Should Bilt prioritize expanding its rewards catalog with more travel partners or focus on increasing cash back options for everyday spending?

Introduction

The trade-off question at hand is whether Bilt should prioritize expanding its rewards catalog with more travel partners or focus on increasing cash back options for everyday spending. This scenario involves balancing the appeal of travel rewards against the practicality of cash back for daily expenses. My response will analyze this trade-off through various lenses, including user impact, business objectives, and strategic implications.

Step 1

Clarifying Questions (3 minutes)

• Based on Bilt's current market position, I'm thinking travel rewards might be a key differentiator. Could you share how our travel partnerships compare to competitors in terms of user engagement and revenue generation?

Why it matters: Helps assess the potential impact of expanding travel partnerships Expected answer: Travel partnerships drive significant engagement but have room for growth Impact on approach: Would influence the weight given to expanding travel partnerships

• Considering user behavior, I'm assuming cash back appeals to a broader user base. Can you provide insights into the spending patterns and preferences of our current user segments?

Why it matters: Informs the potential reach and impact of increased cash back options Expected answer: Diverse spending patterns with a mix of travel enthusiasts and everyday spenders Impact on approach: Would help tailor the cash back strategy to user needs

• From a technical standpoint, I'm thinking about the complexity of integrating new travel partners versus modifying cash back systems. What's our current technical capacity for each of these options?

Why it matters: Assesses feasibility and resource requirements for each option Expected answer: Travel partner integration is more complex but established; cash back system is flexible Impact on approach: Would influence timeline and resource allocation recommendations

• Regarding our business model, I'm curious about the profitability of travel rewards versus cash back. How do these options compare in terms of margins and long-term value?

Why it matters: Helps align the decision with financial objectives Expected answer: Travel rewards have higher margins but cash back drives more consistent usage Impact on approach: Would impact the balance between short-term gains and long-term sustainability

• Considering our current roadmap, how urgent is this decision, and are there any upcoming features or partnerships that might influence our choice?

Why it matters: Ensures alignment with broader product strategy and timelines Expected answer: Decision needed within next quarter, potential new fintech partnership on horizon Impact on approach: Would affect the recommended timeline and potential phasing of implementation