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Product Management Root Cause Analysis Question: Investigating Wix Stores premium plan conversion rate decline
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Vinay

Updated Dec 5, 2024

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Asked at Wix

15 mins

Why has the conversion rate for premium plan upgrades dropped by 15% in the last month for Wix Stores users?

Data Analysis Problem Solving Strategic Thinking E-commerce SaaS Web Development
E-Commerce Conversion Optimization Root Cause Analysis User Behavior Pricing Strategy

Introduction

The recent 15% drop in conversion rate for premium plan upgrades among Wix Stores users is a critical issue that demands immediate attention. This analysis will systematically investigate potential root causes, validate hypotheses, and propose targeted solutions to address the conversion decline. We'll follow a structured approach to identify the underlying factors and develop a comprehensive strategy for recovery.

Framework overview

This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minute)

  • Timing of the drop: Has this decline been gradual over the month, or was there a sudden drop at a specific point?

Why it matters: Helps identify if there was a specific trigger event. Expected answer: Sudden drop two weeks ago. Impact on approach: Focus on recent changes or events.

  • User segments: Is this decline uniform across all user segments, or are certain groups more affected?

Why it matters: Reveals if the issue is widespread or localized. Expected answer: More pronounced in new users. Impact on approach: Investigate onboarding and first-time user experience.

  • Recent changes: Have there been any significant product updates, pricing changes, or marketing campaigns in the last month?

Why it matters: Identifies potential internal causes for the decline. Expected answer: New feature rollout and pricing structure update. Impact on approach: Analyze impact of recent changes on user perception and behavior.

  • Competitive landscape: Have there been any notable moves from competitors recently?

Why it matters: Assesses external factors influencing user decisions. Expected answer: Major competitor launched a promotional campaign. Impact on approach: Evaluate our value proposition and competitive positioning.

  • Metric definition: Has there been any change in how we define or measure the conversion rate for premium plan upgrades?

Why it matters: Ensures we're comparing apples to apples. Expected answer: No changes in metric definition or measurement. Impact on approach: Focus on actual user behavior changes rather than measurement issues.

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