What is Root Cause Analysis (RCA)?

Root Cause Analysis (RCA) is a systematic process used to identify the fundamental causes of issues or events within a business, aimed at addressing and rectifying them at their source rather than just treating the symptoms.

By understanding the root causes, businesses can make more informed and effective changes, leading to long-lasting improvements.



Examples of RCA in Internet Businesses:

  • → A sudden drop in website traffic: RCA might reveal that a recent website update inadvertently made the site less SEO friendly, leading to a decrease in organic search traffic.

  • → Inconsistent sales patterns: RCA may uncover that changes in market trends or customer preferences are affecting certain product lines, necessitating a shift in marketing or product development strategies.

  • → High customer churn rate: Through RCA, a company might find that customers are leaving due to specific features lacking in a software product or due to poor customer service experiences, pointing to areas needing improvement.



Takeaway:
RCA involves systematic problem-solving and it enables businesses to make better decisions by tackling problems at their root.

Later in this skilleton, we will understand the process to conduct RCA and different statistical techniques used in it.

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