Diagnosing a 33% Conversion Drop at 23andMe: A Product Manager’s Approach

Introduction

As product managers, particularly in the context of FAANG companies, the ability to diagnose and respond to market challenges is key. We often face complex issues such as fluctuating conversion rates, and unpacking these effectively can showcase our strategic and analytical strengths. Today, we explore a case where a leading genomics company, 23andMe, experienced a 33% drop in conversion, and how we would approach this issue as potential product managers in the interview process.

Detailed Guide on Framework Application

Choosing a Framework: The Five Whys Root Cause Analysis

The Five Whys is a methodical problem-solving method used to explore the cause-and-effect relationships underlying a particular problem, making it an ideal framework to examine 23andMe’s declining conversion rate.

Step-by-Step Framework Application

1. Begin by stating the problem: a 33% drop in conversion rate at 23andMe.
2. Ask “why” to identify the first layer of potential reasons. This could include changes in market trends, increased competition, pricing issues, or quality of service.
3. Continue the “why” process for each identified cause, delving deeper into factors such as regulatory changes impacting the genetics testing industry or shifts in consumer trust.
4. Assess the data and information available, identifying trends and correlations to support each layer of the analysis.
5. Propose actionable insights or strategies to address the foundational issues contributing to the drop in conversions.

Hypothetical Example

Upon asking the first “why”, we may surmise that perhaps consumer privacy concerns have risen. A second “why” could lead us to consider a recent data privacy scandal in the industry. This cascade of reasoning allows us to pinpoint exact areas of improvement, such as enhancing privacy features or public relations strategies to rebuild consumer trust.

Factual Approximations

Without access to proprietary data, it’s critical to rely on industry knowledge and publicly available information while making logical assumptions. References to industry reports, expert analyses, and competitor actions can shape an informed yet speculative viewpoint on the issue.

Effective Communication Tips

Succinctly articulate the problem and your systematic approach to analysis, using data-driven insights wherever possible. It’s essential to communicate a clear understanding of potential root causes and to convey strategic thinking in proposing effective solutions.

Conclusion

Diagnosing a meteoric drop in conversion like that faced by 23andMe demands an analytical yet creative response—one that not only demonstrates a grasp of industry dynamics but also reflects the structured thinking fundamental to product management. Employing a tried-and-tested framework like the Five Whys can provide interviewees with a robust structure to showcase their problem-solving acumen and strategic mindset, essential traits for any aspiring FAANG product manager.