Why has the average spending per user on Uni Cards's SX credit card decreased by 15% this quarter compared to last?

Introduction

The 15% decrease in average spending per user on Uni Cards's SX credit card this quarter is a concerning trend that requires immediate attention. To address this issue, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term and long-term implications for the product and business.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this decrease been observed in previous years during the same quarter?

Why it matters: Helps distinguish between cyclical trends and unique issues. Expected answer: No, this is an unusual decrease for this quarter. Impact on approach: If seasonal, we'd focus on mitigating seasonal effects; if not, we'd investigate other factors.

• Considering user segments, I'm curious about the distribution of the decrease. Is the 15% drop consistent across all user segments, or are certain groups more affected?

Why it matters: Identifies whether this is a universal issue or specific to certain user types. Expected answer: The decrease is more pronounced in the 25-35 age group. Impact on approach: We'd tailor our investigation and solutions to the most affected segments.

• Thinking about recent changes, have there been any significant updates to the SX credit card's features, rewards, or terms in the last quarter?

Why it matters: Helps identify if internal changes are contributing to the decrease. Expected answer: A slight reduction in cashback rewards was implemented. Impact on approach: We'd analyze the impact of this change on user behavior and spending patterns.

• Considering external factors, has there been any notable shift in the competitive landscape or economic conditions that might influence credit card spending?

Why it matters: Helps distinguish between internal issues and market-wide trends. Expected answer: A new competitor launched an aggressive cashback program. Impact on approach: We'd assess our product's positioning and value proposition relative to competitors.