Should Teya prioritize expanding its merchant network for wider acceptance or focus on enhancing user experience within its existing payment app?

Introduction

The key trade-off for Teya lies in expanding its merchant network versus enhancing the user experience within its existing payment app. This decision will significantly impact Teya's growth strategy and market position. I'll analyze this trade-off by examining the current product landscape, potential impacts, and key metrics, then design an experiment to inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Teya is a relatively new player in the digital payments space. Could you give me a quick overview of our current market position and primary competitors?

Why it matters: Helps frame the urgency of expansion vs. improvement Expected answer: Mid-sized player, competing with established firms and fintech startups Impact on approach: Would influence whether we prioritize rapid growth or user retention

• Business Context: Based on our current revenue model, I'm thinking user transaction volume might be our primary driver. Is this correct, or are there other significant revenue streams we should consider?

Why it matters: Aligns solution with core business metrics Expected answer: Transaction fees are primary, with potential secondary streams Impact on approach: Would help balance user experience improvements against network expansion

• User Impact: Looking at our user base, I'm curious about the split between power users and occasional users. Do we have data on usage frequency and transaction sizes?

Why it matters: Identifies which user segments might be most affected by our decision Expected answer: Mix of frequent small transactions and occasional large ones Impact on approach: Could lead to a segmented strategy for different user types

• Technical: Considering our current app architecture, I'm wondering about the complexity of integrating new merchants versus implementing UX improvements. What's our engineering team's assessment?

Why it matters: Determines feasibility and resource requirements for each option Expected answer: Merchant integration is standardized but time-consuming; UX improvements vary in complexity Impact on approach: Would influence timeline and resource allocation for each option

• Resource: Given our current team structure, I'm thinking we might need to prioritize one initiative over the other. Do we have the capacity to pursue both simultaneously, or would we need to choose?

Why it matters: Helps determine if we can take a balanced approach or must focus Expected answer: Limited resources require prioritization Impact on approach: Would shape recommendation towards a phased or focused strategy