Pavlo’s approach
Clarification questions:
- Were there any recent product updates?
- Were there any marketing activity changes?
- Were there any competitors' significant activities? (e.g. new/updated product launch, intensification of marketing campaigns, even/season specific offerings)
If nothing of the above happened then we should examine if the funnel of prospect users:
- Are the users acquiring channels the same? Was the distribution among them changed?
- Check each stage of new users acquiring funnel - is the churn rate the same of each stage of the funnel as it was before?
- Check segmentation - is that platform specific or user group specific decline?
Assuming there were no changes in the funnel and all the segments are affected evenly. The next step would be checking for technical issues - loading delays, crashes. Additionally we should examine each registration step/screen - does decline happen at some specific place?
All this information should help us narrow down the reason of the decline and support the next actions to eliminate the root cause of it.
My Understanding of the Problem
When we are talking about new signups, I am going to mean users who are creating an account on Netflix for the first time. Technically speaking, their email ID does not exist in the Netflix Database at all. Next thing, since Netflix is a global company, I would clarify whether the drop has been observed in a particular country or globally. One more thing to clarify, is whether the sign-ups have declined for any particular tier of customer plans or across all the plans uniformly.
My Assumptions
The drop has happened only in India, specifically for the basic plan
Possible Reasons
Pricing - If the pricing has been changed for this plan, fewer users could find it cost-effective to sign up, especially in a price-sensitive market like India
Competitor Move - India is a highly contested market in terms of OTT. If a competitor has reduced their prices or added a sought after content, then new users could be migrating to that platform.
System Issues - If there is a recent outage on the registration page, or a general service outage that prevented new users from signing up
Solution
After evaluating all of the above reasons, I can form a clear idea of why new user registration may have declined.