Should RTB House prioritize expanding its product catalog coverage or improving the accuracy of its existing product recommendations?

Introduction

The trade-off between expanding RTB House's product catalog coverage and improving the accuracy of existing product recommendations is a critical decision that could significantly impact our business trajectory. This scenario touches on the core of our value proposition and our ability to serve our clients effectively. I'll approach this analysis by examining the business context, user impact, technical considerations, and resource implications to arrive at a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Business Context: I'm thinking our revenue model might be based on performance metrics like click-through rates or conversions. Could you confirm how we monetize our recommendations, and how this aligns with our current strategic priorities?

Why it matters: Helps determine which option more directly impacts our bottom line. Expected answer: Revenue is tied to conversion rates, and improving accuracy is a top priority. Impact on approach: Would lean towards improving accuracy if it directly correlates with revenue.

• User Impact: Based on the nature of our product, I assume we serve both e-commerce platforms and end consumers. Can you clarify which user segments would be most affected by either expanding catalog coverage or improving recommendation accuracy?

Why it matters: Identifies whose experience we're optimizing for. Expected answer: Both options affect end consumers, but expanding coverage might benefit niche product sellers more. Impact on approach: Would consider balancing improvements to serve both broad and niche markets.

• Technical Feasibility: I'm curious about our current technical capabilities. What's our current accuracy rate for recommendations, and how much of the potential product catalog are we currently covering?

Why it matters: Helps assess the potential gains from each option. Expected answer: Current accuracy is around 70%, with 60% catalog coverage. Impact on approach: Would focus on the option with more room for improvement.

• Resource Allocation: Considering both options likely require significant resources, can you give me an idea of our current team capacity and budget constraints?

Why it matters: Determines the feasibility of pursuing either or both options simultaneously. Expected answer: Limited resources, need to prioritize one option. Impact on approach: Would need to make a clear choice rather than trying to do both.

• Timeline and Urgency: Are there any upcoming market events or client demands that might influence the urgency of either expanding coverage or improving accuracy?

Why it matters: Helps prioritize short-term vs. long-term gains. Expected answer: Major e-commerce event in Q4 increasing demand for accurate recommendations. Impact on approach: Might prioritize accuracy improvements to capitalize on the upcoming opportunity.