Should Ozow prioritize expanding our merchant network or improving the user experience for existing customers?

Introduction

The key trade-off we're examining is whether Ozow should prioritize expanding our merchant network or improving the user experience for existing customers. This decision is critical for Ozow's growth strategy and market position. I'll analyze this trade-off by considering business objectives, user impact, technical feasibility, and resource allocation.

Step 1

Clarifying Questions (3 minutes)

• Business Context: I'm thinking Ozow's current revenue model might heavily influence this decision. Could you share how our revenue is split between transaction fees from merchants versus user subscriptions or other sources?

Why it matters: Helps determine if expanding merchants or improving UX will have a more direct impact on revenue. Expected answer: Majority revenue from merchant transaction fees. Impact on approach: Would lean towards merchant expansion if true.

• User Impact: Based on our user data, I'm assuming we have a core group of power users. What percentage of our transactions come from repeat users versus new users?

Why it matters: Indicates whether improving UX for existing users or attracting new users through more merchants is more critical. Expected answer: 60-70% from repeat users. Impact on approach: High repeat user percentage would favor UX improvements.

• Technical Feasibility: Considering our current architecture, I'm guessing that expanding the merchant network might require significant backend changes. How scalable is our current system for onboarding new merchants?

Why it matters: Determines the technical effort required for merchant expansion. Expected answer: Moderate scalability, some upgrades needed. Impact on approach: High technical barriers would favor UX improvements in the short term.

• Resource Allocation: Given our current team structure, I'm thinking we might have more UX designers than business development roles. What's our current ratio of UX/product team members to those focused on merchant acquisition?

Why it matters: Indicates our current capacity for each option. Expected answer: More UX/product team members than merchant acquisition. Impact on approach: Would influence short-term feasibility of each option.

• Timeline Pressure: Considering market dynamics, I'm wondering if there's any urgent competitive pressure pushing us towards one option. Are there any upcoming market events or competitor moves that we need to respond to quickly?

Why it matters: Helps prioritize short-term versus long-term strategy. Expected answer: Increasing competition in merchant services. Impact on approach: Urgent competitive pressure might favor faster merchant expansion.