6 Problem description examples to learn from & how to write one

eCommerce is thriving, and businesses constantly search for ways to enhance customer experiences. AI eCommerce Personalization is a game changer for tailoring shopping experiences to individual preferences. To make this work, you need a well-defined problem description to guide development. This blog explores problem description examples and how to write one effectively, giving you a head start on your personalization efforts.

When building personalized shopping experiences, Shopify’s Instant product page builder is a great tool. It offers a user-friendly interface that lets you create dynamic and engaging product pages that reflect individual preferences without needing any technical expertise.

Table of Contents

• What is a problem description?

• 6 problem description examples to learn from

• Questions to answer when writing a problem description

• How to write an effective problem description in 6 simple steps

• Optimize your Shopify store for conversions without breaking the bank with Instant's Shopify product page builder

What is a problem description?

A problem description, or problem statement, articulates an issue without proposing a solution. A succinct explanation of a problem provides enough detail for the reader to grasp the situation. Sometimes, it might be called an opportunity statement, especially when it points to potential innovation or growth. These statements are in executive summaries, business proposals, and research papers. By highlighting a specific challenge, a problem statement underscores the necessity of the project or proposal.

Crafting a compelling problem statement: The key components

A substantial problem statement is concise yet thorough, usually about 150 to 300 words. It includes the problem’s cause and background details. If you know the cause, name it. If not, avoid making assumptions or assigning blame. Next, discuss the impact of the problem on the people affected by it, followed by the broader repercussions for a group or organization.

When to use a problem statement: Seizing opportunities

You can write a problem statement whenever you face a challenge. They help refine project proposals, develop product offerings, clarify outcomes, foster collaboration, and improve user experiences. By framing a challenge as a shared problem, you can rally teams around a common goal and examine the issue from all angles.

6 problem description examples to learn from

Example 1

Since returning to the office full-time, the Working Group’s productivity has decreased approximately 30 percent. Team members, delayed by rush-hour traffic, frequently arrive at work after 9 a.m. When they arrive, they are stressed and unable to focus for their workday's first hour. This often means that about five hours’ worth of work is completed each eight-hour day, in contrast to the team’s higher productivity rate while working from home. 

Impact on client acquisition and revenue

Team members who work through lunch are not significantly more productive than their peers who take lunch. Our reduced productivity has made it challenging to acquire new clients in the past year. With fewer new clients than we onboarded in past years, the Hartsgrove Group is not projected to meet our revenue goals for this fiscal year.

Example 2

Over the past year, customer retention rates for our eCommerce store have declined by approximately 25%. Many first-time buyers do not return for repeat purchases, resulting in a lower customer lifetime value. Post-purchase engagement efforts have been inconsistent, such as:

• Follow-up emails

• Personalized recommendations

• Loyalty incentives

Without a structured retention strategy, we have seen a drop in repeat sales, making it harder to offset rising customer acquisition costs. If this trend continues, our revenue growth will fall below projections for the next fiscal year.

Example 3

Slow website load times cause higher bounce rates

Over the past six months, our website's average load time has increased to nearly five seconds, resulting in a higher bounce rate of 40%. Customers, especially those shopping on mobile devices, abandon our site before exploring products, leading to a noticeable drop in conversions. 

Website speed

Recent performance audits suggest that unoptimized images, excessive third-party scripts, and server response times contribute to these delays. If website performance is not improved, we risk losing more potential customers to competitors with faster and more responsive platforms.

Example 4

Increased product return rates affecting profit margins

Our eCommerce store has experienced a 15% increase in product return rates over the past quarter. Customers frequently cite discrepancies between product images and the items received, unclear sizing charts, and incomplete product descriptions. 

Eroding profits and customer trust

Processing these returns is costly, requiring additional labor, logistics, and restocking fees. The rising return rate has directly impacted our profit margins, lowering overall customer satisfaction scores. Without product listings and quality control improvements, we risk damaging our brand reputation and customer trust.

Example 5

Ineffective ad spend resulting in lower ROAS

Despite increasing our digital advertising budget by 30% this year, our return on ad spend (ROAS) has declined. The cost per acquisition (CPA) for new customers has risen, and many of our ad campaigns are not effectively targeting high-intent shoppers. 

Wasted ad spend and stalled growth

A lack of refined audience segmentation and A/B testing has contributed to inefficient ad spending, resulting in fewer conversions from paid channels. If this inefficiency continues, our marketing expenses will outweigh revenue growth, making it difficult to scale operations profitably.

