Diagnose a drop in DAU

Question

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

Codemia · Accepted Answer

To address the 15% drop in activation rate this week, we need to first define what 'activation' means for Plaid's users. Activation could refer to the first successful connection to a financial account via Plaid's API. This week’s decline merits an investigation into potential issues within the onboarding flow, user interface, or external factors affecting user behavior. We should scope our investigation into three primary areas: user feedback, technical performance (e.g., API response times), and external market conditions (e.g., financial news or events impacting user engagement).

Plaid primarily serves developers and businesses that integrate financial services into their applications. The typical users include fintech startups, banks, and e-commerce platforms. For these users, a seamless onboarding experience that allows their end customers to quickly and securely connect their bank accounts is critical. During our investigation, we will segment users based on their industry and usage patterns to identify if the drop in activation is concentrated in a specific segment, such as new fintech startups that may lack technical resources compared to larger institutions.

Given the potential causes of the activation drop, I recommend implementing an enhanced onboarding experience that includes a guided setup process with real-time support. This could involve a step-by-step walkthrough of the account connection process, incorporating tooltips, FAQs, and live chat support options. Furthermore, we should introduce a feedback loop where users can report issues during activation. This approach aims to address technical hurdles and provide immediate assistance to users, thereby reducing friction and improving activation rates.

To assess the effectiveness of the proposed solution, I would track the following metrics: 1. **Activation Rate**: Measure the percentage of users completing the onboarding process after implementing changes. 2. **Time to Activate**: Track how long it takes for users to complete the account connection process. 3. **User Feedback Score**: Collect qualitative feedback from users post-activation to gauge satisfaction and identify pain points. 4. **Support Interaction Rate**: Monitor the frequency of users engaging with live support during onboarding. 5. **Churn Rate**: Observe if the drop in activation correlates with a change in user retention over the following weeks.

Implementing an enhanced onboarding experience may require significant engineering resources, which could divert focus from other product development priorities. Additionally, while real-time support can improve user experience, it may also increase operational costs. We must balance the immediate need to rectify the activation drop with long-term resource allocation and strategic development goals. Lastly, ensuring a seamless user experience while integrating support features might introduce complexity, requiring careful design to maintain simplicity and usability.

Diagnose a drop in DAU

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