Nike's sitewide conversion has declined year over year. How would you evaluate this?

A year-over-year decline in sitewide conversion rate at Nike warrants a multi-faceted investigation. While it could signal underlying issues, it's crucial to consider Nike's business model, particularly their strategy of releasing limited-edition, high-demand products. These releases often lead to items being added to carts but selling out before purchase completion, which can artificially depress conversion rates.

To evaluate this effectively, I would:

1. Segment the data: Analyze conversion rates by product type (e.g., general release vs. limited edition), traffic source, device, and customer segment. This helps isolate if the decline is widespread or concentrated.
2. Examine the "add to cart" to "purchase" funnel: Specifically look at the drop-off rate between adding an item to the cart and completing the purchase. High rates here could indicate stock issues or checkout friction.
3. Investigate technical factors: Rule out any website performance issues, bugs, or changes in tracking implementation that could be skewing the data.
4. Consider external factors: Analyze market trends, competitor activity, and overall economic conditions that might influence consumer purchasing behavior.
5. Review marketing and promotional activities: Assess the impact of recent campaigns, discounts, or lack thereof on conversion.

Understanding these elements will provide a clearer picture of whether the conversion decline is a symptom of a larger problem or a predictable outcome of Nike's unique product strategy.