Is it better for TMRW to focus on acquiring new users or improving retention of existing ones?

Introduction

The key trade-off we're examining is whether TMRW should focus on acquiring new users or improving retention of existing ones. This decision is critical for the company's growth strategy and resource allocation. I'll analyze this trade-off by considering various factors including business context, user impact, technical feasibility, and resource implications.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming TMRW is a consumer-facing product with a significant user base. Could you confirm if this is correct, and provide a brief overview of the product's current market position?

Why it matters: Helps frame the analysis within the correct market context Expected answer: Confirmation of product type and market position Impact on approach: Would influence the balance between acquisition and retention strategies

• Business Context: Based on the focus on user acquisition vs. retention, I'm thinking this might be related to our growth targets. Can you share our current growth rate and how it compares to our targets?

Why it matters: Helps prioritize solution against business objectives Expected answer: Current growth rate below target, need to accelerate Impact on approach: Would justify more aggressive acquisition tactics if growth is lagging

• User Impact: I'm curious about our user segments. Do we have data on which segments have the highest churn rates and which have the most growth potential?

Why it matters: Identifies where to focus retention and acquisition efforts Expected answer: Specific segments with high churn or growth potential Impact on approach: Would tailor strategies to target specific user groups

• Technical: Considering potential product changes, are there any major technical constraints or upcoming platform changes that could impact our ability to implement new features for acquisition or retention?

Why it matters: Ensures proposed solutions are technically feasible Expected answer: No major constraints, but need to consider mobile app limitations Impact on approach: Would focus on solutions compatible with current tech stack

• Resources: I'm thinking about team capacity. Do we have dedicated teams for user acquisition and retention, or would this require reallocating resources?

Why it matters: Determines feasibility of executing strategies simultaneously Expected answer: Limited resources, need to prioritize one area Impact on approach: Would influence whether to recommend a focused or balanced strategy