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WEEK 1 - Problem Statement

The document outlines five key problems affecting an online shopping business, including cart abandonment, product delivery delays, declining customer retention, high employee turnover, and ineffective marketing. Common themes identified include customer experience issues, operational inefficiencies, and revenue impacts. The main problem is the potential decline in revenue and customer satisfaction due to these operational challenges.

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kathrina cullado
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8 views3 pages

WEEK 1 - Problem Statement

The document outlines five key problems affecting an online shopping business, including cart abandonment, product delivery delays, declining customer retention, high employee turnover, and ineffective marketing. Common themes identified include customer experience issues, operational inefficiencies, and revenue impacts. The main problem is the potential decline in revenue and customer satisfaction due to these operational challenges.

Uploaded by

kathrina cullado
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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BSN 4-2

GROUP 5
PROBLEM STATEMENT

Problem 1: Customer Experience in Online Shopping

• Who: Customers shopping on our website.


• What: Customers are frequently abandoning their carts during the checkout process.
• Where: On the online shopping platform.
• When: Over the last six months.
• Why: Customers find the checkout process too complicated, with too many steps and
unclear instructions.
• Problem Statement: Over the past six months, customers have been abandoning their
carts at an increasing rate during the checkout process due to a complicated and unclear
user interface, leading to lost sales and frustrated customers.

Problem 2: Product Delivery Delays

• Who: Our customers who rely on timely delivery.


• What: Products are being delayed beyond the promised delivery window.
• Where: Nationwide delivery to customer addresses.
• When: Over the last quarter.
• Why: Shipping logistics issues, especially during peak seasons.
• Problem Statement: In the past three months, we’ve experienced a significant increase
in product delivery delays beyond the promised window due to issues with shipping
logistics, particularly during peak periods, resulting in customer dissatisfaction.

Problem 3: Customer Retention and Loyalty

• Who: Our loyal customers.


• What: Repeat purchases from existing customers are declining.
• Where: Across our entire customer base.
• When: In the last year.
• Why: Lack of personalized offers and engaging post-purchase communication.
• Problem Statement: Over the past year, repeat purchases from our existing customers
have declined because they are not receiving personalized offers or engaging post-
purchase communication, reducing customer loyalty and long-term retention.

Problem 4: Employee Turnover

• Who: Our employees, especially within the customer service team.


• What: There has been a high turnover rate in the customer service department.
• Where: In our customer service team at the headquarters.
• When: Over the past six months.
• Why: Low employee morale and limited career development opportunities.
• Problem Statement: In the last six months, our customer service department has faced
high turnover rates due to low employee morale and a lack of clear career development
opportunities, affecting service quality and team stability.

Problem 5: Marketing Effectiveness

• Who: Our marketing team and potential customers.


• What: Our digital marketing campaigns are not generating the expected leads.
• Where: Across online advertising platforms (social media, Google ads).
• When: Over the past quarter.
• Why: Campaign targeting is too broad, and messaging doesn’t resonate with the specific
needs of our target audience.
• Problem Statement: Over the last three months, our digital marketing campaigns have
not met lead generation targets due to overly broad targeting and messaging that fails to
resonate with the specific needs of our target audience, leading to wasted ad spend.

Based on the problem statements, we can identify the following common themes:

1. Customer Experience:
o Personalization: Lack of personalized experiences, such as tailored offers and
communications.
o Efficiency: Inefficient processes, such as complicated checkout processes and
delayed deliveries.
o Communication: Poor communication and lack of transparency, especially
regarding delivery updates and customer service inquiries.

2. Operational Inefficiencies:
o Targeting: Ineffective targeting strategies, leading to wasted ad spend.
o Logistics: Issues with shipping logistics, resulting in delayed deliveries.
o Employee Morale: Low employee morale and lack of career development
opportunities.

3. Revenue Impact:
o Decreased Sales: Reduced sales due to cart abandonment, lost leads, and fewer
repeat purchases.
o Increased Costs: Increased costs due to wasted ad spend and potential customer
refunds or replacements.
Main problem: Our business might experience declining revenue and customer
satisfaction due to operational inefficiencies, poor customer retention, and high
employee turnover, resulting in lost sales and weakened performance.

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