Should Cedar prioritize expanding its pre-visit price estimation tool to more procedures or focus on enhancing the accuracy of existing estimates?

Introduction

The trade-off Cedar faces is whether to prioritize expanding its pre-visit price estimation tool to more procedures or focus on enhancing the accuracy of existing estimates. This decision involves balancing breadth versus depth in product development, with significant implications for user experience, market positioning, and resource allocation. I'll analyze this trade-off through the lens of product strategy, user impact, technical feasibility, and business objectives.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking Cedar's current market position and competitive landscape are crucial here. Could you share how Cedar's price estimation tool compares to competitors in terms of procedure coverage and accuracy?

Why it matters: Helps assess the urgency of expansion vs. improvement Expected answer: Cedar leads in accuracy but lags in procedure coverage Impact on approach: Would prioritize expansion if significantly behind competitors

• Business Context: Based on Cedar's revenue model, I assume improving estimate accuracy could directly impact conversion rates. How does estimate accuracy currently correlate with patient likelihood to proceed with procedures?

Why it matters: Determines potential revenue impact of accuracy improvements Expected answer: Strong positive correlation between accuracy and conversions Impact on approach: Would lean towards accuracy improvement if correlation is high

• User Impact: I'm thinking about different user segments here. Can you tell me which user groups (e.g., patients, providers) are most affected by estimate inaccuracies versus limited procedure coverage?

Why it matters: Helps prioritize based on user needs and potential impact Expected answer: Patients more concerned with accuracy, providers with coverage Impact on approach: Would balance approach based on most critical user segment

• Technical Feasibility: Considering the complexity of healthcare pricing, I'm curious about the technical challenges. What are the main obstacles in improving estimate accuracy versus expanding to new procedures?

Why it matters: Assesses feasibility and resource requirements for each option Expected answer: Accuracy improvement more complex due to variable factors Impact on approach: Would influence resource allocation and timeline estimates

• Resource Allocation: Given the potential scope of both options, I'm wondering about team capacity. How is the product team currently structured, and what bandwidth do we have for either initiative?

Why it matters: Determines feasibility of pursuing one or both options Expected answer: Limited resources, team more experienced in expansion Impact on approach: Might suggest phased approach or focus on team strengths