For Newegg's Premier membership, should we emphasize exclusive deals and discounts or prioritize faster shipping and enhanced customer support?

Introduction

For Newegg's Premier membership, we're facing a critical trade-off between emphasizing exclusive deals and discounts versus prioritizing faster shipping and enhanced customer support. This decision will significantly impact our value proposition and customer retention strategy. I'll analyze this trade-off by examining our product understanding, key metrics, and potential experiments to inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about our current market position. Could you share how our Premier membership is performing compared to competitors like Amazon Prime?

Why it matters: Helps understand our competitive advantage and areas for improvement Expected answer: We're trailing in market share but growing steadily Impact: Would focus on differentiating features rather than mimicking competitors

• Business Context: Based on our revenue model, I assume Premier contributes significantly to our bottom line. What percentage of our total revenue comes from Premier subscriptions versus one-time purchases?

Why it matters: Determines the strategic importance of Premier to our overall business Expected answer: 30-40% of revenue from Premier subscriptions Impact: Higher percentage would justify more aggressive improvements and marketing

• User Impact: Considering user behavior, are we seeing any trends in why customers choose or churn from Premier?

Why it matters: Identifies key pain points and value drivers for our target audience Expected answer: Price sensitivity and shipping speed are top factors Impact: Would help prioritize between deals/discounts and shipping improvements

• Technical: Regarding faster shipping, do we have the infrastructure to support significant improvements in delivery times?

Why it matters: Determines feasibility of enhancing our shipping capabilities Expected answer: Some improvements possible, but major overhaul needed for nationwide 1-day delivery Impact: Would influence whether to focus on shipping or other benefits in the short term

• Resource: What's our current capacity for enhancing customer support? Do we have budget for hiring or need to optimize existing resources?

Why it matters: Assesses our ability to deliver on enhanced support promises Expected answer: Limited budget for new hires, focus on efficiency improvements Impact: Would guide our approach to improving customer support within constraints