Should Micro Connect prioritize expanding its merchant network or focus on improving the user experience of its existing mobile payment app?

Introduction

The trade-off Micro Connect faces is whether to prioritize expanding its merchant network or focus on improving the user experience of its existing mobile payment app. This decision is crucial for the company's growth strategy and market position. I'll analyze this trade-off by examining the current product landscape, potential impacts, key metrics, and experimental approaches to inform a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Micro Connect is a relatively established player in the mobile payments space. Could you give me a quick overview of our market position and primary competitors?

Why it matters: Helps frame the urgency and potential impact of our decision. Expected answer: Mid-sized player with strong regional presence, competing against larger fintech companies. Impact on approach: Would influence whether we prioritize aggressive growth or consolidation.

• Business Context: Based on our current revenue model, I'm thinking merchant fees are a significant income source. How does our revenue split between merchant fees and other streams like user subscriptions or data monetization?

Why it matters: Helps prioritize between merchant acquisition and user retention/engagement. Expected answer: 70% merchant fees, 30% other sources. Impact on approach: Higher merchant fee dependence would lean towards network expansion.

• User Impact: Considering our user base, I'm curious about our current user retention rates. What percentage of our monthly active users have been with us for over six months?

Why it matters: Indicates whether we have a user churn problem that needs addressing. Expected answer: 60% retention rate over six months. Impact on approach: Lower retention would prioritize UX improvements.

• Technical: Given the two options, I'm wondering about our technical capacity. How scalable is our current infrastructure for onboarding new merchants versus implementing significant UX changes?

Why it matters: Helps understand technical constraints and feasibility. Expected answer: More prepared for merchant onboarding than major UX overhauls. Impact on approach: Would influence timeline and resource allocation for each option.

• Resource: Thinking about our team structure, how are our product and engineering resources currently allocated between merchant acquisition and UX development?

Why it matters: Indicates current priorities and potential for reallocation. Expected answer: 60% merchant acquisition, 40% UX development. Impact on approach: Significant reallocation might be needed for UX focus.