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Product Management Trade-off Question: Luno cryptocurrency platform expansion strategy
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Vinay

Updated Nov 28, 2024

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Asked at Luno

15 mins

Should Luno prioritize adding more cryptocurrencies or improving existing features?

Product Trade-Off Medium Member-only
Strategic Thinking Data Analysis Product Roadmap Planning Fintech Cryptocurrency Digital Banking
Product Strategy Feature Prioritization User Acquisition Retention Cryptocurrency

Introduction

The trade-off question at hand is whether Luno should prioritize adding more cryptocurrencies or improving existing features. This scenario involves balancing the expansion of our product offering against enhancing the user experience of our current platform. I'll approach this analysis by examining the context, evaluating potential impacts, and proposing a data-driven decision framework.

Analysis Approach

I'd like to start by asking a few clarifying questions to ensure we're aligned on the key aspects of this trade-off. Then, I'll walk you through my analysis, including product understanding, hypothesis formation, metrics identification, experiment design, and ultimately, a recommendation with next steps.

Step 1

Clarifying Questions (3 minutes)

  • Context: I'm thinking about Luno's current market position. Could you share how we're performing relative to our competitors in terms of cryptocurrency offerings and user satisfaction?

Why it matters: Helps gauge the urgency of each option Expected answer: We're lagging in crypto offerings but have average user satisfaction Impact on approach: Would lean towards adding cryptocurrencies if significantly behind

  • Business Context: Based on our revenue model, I assume transaction fees are a key driver. How does adding new cryptocurrencies typically impact our revenue compared to feature improvements?

Why it matters: Aligns decision with financial goals Expected answer: New cryptocurrencies provide immediate revenue boost Impact on approach: Would prioritize new cryptocurrencies if revenue growth is the primary goal

  • User Impact: Considering our user segments, are we seeing more demand for new cryptocurrencies or improved features in our user feedback?

Why it matters: Ensures we're addressing actual user needs Expected answer: Mixed feedback, with newer users wanting more options and experienced users seeking better features Impact on approach: Might suggest a phased approach targeting different user segments

  • Technical: In terms of our current infrastructure, how complex would it be to add new cryptocurrencies compared to improving existing features?

Why it matters: Assesses feasibility and resource requirements Expected answer: Adding cryptocurrencies is more straightforward than major feature overhauls Impact on approach: Could influence timeline and resource allocation

  • Resource: What's our current team capacity and budget allocation for product development?

Why it matters: Determines scope of possible initiatives Expected answer: Limited resources, need to prioritize one direction Impact on approach: Might necessitate a focused strategy rather than parallel efforts

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