For Crypto.com's Visa Card program, should we emphasize higher cashback rates or expand the range of perks and partner benefits?

Introduction

The trade-off we're examining today is whether Crypto.com's Visa Card program should focus on higher cashback rates or expand the range of perks and partner benefits. This decision is crucial for the program's growth and user retention strategy. I'll analyze this trade-off by considering user impact, business objectives, and market positioning.

Step 1

Clarifying Questions (3 minutes)

• Business Context: I'm thinking about our current market position. Could you share how our cashback rates and perks compare to our main competitors?

Why it matters: Helps understand our competitive advantage and potential differentiation strategies. Expected answer: We're competitive but not leading in cashback, with a unique set of perks. Impact on approach: Would influence whether we focus on catching up in cashback or doubling down on unique perks.

• User Impact: Based on user feedback, I'm assuming cashback is a key driver for card usage. Can you confirm if this is consistent across all user segments?

Why it matters: Identifies whether a one-size-fits-all approach is appropriate or if we need to consider segment-specific strategies. Expected answer: Cashback is important for all, but higher-tier users also value exclusive perks. Impact on approach: Might lead to a hybrid strategy with tiered offerings.

• Technical Feasibility: I'm thinking about the complexity of implementing new perks versus adjusting cashback rates. Are there any significant technical constraints we should be aware of?

Why it matters: Assesses the feasibility and timeline of implementing different options. Expected answer: Cashback adjustments are simpler; new perks require more integration work. Impact on approach: Could influence the short-term vs. long-term strategy and implementation timeline.

• Resource Allocation: Considering our current team structure, how would you describe our capacity to manage an expanded perks program?

Why it matters: Determines if we have the resources to effectively execute and maintain an expanded perks program. Expected answer: We have a dedicated partnerships team, but it might need expansion. Impact on approach: Might influence the scale and timeline of implementing new perks.

• Timeline and Urgency: Given market dynamics, how urgent is this decision? Are there any upcoming events or competitor moves we need to consider?

Why it matters: Helps prioritize this decision against other initiatives and informs the implementation timeline. Expected answer: Moderately urgent, with a target to implement changes within the next quarter. Impact on approach: Would affect the depth of analysis and experimentation we can conduct before making a decision.