Should Fetch (Services (B2C Non-Financial)) prioritize expanding its retailer network to increase user choice or focus on deepening partnerships with existing retailers for better rewards?

Introduction

The trade-off we're examining today is whether Fetch should prioritize expanding its retailer network to increase user choice or focus on deepening partnerships with existing retailers for better rewards. This decision is crucial for Fetch's growth strategy and user satisfaction. I'll analyze this trade-off by examining the product context, potential impacts, key metrics, and experimental approaches to inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about Fetch's current market position. Could you share our current market share and how it compares to our main competitors?

Why it matters: Helps gauge the urgency of expansion vs. deepening existing partnerships. Expected answer: Fetch has a significant market share but faces growing competition. Impact on approach: A strong market position might favor deepening partnerships, while a weaker one could prioritize expansion.

• Business Context: Based on our business model, I assume we earn revenue through partnerships. Is our primary revenue stream from transaction fees, affiliate marketing, or a combination?

Why it matters: Aligns our strategy with our core revenue model. Expected answer: A mix of transaction fees and affiliate marketing. Impact on approach: Higher reliance on affiliate marketing might favor deepening partnerships for better rewards.

• User Impact: I'm curious about our user retention rates. Have we seen any significant changes in user churn over the past year?

Why it matters: Indicates whether user satisfaction is a pressing concern. Expected answer: Slight increase in churn rate over the past year. Impact on approach: Higher churn might prioritize improving rewards to retain users.

• Technical: Considering our current infrastructure, how scalable is our system for onboarding new retailers?

Why it matters: Assesses the feasibility of rapid expansion. Expected answer: Moderately scalable with some limitations. Impact on approach: Limited scalability might favor focusing on existing partnerships in the short term.

• Resource: Can you give me an idea of our current team capacity for managing retailer relationships?

Why it matters: Determines our ability to effectively manage more partnerships. Expected answer: Team is at 80% capacity with current partnerships. Impact on approach: Limited capacity might favor deepening existing partnerships over expansion.