Case Study 2 - Root Cause Analysis - Grocery App Sales Drop by 25%

A grocery e-commerce app in India saw a 25% drop in sales starting last week. A candidate is asked to identify the potential reason.

Approach:

The candidate takes a structured problem-solving approach—asking clarifying questions, distinguishing between external and internal factors, and avoiding premature conclusions.

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External Factors (Ruled Out):

• No new competitors

• No major sales/discounts from others

• No supply chain disruptions (e.g., driver strikes)

• No pattern across geographies or demographics

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Internal Factors (Investigated Deeply):

• Data Collection Tool: Verified and working fine

• Platform Impact: Issue present only on Android app

• Uninstalls: No spike in app uninstalls

• App Update: Recent update only on Android

• Cart Functionality: “Add to Cart” and cart viewing work fine

• Checkout Bugs: Bugs found during payment stage

• Payment Methods: Digital methods fine

• Cash on Delivery (COD): Bugs reported during COD option usage

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Root Cause Identified:

Bugs in the Cash on Delivery (COD) feature in the Android app update led to failed checkouts, resulting in 25% drop in sales.

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Key Takeaways:

• Avoid jumping to conclusions; always dig deeper

• Structure your thinking: External → Internal

• Validate assumptions at every step

• Small product changes (like bugs in COD) can have massive business impact

• Referencing known case studies (like the “$300M button”) can demonstrate product thinking and real-world knowledge

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