Should Stytch prioritize expanding its passwordless authentication options or focus on enhancing its existing Multi-Factor Authentication (MFA) features?

Introduction

The trade-off we're examining today is whether Stytch should prioritize expanding its passwordless authentication options or focus on enhancing its existing Multi-Factor Authentication (MFA) features. This decision is crucial for Stytch's product strategy and market positioning in the authentication space. I'll analyze this trade-off by considering user needs, market trends, technical feasibility, and business impact. Let's dive into the key aspects of this scenario and outline our approach.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about Stytch's current market position. Could you share more about our market share in passwordless vs. MFA solutions?

Why it matters: Helps understand where we have the strongest foothold and growth potential. Expected answer: Stronger in one area, with growth opportunities in both. Impact on approach: Would influence where to allocate resources for maximum impact.

• Business Context: Based on our revenue model, I assume we charge per authentication. Is this correct, and are there any differences in pricing between passwordless and MFA?

Why it matters: Affects the financial implications of our decision. Expected answer: Confirmation of pricing model with potential variations. Impact on approach: Would help prioritize based on revenue potential.

• User Impact: I'm curious about our user adoption rates. What percentage of our customers are actively using passwordless vs. MFA solutions?

Why it matters: Indicates user preferences and potential resistance to change. Expected answer: Breakdown of user adoption for each solution. Impact on approach: Would guide our focus on user education or feature enhancement.

• Technical: Regarding our current architecture, how modular is our system for adding new authentication methods?

Why it matters: Determines the feasibility and resource requirements for expansion. Expected answer: Assessment of system flexibility and potential technical debt. Impact on approach: Would influence the timeline and resource allocation for development.

• Resource: Can you give me an idea of our current team structure and capacity? Are we staffed more heavily in passwordless or MFA development?

Why it matters: Helps understand our ability to execute on either option. Expected answer: Overview of team composition and available resources. Impact on approach: Would affect the feasibility and timeline of our strategy.