For Exotel's SMS marketing platform, should we emphasize improving delivery rates or developing more advanced segmentation capabilities?

Introduction

For Exotel's SMS marketing platform, we're facing a critical trade-off between improving delivery rates and developing more advanced segmentation capabilities. This decision will significantly impact our product strategy and user satisfaction. I'll analyze this trade-off by examining the current product landscape, potential impacts, and key metrics, then design an experiment to inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Exotel is facing challenges with SMS delivery rates. Could you provide more context on the current delivery rate and how it compares to industry standards?

Why it matters: Helps quantify the problem and set benchmarks for improvement. Expected answer: Current rate is below 90%, industry standard is 95%+. Impact on approach: If significantly below standard, might prioritize delivery rate improvement.

• Business Context: Based on our revenue model, I'm thinking SMS marketing is a key revenue driver. How does improving these features align with our current business priorities?

Why it matters: Ensures solution aligns with overall business strategy. Expected answer: High priority, directly impacts main revenue stream. Impact on approach: Would justify faster timeline and more resources.

• User Impact: Considering our user base, I'm assuming we have a mix of small businesses and enterprise clients. How would you characterize the split, and which segment is growing faster?

Why it matters: Helps tailor solution to most impactful user segment. Expected answer: 70% small business, 30% enterprise, with enterprise growing faster. Impact on approach: Might lean towards advanced segmentation if enterprise is key focus.

• Technical Feasibility: Given our current architecture, I'm thinking improving delivery rates might require significant backend changes. How complex would it be to implement either option?

Why it matters: Assesses technical feasibility and resource requirements. Expected answer: Delivery rate improvement more complex, segmentation easier. Impact on approach: Might favor segmentation if delivery rate improvement is too resource-intensive.

• Timeline: Considering our product roadmap, I'm assuming this decision needs to be made relatively quickly. What's our timeline for implementing either option?

Why it matters: Helps prioritize short-term vs. long-term impacts. Expected answer: Decision needed within a month, implementation within a quarter. Impact on approach: Shorter timeline might favor easier-to-implement option.