Amazon Customer Churn: Find Where Shoppers Leave and Fix the Journey

You are a product manager at Amazon and learn that customers are leaving. Explain how you would improve their journey and overall experience to reverse the trend. ```hint Locate the leak before fixing it Customers can drop out at very different points, from never opening the app again to never returning after one bad delivery. Work out who is leaving and at which stage before choosing what to improve. ``` ### Clarifying Questions - What does losing customers mean here: fewer active buyers, Prime members cancelling, or existing customers ordering less often? - How large is the loss and over what period: a sudden drop or a gradual decline? - Is it worldwide, or concentrated in certain countries, categories or customer groups? - Do we know where departing customers go, for example to a competitor, or are they simply spending less overall? ### What a Strong Answer Covers - Defining the customer-loss metric and confirming the decline is real before acting - Segmenting the loss by customer type, region, category and journey stage to find where it concentrates - Ranked hypotheses across price, selection, search, delivery, returns and service, each with the data that would confirm it - Journey improvements matched to the diagnosed cause and prioritized by impact and effort - Success metrics with guardrails such as margin and delivery cost, plus an experiment plan ### Follow-up Questions - If the loss is concentrated among customers whose last order arrived late, what would you change first? - How would you tell customers leaving for a low-price competitor apart from customers spending less because of the economy? - How would you decide on a fix that raises retention but lowers margin per order?