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Diagnose Drop in Prime Subscriptions

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Problem

Business Context

Amazon Prime, with over 200 million subscribers globally, recently experienced a significant drop in new subscriptions, declining by 15% in the last month compared to the previous quarter. This decline is concerning for the product team, as subscription growth is critical for revenue and customer loyalty. The VP of Prime Membership wants to understand the factors contributing to this downturn.

Available Data

Data SourceDescriptionGranularity
subscription_dataRecords of subscription sign-ups, cancellations, and renewalsDaily
user_feedbackUser reviews and feedback scores regarding Prime servicesPer user
marketing_campaignsData on recent marketing initiatives and their performanceCampaign level
competitor_analysisInsights on competitor pricing and offeringsMonthly
user_engagementMetrics on user activity within Prime Video, Prime Music, and other servicesDaily

Task

  1. Identify and define key metrics related to Prime subscriptions, including churn rate and acquisition cost.
  2. Decompose the subscription data to identify potential drivers of the decline.
  3. Analyze user feedback for common themes or issues that may correlate with the drop.
  4. Recommend 2-3 actionable strategies to address the decline and improve subscription growth.
  5. Highlight any potential risks associated with your recommendations.

Constraints

  • The analysis should be completed within one week for the upcoming executive meeting.
  • You have access to a SQL-queryable data warehouse with the tables listed above.