Should Interswitch prioritize expanding our merchant network or improving existing user experience?

Introduction

The trade-off between expanding Interswitch's merchant network and improving existing user experience is a critical decision that will shape our product strategy and market position. This scenario involves balancing growth with user satisfaction, which are both essential for our long-term success. I'll analyze this trade-off by examining our current situation, potential impacts, and data-driven decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking our current market share might influence this decision. Could you share our current market penetration and how it compares to our competitors?

Why it matters: Helps determine if growth or retention should be prioritized Expected answer: Moderate market share with room for growth Impact on approach: Higher market share might favor UX improvements, while lower share could prioritize network expansion

• Business Context: Based on our revenue model, I assume transaction fees are a significant portion of our income. Can you confirm if this is correct and if there are other major revenue streams we should consider?

Why it matters: Aligns solution with primary revenue drivers Expected answer: Transaction fees are primary, with additional revenue from value-added services Impact on approach: High reliance on transaction fees would favor network expansion

• User Impact: I'm curious about our user retention rates. Do we have data on user churn and the primary reasons for it?

Why it matters: Identifies if UX improvements could significantly impact retention Expected answer: Moderate churn rate with UX issues as a contributing factor Impact on approach: High churn due to UX would prioritize experience improvements

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

Why it matters: Determines feasibility of rapid network expansion Expected answer: Moderately scalable with some limitations Impact on approach: Low scalability would necessitate technical improvements before expansion

• Resource: What's our current team composition in terms of UX designers versus business development roles?

Why it matters: Assesses internal capacity for each option Expected answer: Balanced team with slight emphasis on business development Impact on approach: Imbalance would influence short-term focus and hiring priorities