“An object in motion will remain in motion unless acted on by an unbalanced force.”
Newton’s first law of motion is commonly used by physicists and engineers, but it plays an important role in Nick Scope’s work in fintech, too.
Scope is the head of data and insights at tastytrade, an online brokerage firm for active traders, and one of the recent research projects he spearheaded was finding out why customers that were in motion were interrupted and what the “unbalanced force” was that caused it.
While Scope wasn’t actually assessing laws of physics, the idea was the same.
“We noticed a significant number of customers completing account opening but never funding their accounts,” Scope said. “Rather than make assumptions, we wanted to hear directly from them.”
After a cross-functional investigation into the customer onboarding journey, Scope and his team transformed their insights into action. Here’s how.
What was the origin story behind this research project?
We noticed a significant number of customers completing account opening but never funding their accounts. Rather than make assumptions, we wanted to hear directly from them. The question was straightforward: What's preventing people interested enough to open an account from using our platform by funding those accounts?
The ultimate goal was to identify friction so we could remove those barriers to entry.
Describe how you conducted this research.
One of the ways that tastytrade conducts research is via surveys. Specifically in this instance, we were trying to understand conversion barriers of customers who had successfully opened an account but did not convert to a funded account.
This research combined structured questions and open-ended feedback to help us further understand customer perspectives. We subsequently added demographic segmentation (e.g., international or domestic) and other internal data points to help us deliver insights on how we can better serve customers.
What does tastytrade do?
The tasty house of brands includes tastytrade, tastylive, tastyfx, and tastycrypto. Together, they create a connected ecosystem that blends financial education, media and trading platforms to help individual investors learn, trade and grow under one unified and empowering brand experience.
What was the research process like?
We designed a short survey targeting customers who had opened accounts but hadn't funded them by forming a cross-departmental group to design questions that would lead to actionable insights. Once we received responses, we conducted frequency analysis, cohort segmentation and text analysis of open-ended responses. The data management component required integrating survey responses with existing customer data — including geographic location and platform preferences.
Inside the research process at tastytrade
Head of Data and Insights Nick Scope led his team at tasty through a customer research study that consisted of the following steps:
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Identifying the problem — customers were creating accounts but not making the jump to a funded account.
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Gathering data — Scope and his team created a targeted survey to assess what was interrupting the customer journey.
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Analyzing the insights — the team used frequency analysis, cohort segmentation and text analysis along with customer data to identify the problem.
What were the key takeaways from this research?
Our current funding method options represented the primary barrier affecting a substantial portion of users. Mobile users showed the highest funding attempt rates but also reported the most complexity complaints.
The most important finding was that customers gave us positive feedback while citing operational barriers like funding methods. For example, international users were significantly more likely to attempt funding but faced considerably more barriers. This research is driving improvements that we believe will be directly felt by customers, such as funding now offered via stablecoin.
What does research like this reflect to you about the innovation or thought leadership at your company?
This research reflects our commitment to making decisions based on data rather than assumptions. We focus on both quantitative rigor and qualitative depth, segmenting findings across multiple dimensions to understand how different customer groups experience our offerings.
“This research reflects our commitment to making decisions based on data rather than assumptions.”
We know that valuable insights can come from anywhere in the customer journey and we want to ensure we never lose the voice of the customer in our decisions. By understanding what prevents customers from moving forward with funding, we can deliver better experiences for future customers and continue improving what we offer.
Frequently Asked Questions
What challenge did Tastytrade’s data team uncover?
They discovered that many users were completing account sign-up but not funding their accounts — an “interrupted motion” that pointed to friction in onboarding.
How did the team investigate the problem?
Scope and his team launched a short, targeted survey for customers who hadn’t funded their accounts, combining structured questions with open-ended feedback and internal data for richer insights.
What methods were used to analyze the data?
The team performed frequency analysis, cohort segmentation, and text analysis while merging survey data with existing customer information like geography and platform preferences.
What were the most important findings?
Funding methods posed the biggest barrier, particularly for international and mobile users who found the process complex. These insights directly informed new funding options, including stablecoin transactions.
What does this project say about Tastytrade’s culture?
It reflects a commitment to data-driven decision-making and customer empathy — ensuring that every improvement starts with understanding the customer’s voice.
