Company Context
EngagePro is a SaaS platform that provides collaboration tools for remote teams, boasting 1 million active users and generating $50 million in annual recurring revenue (ARR). Despite steady revenue, the company has noticed a concerning 10% drop in user engagement over the last quarter, leading to increased scrutiny from stakeholders about potential churn risks and future growth.
Problem
The decline in engagement metrics, such as daily active users (DAU) and feature usage rates, raises alarms despite stable ARR. This discrepancy suggests that while revenue is maintained, user satisfaction and product value may be waning. Understanding the underlying reasons for this drop is critical to ensuring long-term retention and growth.
Task
- Identify key engagement metrics that should be analyzed to understand the drop in user activity.
- Propose a structured investigation plan that includes user research methods and data analysis techniques.
- Recommend potential product changes or features that could address the identified issues.
- Outline success metrics to evaluate the effectiveness of implemented changes.
- Discuss any trade-offs or risks associated with your proposed solutions.
Constraints
- Limited resources for user research (only one UX researcher available).
- Must provide a solution within 4 weeks to align with the upcoming board meeting.
- Any proposed changes must not disrupt current revenue streams or existing user workflows.
