Should Eden Health prioritize expanding its virtual primary care offerings to reach more patients, or focus on deepening relationships with existing employer clients?

Introduction

The trade-off Eden Health faces is whether to prioritize expanding virtual primary care offerings to reach more patients or focus on deepening relationships with existing employer clients. This decision involves balancing growth strategies in a competitive digital health landscape. I'll analyze this trade-off by examining the product ecosystem, potential impacts, key metrics, and experimental approaches to inform a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking Eden Health operates in a B2B2C model, primarily serving employers who offer the service to their employees. Could you confirm if this is correct, and if there are any direct-to-consumer offerings?

Why it matters: Clarifies the primary business model and potential expansion strategies. Expected answer: Primarily B2B2C with limited or no D2C offerings. Impact on approach: Influences whether to focus on employer acquisition or individual user growth.

• Business Context: Based on the trade-off presented, I'm assuming revenue is primarily driven by employer contracts. Can you share how our current revenue split looks between new client acquisition and upselling existing clients?

Why it matters: Helps understand the financial implications of each strategy. Expected answer: 60% from existing clients, 40% from new acquisitions. Impact on approach: A higher percentage from existing clients might favor deepening relationships.

• User Impact: I'm curious about our user engagement metrics. What percentage of employees at our client companies actively use our virtual primary care services?

Why it matters: Indicates potential for growth within existing accounts. Expected answer: 30-40% active usage among eligible employees. Impact on approach: Low usage might suggest focusing on deepening existing relationships first.

• Technical: Considering expansion, how scalable is our current virtual care infrastructure? Are there any technical limitations to serving a significantly larger user base?

Why it matters: Assesses feasibility of rapid expansion. Expected answer: Current infrastructure can handle 2x growth without major upgrades. Impact on approach: Limited scalability might favor focusing on existing clients first.

• Resource: What's our current team capacity for both client management and product development? Are we staffed to pursue both strategies simultaneously?

Why it matters: Determines if we need to choose one strategy or can pursue both. Expected answer: Current team at 80% capacity, limited ability to pursue both fully. Impact on approach: Resource constraints might necessitate prioritizing one strategy.