For IMVU's virtual currency system, how should we weigh the benefits of a more complex economy against the risk of overwhelming new users?

Introduction

The trade-off we're examining today is how to balance the benefits of a more complex virtual currency system for IMVU against the risk of overwhelming new users. This scenario touches on the core of user experience design, economic modeling, and product strategy. I'll be addressing this challenge by analyzing the current system, identifying key metrics, designing experiments, and providing a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming IMVU's virtual currency is central to its revenue model. Could you confirm if this is a primary monetization channel or if there are other significant revenue streams?

Why it matters: Helps prioritize the importance of this decision in the overall business context. Expected answer: Virtual currency is a major revenue driver. Impact on approach: Would influence how aggressively we might pursue complexity for potential revenue gains.

• User Impact: I'm thinking about the user segmentation here. Can you share what percentage of our user base consists of new users vs. experienced users?

Why it matters: Helps balance the needs of different user groups in our decision-making. Expected answer: Roughly 30% new users, 70% experienced. Impact on approach: Would affect how we weight the risk of overwhelming new users against benefits for experienced users.

• Technical Feasibility: Based on our current infrastructure, how challenging would it be to implement a more complex currency system?

Why it matters: Determines the feasibility and timeline of potential changes. Expected answer: Moderately challenging but achievable within 3-6 months. Impact on approach: Would influence the scope and timeline of our recommendations.

• Resource Allocation: What's our current capacity for making changes to the virtual currency system? Do we have dedicated teams or would this compete with other priorities?

Why it matters: Helps understand the practical constraints on implementation. Expected answer: Limited resources, competing with other key initiatives. Impact on approach: Would affect the scale and timing of our proposed solutions.