A good answer might include but is not limited to…

Internal

• Bugs / Glitches in the app – customers were discouraged after having faced issues while using the app
• Ineffective marketing – the marketing strategy for promoting the app is not effective and/or does not reflect the current market context.
• Material not relevant / not new - current base is already saturated with content

External

• New apps – new language learning apps have been launched which provide a better offer, better content, or which are marketed better for the targeted audience
• New language learning opportunities outside the app (e.g., online courses) – new language learning opportunities have appeared that draw customers away from Poliglot

A good answer might include but is not limited to…

1. We notice a certain cyclical trend, with peaks every 3-4 months (March, July, December). As a next step, we should investigate with the client whether these peaks coincide with any direct action from their side (e.g., marketing efforts)
2. Premium / paying users remain at the same nominal level and don’t appear to increase whenever the overall active user base increases. This suggests that regardless of what is triggering the cyclical peaks, it does not have a direct effect on the premium users.
3. Since we can assume a significant part of the revenues comes from the premium customers, the client should prioritize identifying opportunities for growing this segment first.

A good answer might include but is not limited to…

1. Increase overall active base - increase targeted marketing efforts in an effort to recruit more customers (e.g., using advance analytics); develop partnerships and provide affiliate links (e.g., for large youtube channels/influencers);
2. Increase share of premium customers – review value proposition and pricing for premium customers; register feedback from those leaving premium status and address it through additional initiatives; provide affiliate links to partners
3. Reduce churn - identify nudging techniques to help retain customers (e.g., streaks); bring back customers who left app with discounted offers or special prizes; discourage those who want to leave by providing them with a revised offer
4. Adjust pricing – conduct market scan to understand competitor pricing; understand price elasticity based on exit interview; develop tiered pricing plan with regular discounts

A good answer might include but is not limited to…

Restating objective: We aimed to investigate what is causing the stagnating trend in the customer base and how to address it. 

Core recommendation: We believe customers are not reacting well to the current marketing attempts of Poliglot to recruit and retain them. 

Based on our initial analysis, we noticed that marketing efforts have only managed to increase temporarily the number of non-paying users (relatively stable at ~3M users), while keeping stable the number of premium customers (~0.5M)

We suggest to develop initiatives across four core areas: increase overall active base, increase share of premium customers, reduce churn and adjust pricing. 

Risks & next steps: The initial hypothesis we developed requires further investigation, especially in terms of studying and comparing the offers of competitors in the market. Similarly, when developing initiatives, we should aim to ensure they cannot be easily copied by competitors.