Should Omada prioritize expanding its digital health coaching services or focus on enhancing its existing diabetes prevention program to improve user retention?

Introduction

The trade-off question at hand is whether Omada should prioritize expanding its digital health coaching services or focus on enhancing its existing diabetes prevention program to improve user retention. This scenario involves balancing growth through new offerings against optimizing current core products. I'll analyze this trade-off by examining the business context, user impact, technical feasibility, and resource implications to provide a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on Omada's business model, I'm thinking revenue is primarily driven by B2B partnerships with employers and health plans. Could you confirm if this is still the case, or if there's been a shift towards direct-to-consumer?

Why it matters: Helps determine which customer segment to prioritize in our decision Expected answer: B2B partnerships remain the primary revenue driver Impact on approach: Would focus on solutions that appeal to enterprise clients and their needs

• Considering user behavior, I'm assuming the diabetes prevention program has a specific duration or curriculum. Can you share how long users typically engage with the program?

Why it matters: Informs retention strategies and potential for expanding services Expected answer: 12-month program with highest drop-off in first 3 months Impact on approach: Would influence whether to focus on early-stage retention or long-term engagement

• Looking at technical feasibility, I'm thinking the digital health coaching expansion might require new AI or machine learning capabilities. Is this aligned with Omada's current technical roadmap?

Why it matters: Determines the complexity and timeline of expanding services Expected answer: Some AI capabilities in place, but significant expansion needed Impact on approach: Would affect resource allocation and timeline for new service development

• Regarding resource allocation, I'm curious about the current team structure. Are there separate teams for the diabetes prevention program and other health coaching services, or is it a unified product team?

Why it matters: Influences how we approach scaling or optimizing different product areas Expected answer: Unified product team with specialized sub-teams Impact on approach: Would impact how we distribute resources and manage potential trade-offs between products