Should Mercer prioritize expanding its workforce analytics tools to cover more industries or focus on deepening features for existing core sectors?

Introduction

The trade-off Mercer faces is whether to expand its workforce analytics tools to cover more industries or deepen features for existing core sectors. This decision involves balancing market expansion with product depth, potentially impacting Mercer's competitive position and user satisfaction. I'll analyze this trade-off by examining the product context, potential impacts, key metrics, and experimental approaches to inform a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on Mercer's current market position, I'm thinking they might have a dominant share in specific industries. Could you provide more context on Mercer's current market penetration across different sectors?

Why it matters: Helps assess the potential for growth in new industries vs. existing ones. Expected answer: Strong presence in finance, healthcare, and tech; limited in others. Impact on approach: High existing market share would favor deepening features; low share might suggest expansion.

• Considering Mercer's revenue model, I assume it's subscription-based with tiered pricing. How does the current pricing structure align with industry-specific features?

Why it matters: Informs potential revenue impacts of expansion vs. deepening. Expected answer: Higher tiers for industry-specific advanced features. Impact on approach: Could influence decision based on revenue potential of new industries vs. upselling existing clients.

• Looking at user behavior, I'm curious about the adoption rates of advanced features in core sectors. What percentage of users in these sectors utilize the full feature set?

Why it matters: Indicates potential for growth within existing user base. Expected answer: Varied adoption rates across industries, with room for improvement. Impact on approach: Low adoption might suggest focusing on deepening and improving existing features.

• From a technical perspective, how modular is the current analytics platform? Could industry-specific features be easily adapted for new sectors?

Why it matters: Assesses the feasibility and resource requirements for expansion. Expected answer: Moderately modular, with some industry-specific customizations. Impact on approach: High modularity would favor expansion; low modularity might suggest deepening existing features.

• Regarding timeline and resources, what's the current capacity of the product and engineering teams? Are there any upcoming major releases or commitments?

Why it matters: Determines the feasibility of pursuing either option in the near term. Expected answer: Teams are at 80% capacity with ongoing projects. Impact on approach: Limited capacity might favor a focused approach on deepening features.