Diagnose a drop in DAU

Question

The activation rate dropped by 15% this week. Walk through your investigation process.

Codemia · Accepted Answer

To effectively diagnose the 15% drop in Daily Active Users (DAU), we must first scope the problem by analyzing the user journey and activation metrics. We should focus on identifying which user segments are most affected by the drop, such as new users versus returning users. Additionally, we should investigate potential changes in the onboarding process, feature updates, or external factors such as market trends that could be contributing to this decline. By breaking down the user activation funnel, we can pinpoint the exact stage where users are disengaging.

The primary users of Citadel’s platform are retail investors and traders looking for advanced analytics and trading tools. Since Citadel operates in a competitive market where user experience and real-time data access are crucial, it's important to understand what matters to these users. Factors such as ease of navigation, speed of execution, and the availability of educational resources are critical. Additionally, we need to consider the impact of recent market volatility, which may influence user behavior and engagement levels.

To address the drop in DAU, I propose enhancing the onboarding experience for new users by implementing a guided tutorial that highlights key features and functionalities of the platform. This can be complemented by personalized notifications for users returning after a period of inactivity, encouraging them to explore new features or educational content. The reasoning behind this solution is that improving the onboarding experience can increase user confidence and engagement, ultimately leading to higher activation rates.

To measure the effectiveness of the proposed solution, we should track the following metrics: 1) **Onboarding Completion Rate**: Percentage of new users who complete the onboarding tutorial. 2) **User Retention Rate**: Percentage of users returning to the platform after their first week. 3) **Engagement Rate**: Average session length and frequency of use by active users post-onboarding. 4) **Feature Adoption Rate**: Percentage of users utilizing newly introduced features post-launch of the guided tutorial. 5) **Net Promoter Score (NPS)**: User satisfaction and likelihood to recommend the platform after experiencing the new onboarding process.

Implementing a guided tutorial may require significant development resources and time, which could delay the rollout of other features. Additionally, while this approach targets new users, it may not address the needs of returning users who are also part of the DAU drop. We will need to balance the investment in the onboarding experience against immediate enhancements for existing users. Moreover, we must ensure that the tutorial does not overwhelm or frustrate users, which could lead to further disengagement if perceived as intrusive.

Diagnose a drop in DAU

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