Should Luno prioritize adding new cryptocurrencies or improving existing features?

Introduction

The trade-off question at hand is whether Luno should prioritize adding new 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.

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 adding new cryptocurrencies vs. improving features Expected answer: We're competitive in offerings but lagging in user satisfaction Impact on approach: Would lean towards improving existing features

• Business Context: Based on our revenue model, I assume transaction fees are a significant 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 short-term revenue boosts, while feature improvements drive long-term growth Impact on approach: Would consider a balanced strategy with both short and long-term focus

• User Impact: I'm curious about our user segments. What percentage of our users are actively trading multiple cryptocurrencies versus those focused on a few major ones?

Why it matters: Identifies which user group might benefit most from each option Expected answer: Majority of users trade in top 5-10 cryptocurrencies Impact on approach: Might prioritize improving features for major cryptocurrencies first

• Technical: Considering our current architecture, 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 straightforward, feature improvements more complex Impact on approach: Might lean towards adding cryptocurrencies if resources are constrained

• Timeline: Is there any particular market event or competitor move that's driving the urgency of this decision?

Why it matters: Helps prioritize based on external factors Expected answer: Upcoming bull market predictions increasing pressure to expand offerings Impact on approach: Might consider a phased approach, starting with new cryptocurrencies