Should Naked Insurance prioritize adding new features or improving existing ones?

Introduction

The key trade-off for Naked Insurance is whether to prioritize adding new features or improving existing ones. This decision impacts product strategy, user experience, and resource allocation. I'll analyze this trade-off by examining the current product landscape, potential impacts, and key metrics to guide our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about Naked Insurance's current market position. Could you share insights on our market share and primary competitors?

Why it matters: Helps determine if we need to differentiate with new features or improve existing ones for retention. Expected answer: Mid-tier market share with 2-3 major competitors. Impact: Higher market share might favor improving existing features; lower share could push for new features.

• Business Context: Based on our revenue model, I assume we primarily earn through premiums. How does our current product mix contribute to overall revenue?

Why it matters: Identifies which product areas might benefit most from improvements or new features. Expected answer: Car insurance is the primary revenue driver, followed by home and life insurance. Impact: Would focus improvements or new features on the highest-revenue products first.

• User Impact: Considering our user base, are we seeing any significant churn or acquisition challenges in specific segments?

Why it matters: Helps prioritize between retention (improving features) and acquisition (new features). Expected answer: Moderate churn in younger demographics, difficulty acquiring older users. Impact: High churn might prioritize improving existing features; acquisition challenges could favor new features.

• Technical: Regarding our current tech stack, how flexible is it for adding new features versus optimizing existing ones?

Why it matters: Assesses the technical feasibility and resource requirements for each option. Expected answer: Modern, flexible stack but with some legacy components. Impact: A more flexible stack might make adding new features easier, while legacy components could favor improving existing features.

• Resource: What's our current team capacity and skill set distribution between new feature development and optimization?

Why it matters: Determines if we have the right resources for either approach. Expected answer: Balanced team with slightly more experience in optimization. Impact: Team composition could influence which approach is more feasible in the short term.