# Investigate a Drop in Sales
Sales have dropped. How would you investigate the cause and decide what to do next? Begin by clarifying the sales definition and comparison period. Explain how you would break down the metric, prioritize hypotheses, and separate a data problem from a real business change. No company, product, or numerical dataset is specified.
### What a Strong Answer Covers
- A precise definition of sales and validation of reporting completeness.
- A decomposition into volume, conversion, and order value appropriate to that definition.
- A prioritized segmentation and timeline of plausible demand or operational changes.
- Evidence that distinguishes explanation from causal attribution and supports a response.
```hint Check what the total contains
Gross order value, recognized revenue, and net revenue can move differently when refunds or timing change.
```
### Follow-up Questions
- What if total sales fell but conversion rose?
- How would a change in customer mix alter your interpretation of average order value?
Overview: Use a structured sales-drop investigation covering metric definitions, data quality, funnel decomposition, segmentation, and causal evidence.
Sales have dropped. How would you investigate the cause and decide what to do next? Begin by clarifying the sales definition and comparison period. Explain how you would break down the metric, prioritize hypotheses, and separate a data problem from a real business change. No company, product, or numerical dataset is specified.
What a Strong Answer Covers Guidance
A precise definition of sales and validation of reporting completeness.
A decomposition into volume, conversion, and order value appropriate to that definition.
A prioritized segmentation and timeline of plausible demand or operational changes.
Evidence that distinguishes explanation from causal attribution and supports a response.
Follow-up Questions Guidance
What if total sales fell but conversion rose?
How would a change in customer mix alter your interpretation of average order value?