For SmartRent's self-guided touring feature, should we optimize for maximizing tour bookings or for higher quality leads that are more likely to convert?

Introduction

For SmartRent's self-guided touring feature, we're facing a critical trade-off between maximizing tour bookings and focusing on higher quality leads that are more likely to convert. This decision will significantly impact our user acquisition funnel and overall business performance. I'll analyze this trade-off by examining the product context, identifying key metrics, designing experiments, and providing a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on the current market conditions, I'm thinking this might be a response to increased competition. Could you provide more context on the competitive landscape and how it's affecting our tour conversion rates?

Why it matters: Helps understand external pressures and informs our strategy. Expected answer: Increased competition is driving down conversion rates. Impact on approach: Would emphasize differentiation in our touring experience.

• Considering our revenue model, I assume we charge property managers per successful lease. Is this correct, and are there any changes to this model being considered?

Why it matters: Directly impacts the incentives for optimizing for quantity vs. quality. Expected answer: Confirmation of the revenue model. Impact on approach: Would influence whether we prioritize volume or conversion rate.

• Looking at user behavior, have we noticed any significant differences in conversion rates between various user segments, such as first-time renters vs. experienced movers?

Why it matters: Helps identify if we should tailor our approach for different user groups. Expected answer: Variation in conversion rates across segments. Impact on approach: Might lead to a segmented strategy rather than a one-size-fits-all solution.

• Regarding technical feasibility, do we have the capability to implement advanced lead scoring or qualification mechanisms within our current platform?

Why it matters: Determines the complexity of solutions we can consider. Expected answer: Some capabilities exist, but may require additional development. Impact on approach: Would influence the timeline and resources needed for implementation.

• Considering our current team capacity, are we staffed to handle a potential increase in tour volume, or would we need to scale our operations?

Why it matters: Affects our ability to execute on different strategies. Expected answer: Some capacity constraints exist. Impact on approach: Might favor quality over quantity if scaling operations is challenging.