As the Growth Lead for an online fashion retailer in Delhi targeting young professionals, you have recently overseen the launch of a new clothing line.
The launch aimed for ₹20 crores in revenue with a customer satisfaction score above 80%. However, the actual results were only ₹10 crores in revenue with a satisfaction score of 60%.
After conducting an initial Exploratory Data Analysis (EDA) on input metrics, it was observed that while website traffic and impressions met the targets, there was a significant drop in conversion rates and customer feedback highlighted issues with product quality and pricing.
Considering these findings, which of the following steps would you prioritize as the most likely next step or hypothesis to further diagnose the reasons for underperformance?
- Scenario A: Delving deeper into the conversion rate and average order value metrics to understand at which stage potential customers are dropping off and the average spending per purchase.
- Scenario B: Assessing the efficacy of different marketing channels in driving not just traffic but quality leads that convert into sales, focusing on where the highest quality engagements were.
- Scenario C: Implementing a customer feedback loop specifically addressing product quality and pricing, to understand the negative satisfaction scores and how it affected sales.
- Scenario D: Comparing the pricing and product features with direct competitors who launched similar products in the same period to understand market positioning.
Choose the scenario that would provide the most valuable insights into the underperformance of the product launch.