Should CRED prioritize adding more reward partners or improving existing reward redemption experiences?

Introduction

The trade-off we're examining today is whether CRED should prioritize adding more reward partners or improving existing reward redemption experiences. This decision is crucial for CRED's growth strategy and user satisfaction. I'll analyze this trade-off by considering user needs, business objectives, and technical feasibility. Let's start by clarifying some key aspects of the situation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking CRED's current reward partner ecosystem might be reaching saturation. Could you share how our current reward partner diversity compares to industry benchmarks?

Why it matters: Helps determine if adding partners is truly necessary or if optimization is more critical. Expected answer: We're slightly below industry average in partner diversity. Impact on approach: If below average, might lean towards adding partners; if above, focus on optimization.

• Business Context: Based on our revenue model, I assume a significant portion comes from partner commissions. What percentage of our revenue is directly tied to reward redemptions?

Why it matters: Determines the financial impact of this decision. Expected answer: 30-40% of revenue from reward redemptions. Impact on approach: Higher percentage would prioritize partner expansion for revenue growth.

• User Impact: I'm curious about our user engagement metrics. What percentage of our active users redeem rewards at least once a month?

Why it matters: Indicates the importance of rewards to our core user base. Expected answer: Around 50% of active users redeem monthly. Impact on approach: Lower percentage might suggest focusing on improving redemption experience.

• Technical: Regarding our current redemption process, are there any major technical bottlenecks preventing a smoother user experience?

Why it matters: Identifies if technical limitations are a key factor in the decision. Expected answer: Some API integration issues with certain partners. Impact on approach: Significant technical issues might prioritize improving existing systems.

• Resource: Considering our current team structure, do we have more capacity in partner acquisition or in UX/UI development?

Why it matters: Aligns decision with our current resource allocation. Expected answer: Slightly more capacity in UX/UI development. Impact on approach: More UX/UI capacity might favor improving existing experiences.