Should Freshworks prioritize adding new features or improving existing functionality to boost user retention?

Introduction

The key trade-off we're examining is whether Freshworks should prioritize adding new features or improving existing functionality to boost user retention. This decision is critical for Freshworks' product strategy and long-term success. I'll analyze this trade-off by considering user needs, business objectives, and technical constraints to provide a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about Freshworks' current market position. Could you share more about our main competitors and how our feature set compares?

Why it matters: Helps understand if we're playing catch-up or innovating Expected answer: We're competitive but lagging in some areas Impact: Would lean towards new features if significantly behind

• Business Context: Based on our revenue model, I assume we're primarily subscription-based. How does our pricing structure align with different feature sets?

Why it matters: Informs whether new features could justify price increases Expected answer: Tiered pricing based on feature access Impact: Might prioritize new features for higher-tier offerings

• User Impact: I'm curious about our user segments. Can you tell me which segment has the highest churn rate currently?

Why it matters: Identifies where retention efforts should focus Expected answer: Mid-tier business users have highest churn Impact: Could target improvements or new features specifically for this segment

• Technical: Considering our current architecture, how modular is our system for adding new features versus optimizing existing ones?

Why it matters: Assesses technical feasibility and resource requirements Expected answer: Fairly modular, but some legacy systems Impact: Might influence timeline and resource allocation for each option

• Timeline: Is there a specific timeframe we're working with for seeing improvements in retention metrics?

Why it matters: Helps prioritize short-term vs. long-term strategies Expected answer: Aiming for significant improvement within 6 months Impact: Could favor optimizing existing features for quicker wins