Should ClassPass prioritize expanding its network of fitness studios or focus on improving the user experience of its existing app features?

Introduction

The trade-off ClassPass faces is whether to prioritize expanding its network of fitness studios or focus on improving the user experience of its existing app features. This decision is crucial for ClassPass's growth strategy and user retention. 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.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming ClassPass is in a growth phase but facing increased competition. Could you share our current market position and primary growth challenges?

Why it matters: Helps prioritize expansion vs. user experience based on competitive landscape Expected answer: Strong position, but facing new entrants and user churn Impact on approach: Would influence balance between acquisition and retention strategies

• Business Context: Based on our revenue model, I'm thinking studio partnerships are a key driver. How does our revenue split work with studios, and what's the current profitability of an average user?

Why it matters: Determines the financial impact of expansion vs. user experience improvements Expected answer: Revenue share with studios, break-even after X months of user retention Impact on approach: Would inform the potential ROI of each strategy

• User Impact: Looking at our user segments, I'm curious about the retention rates across different user types. Can you share insights on which user segments have the highest churn rates?

Why it matters: Identifies whether churn is more related to studio options or app experience Expected answer: Higher churn among new users or in certain geographic areas Impact on approach: Would guide focus on specific user segments or features

• Technical: Considering our current app architecture, I'm wondering about the feasibility of major UX overhauls. What's our current technical debt situation, and how quickly can we iterate on app features?

Why it matters: Assesses the realistic timeline and resources needed for UX improvements Expected answer: Moderate technical debt, 2-week sprint cycles for feature releases Impact on approach: Would influence the scope and timeline of UX improvements

• Resource: Given the potential scope of both options, I'm thinking about team capacity. What resources do we have available for either studio expansion or UX improvements?

Why it matters: Determines the realistic scale of initiatives we can undertake Expected answer: Limited resources, need to prioritize one major initiative Impact on approach: Would shape the recommendation to focus on highest impact area