For Fanatics's sports betting platform, how should we weigh investing in user acquisition promotions versus improving the core betting experience to maximize long-term customer value?

Introduction

For Fanatics's sports betting platform, we're facing a critical trade-off between investing in user acquisition promotions and improving the core betting experience to maximize long-term customer value. This decision will significantly impact our growth strategy, user retention, and overall platform success. I'll analyze this trade-off by examining our product ecosystem, key metrics, and potential experiments to inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Context: Based on the competitive nature of the sports betting industry, I'm thinking user acquisition is a top priority. Could you share our current market position and how it compares to major competitors?

Why it matters: Helps determine the urgency of user acquisition vs. experience improvements Expected answer: We're in the top 5 but not leading Impact on approach: Would influence balance between acquisition and retention strategies

• Business Context: Considering the seasonal nature of sports, I'm assuming our revenue model has significant fluctuations. How does our current revenue breakdown look between major sports seasons and off-seasons?

Why it matters: Informs timing and focus of promotions vs. experience improvements Expected answer: 70% during major seasons, 30% off-season Impact on approach: Would affect the timing and nature of our investments

• User Impact: I'm thinking our user base might have distinct segments with different behaviors. Can you provide insights into our main user segments and their betting patterns?

Why it matters: Helps tailor strategies for acquisition and experience improvements Expected answer: Casual bettors (60%), hardcore fans (30%), high-rollers (10%) Impact on approach: Would influence targeted features and promotions for each segment

• Technical: Given the real-time nature of sports betting, I'm assuming platform stability is crucial. What's our current uptime and performance during peak betting periods?

Why it matters: Determines if core experience improvements should focus on technical stability Expected answer: 99.9% uptime, occasional lag during major events Impact on approach: Would prioritize backend improvements if stability is an issue

• Resource: Considering the potential scale of both initiatives, I'm curious about our current team structure. How are our product and marketing teams resourced for these efforts?

Why it matters: Helps determine feasibility of pursuing both strategies simultaneously Expected answer: Lean product team, larger marketing team Impact on approach: Would influence the balance and timing of our investments