. Impact on approach: If seasonal, we'd focus on year-over-year comparisons.

• Considering potential system issues, have there been any recent changes to the activation process or tracking mechanisms?

Why it matters: Technical glitches could be misrepresenting actual user behavior. Expected answer: No major changes reported in the last month. Impact on approach: If changes occurred, we'd prioritize technical investigation.

• Thinking about user segments, has the drop been consistent across all customer types, or is it more pronounced in specific segments?

Why it matters: Helps identify if the issue is global or segment-specific. Expected answer: The drop is more significant among SME customers. Impact on approach: We'd focus our analysis on SME-specific factors if this is the case.

• Considering market dynamics, have there been any notable changes in competitor offerings or pricing in the last month?

Why it matters: External market forces could be influencing customer choices. Expected answer: No major competitor changes noted. Impact on approach: If competitor changes exist, we'd analyze our market positioning.