Should GoodRx prioritize expanding its prescription discount card program or focus on growing its telehealth services to drive user acquisition?

Introduction

The trade-off we're examining today is whether GoodRx should prioritize expanding its prescription discount card program or focus on growing its telehealth services to drive user acquisition. This decision is crucial for GoodRx's growth strategy and market positioning. I'll analyze both options, considering their impact on user acquisition, revenue potential, and long-term business sustainability.

Step 1

Clarifying Questions (3 minutes)

• Based on recent market trends, I'm thinking telehealth might be a high-growth area. How has the adoption of our telehealth services compared to industry benchmarks over the past year?

Why it matters: Helps assess the growth potential and market fit of our telehealth offering. Expected answer: Our telehealth adoption is growing but slightly below industry average. Impact on approach: If below average, we'd need to investigate barriers to adoption before scaling.

• Considering our revenue model, I assume the prescription discount program is currently our primary revenue driver. What percentage of our total revenue does it represent?

Why it matters: Understand the financial implications of shifting focus away from our core offering. Expected answer: The discount program accounts for 70-80% of revenue. Impact on approach: A high percentage would necessitate a more cautious approach to pivoting resources.

• Looking at user behavior, I'm curious about the overlap between our discount card users and telehealth users. What percentage of our users utilize both services?

Why it matters: Identifies potential for cross-selling and integrated user experiences. Expected answer: Currently, only 15-20% of users use both services. Impact on approach: Low overlap suggests opportunity for cross-promotion and integrated offerings.

• Regarding technical infrastructure, how scalable is our current telehealth platform? Could it handle a 5x increase in users without major overhauls?

Why it matters: Assesses our readiness for rapid telehealth growth from a technical perspective. Expected answer: The platform can handle 2-3x growth, but would need upgrades for 5x. Impact on approach: Technical limitations could influence the timeline and resource allocation for scaling telehealth.

• Considering our team structure, how are our product and engineering resources currently allocated between the discount program and telehealth services?

Why it matters: Understand the current resource distribution and potential for reallocation. Expected answer: 70% on discount program, 30% on telehealth. Impact on approach: Significant reallocation might be needed to support telehealth growth, impacting timelines and capacity.