Introduction
The trade-off between acquiring new customers and increasing retention for About You presents a critical strategic decision. This scenario involves balancing growth with sustainability in the e-commerce fashion industry. I'll analyze this trade-off by examining the product ecosystem, key metrics, and potential experiments to inform our decision.
Analysis Approach
I'd like to outline my approach to ensure we're aligned on the analysis structure and key areas of focus.
Step 1
Clarifying Questions (3 minutes)
Why it matters: Helps determine if we need aggressive acquisition or focus on retention Expected answer: Mid-sized player with room for growth Impact on approach: If small, might lean towards acquisition; if large, retention becomes more critical
Why it matters: Identifies which segments are most valuable for retention efforts Expected answer: Higher CLV in certain demographics or purchase frequency groups Impact on approach: Would help target retention efforts to high-value segments
Why it matters: Determines our ability to execute targeted retention campaigns Expected answer: Moderate capabilities with room for improvement Impact on approach: If limited, might need to focus on acquisition while improving tech
Why it matters: Assesses our ability to shift focus without major restructuring Expected answer: 70% acquisition, 30% retention Impact on approach: Significant shift might require team reorganization
Why it matters: Influences whether we can afford long-term strategies or need quick wins Expected answer: Stable, but looking for growth to support Series C in 18 months Impact on approach: Might need a balanced approach with some quick acquisition wins
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