Should Doma prioritize expanding its title insurance coverage to more states or focus on improving the user experience of its existing digital closing platform?

Introduction

The trade-off we're examining today is whether Doma should prioritize expanding its title insurance coverage to more states or focus on improving the user experience of its existing digital closing platform. This decision is crucial for Doma's growth strategy and market positioning. I'll analyze this trade-off by examining the product context, potential impacts, key metrics, and experimental approaches to inform a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking Doma's current market coverage might be influencing this decision. Could you share which states Doma currently operates in and what percentage of the U.S. real estate market this represents?

Why it matters: Helps assess the potential impact of expansion vs. improvement Expected answer: Coverage in major markets, representing 60-70% of U.S. real estate transactions Impact on approach: Higher current coverage would lean towards UX improvement, lower coverage towards expansion

• Business Context: Based on Doma's business model, I assume title insurance is the primary revenue driver. How does the revenue from the digital closing platform compare to title insurance premiums?

Why it matters: Informs prioritization based on revenue potential Expected answer: Title insurance generates 80% of revenue, digital closing platform 20% Impact on approach: Higher platform revenue would justify more focus on UX improvements

• User Impact: I'm curious about user adoption rates. What percentage of eligible transactions currently use the digital closing platform?

Why it matters: Indicates potential for growth through UX improvements Expected answer: 40-50% adoption rate among eligible transactions Impact on approach: Lower adoption rates would suggest focusing on UX improvements

• Technical: Regarding the digital closing platform, are there any major technical limitations or scalability issues that could impact UX improvements?

Why it matters: Assesses feasibility and potential impact of UX focus Expected answer: Some legacy systems integration challenges, but no major scalability issues Impact on approach: Significant technical debt would influence the scope and timeline of UX improvements

• Resource: Can you give me an idea of the current team structure and capacity for both expansion and UX improvement initiatives?

Why it matters: Helps determine resource allocation and feasibility Expected answer: Dedicated teams for both areas, with some flexibility in resource allocation Impact on approach: Limited resources in either area would impact the recommendation and timeline