Should Cazoo prioritize expanding our vehicle inventory or improving the existing online buying experience?

Introduction

The trade-off between expanding Cazoo's vehicle inventory and improving the existing online buying experience is a critical decision that will shape our product strategy and impact our market position. This scenario touches on the core aspects of our business model and user experience. I'll analyze this trade-off by examining our current product state, potential impacts, key metrics, and experimental approaches to guide our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about our current market position. Could you share how our inventory size and conversion rates compare to our main competitors?

Why it matters: Helps understand if we're lagging in a specific area Expected answer: We're competitive in inventory but lag in conversions Impact on approach: Would lean towards improving buying experience

• Business Context: Based on our financial reports, I assume our revenue model is primarily based on vehicle sales margins. Is this correct, or are there other significant revenue streams we should consider?

Why it matters: Ensures focus on primary revenue drivers Expected answer: Primarily sales margins, with some ancillary services Impact on approach: Would prioritize actions that directly impact sales volume and margins

• User Impact: I'm curious about our user segments. Can you tell me which segment has the highest lifetime value, and how they typically interact with our platform?

Why it matters: Helps target improvements to most valuable users Expected answer: Middle-aged professionals with multiple purchases Impact on approach: Would tailor solutions to this segment's needs

• Technical: Regarding our current platform, what's our scalability like for handling increased inventory versus implementing new UX features?

Why it matters: Assesses technical feasibility of each option Expected answer: More headroom for inventory, UX changes more complex Impact on approach: Might favor inventory expansion if UX changes are technically challenging

• Resource: Can you give me an idea of our current team capacity? Are we more constrained on the inventory management side or the UX/development side?

Why it matters: Determines resource allocation possibilities Expected answer: UX team at capacity, inventory team has bandwidth Impact on approach: Might lean towards inventory expansion based on team availability