Example 6

Stockouts and overstock issues leading to lost sales

Over the past two quarters, inventory mismanagement has led to frequent stockouts of best-selling products while lower-demand items remain overstocked. Customers attempting to purchase popular items are met with "out of stock" messages, leading to abandoned carts and lost revenue. 

Capital tied up, profits down

Excess inventory of slow-moving products ties up capital and increases storage costs. Without an improved demand forecasting and inventory management system, we risk continued revenue loss and operational inefficiencies that could impact long-term growth.

Questions to answer when writing a problem description

Crafting a clear problem description begins with identifying the core issue. What's the challenge at hand? If you're addressing a situation where employees can't access their offices for months, state it plainly. A concise summary helps everyone understand the focus. Just say it: People can't work in their offices for a while. That’s your starting point.

Why this matters: Understanding the impact

Explain why it's a big deal once you've nailed down the problem. If people can't work, businesses suffer. Connect the dots between the problem and its consequences to highlight urgency. Lay it out: Without work, companies struggle to survive.

Location, location, location: Where the problem shows up

Pinpoint where the problem occurs. Is it tied to a physical space? In this case, it’s about not having a place to work. Make this connection clear so your description is grounded in reality. The absence of offices is the issue.

Who's feeling it? Identifying those affected

Determine who bears the brunt of the problem. Is it just employees, or are customers impacted too? The more people affected, the more critical the issue. Make it relatable: Everyone tied to the office feels the impact.

Marking the moment: When the problem hit

Establish when the problem first appeared. Was it a sudden event or a gradual shift? Marking this point helps trace the problem's trajectory. Track it back to the first day of lockdowns.

Spotting the symptoms: How the problem manifests

Describe how the problem is noticed. Are there obvious signs? For office closures, it’s pretty straightforward. No people in the office means a problem. Spell it out: An empty office is a clear signal.

The scale of the challenge: How often it happens

Consider how widespread the issue is. Is it an isolated incident or a global phenomenon? Understanding the scope helps gauge the problem’s severity. In this case, it’s massive, affecting businesses everywhere.
By asking these questions, you can distill everything into a clear, concise problem statement. It should highlight the gap, explain its context, and quantify its impact. Once you’ve got that, you’re ready to move forward.

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How to write an effective problem description in 6 simple steps

Whether tackling a business challenge, conducting academic research, or initiating a new project, these six steps will help you create a clear and concise problem statement for your project.

1. Identify the problem

The problem could be a process gap, an unmet client need, or a conflict that requires resolution. Whatever it is, be clear and concise in this definition without delving into causes or possible solutions. For instance, a management issue could be low employee productivity. 

Boosting team performance

You might define the problem with language: "In the last quarter, our team's productivity has decreased by 20%, leading to missed deadlines and declining customer satisfaction. The exact cause of this decline is currently unknown. We must investigate and address this to improve team performance and customer service."

2. Explain the impact

Detail the consequences or impacts of the problem on the business, project, or research. This includes how the issue affects the team members, external stakeholders, or the business’s overarching objective. 

These handy tools and methodologies can assist in measuring this impact, providing a quantifiable basis for understanding the issue’s severity and scope:

• Surveys and questionnaires: These tools gather first-hand feedback from employees, customers, or other relevant stakeholders. This feedback reveals the problem’s effects on morale, productivity, and customer satisfaction.

• Performance metrics: Examples of performance metrics include customer churn rates, revenue growth, and attrition rates.

• Process mapping: This technique outlines the steps in a process, allowing you to pinpoint where problems occur. By mapping out the process, you can visualize the problem's impact and identify areas for improvement.

• Root cause analysis: Teams use this type of analysis to identify the underlying cause of a problem. Tools like the "5 Whys" technique, fishbone diagrams, or a fault tree analysis can assist you with this approach.

3. Specify the location and time frame

The specification should be as detailed as possible. It identifies the exact location (a specific department, team, or process) and time frame (a particular quarter, month, or week) during which the problem occurs.

4. State the ideal condition

Describe what the situation would look like if the problem didn’t exist. This gives your team an ideal outcome and helps measure any solution's success.

5. Highlight the gap

Discuss the gap between the current situation (problem) and the desired situation (solution). This clarifies what needs to change and helps define solutions. A data entry task and its associated issues take two hours, but the goal completion time is 30 minutes. Highlighting this gap will help you pinpoint areas for improvement.

6. Propose possible solutions

While the problem statement should focus on the issue, it can be beneficial to propose starting points to conduct a pre-mortem, a theoretical problem, and a plan for addressing it. This should be a jumping-off point for brainstorming efforts. For instance, a marketing team struggling to attain new leads might propose solutions like revising the target audience, redesigning campaign messaging, or increasing the advertising budget.

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