Is it better for Skillshare to focus on expanding our course catalog or improving the quality of existing popular classes?

Introduction

The trade-off between expanding Skillshare's course catalog and improving the quality of existing popular classes is a critical decision that will shape our platform's future. This scenario touches on the core of our value proposition and how we deliver it to our users. I'll analyze this trade-off by examining its impact on our ecosystem, evaluating key metrics, and proposing an experimental approach to guide our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about our current market position. Could you share our market share and how it compares to our main competitors?

Why it matters: Helps determine if growth or quality improvement is more critical for competitiveness. Expected answer: We're a major player but facing increased competition. Impact on approach: If we're losing market share, it might favor expansion; if we're leading, quality improvement could be key.

• Business Context: Based on our revenue model, I assume we operate on a subscription basis. What's the breakdown between new user acquisition and retention in terms of revenue contribution?

Why it matters: Influences whether we should focus on attracting new users or retaining existing ones. Expected answer: 60% from existing users, 40% from new acquisitions. Impact on approach: A higher retention contribution might lean towards quality improvement.

• User Impact: I'm curious about our user engagement patterns. What's the average number of courses a user completes in their first three months?

Why it matters: Indicates whether users are finding enough relevant content or if they're struggling with course quality. Expected answer: Users complete 2-3 courses in the first three months. Impact on approach: Low completion rates might suggest a need for quality improvement rather than expansion.

• Technical: Considering our platform infrastructure, how scalable is our current system for handling a significant increase in course offerings?

Why it matters: Determines if rapid expansion is feasible without major technical overhauls. Expected answer: Our system can handle a 50% increase without significant changes. Impact on approach: High scalability might favor expansion, while limitations could push towards quality focus.

• Resource: What's our current ratio of content quality assurance staff to the number of courses?

Why it matters: Helps assess our capacity to maintain or improve quality while expanding. Expected answer: One QA staff member per 100 courses. Impact on approach: A low ratio might indicate a need to focus on quality before expansion.