Should Yoco prioritize expanding our product range or improving existing features?

Introduction

The trade-off we're examining today is whether Yoco should prioritize expanding our product range or improving existing features. This decision is crucial for our growth strategy and resource allocation. I'll analyze this trade-off by considering our business context, user impact, technical feasibility, and resource constraints. Let's start by clarifying some key aspects of the situation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking our current market position might influence this decision. Could you share our market share and how it's trending in our key segments?

Why it matters: Helps determine if growth or consolidation is more critical Expected answer: Moderate market share with steady growth Impact on approach: Would influence whether to focus on new products or existing feature improvements

• Business Context: Based on our revenue model, I assume transaction fees are our primary income source. How does our revenue break down between transaction fees and other sources?

Why it matters: Informs whether new products or feature improvements would have a larger revenue impact Expected answer: 80% transaction fees, 20% other sources Impact on approach: High transaction fee dependence might favor improving existing features

• User Impact: Considering our user base, I'm curious about our customer retention rates. How do they compare to industry benchmarks?

Why it matters: Indicates whether we should focus on acquiring new users or retaining existing ones Expected answer: Slightly below industry average Impact on approach: Lower retention might suggest prioritizing feature improvements

• Technical: Given our current tech stack, how easily could we integrate new products compared to enhancing existing features?

Why it matters: Assesses the technical feasibility and resource requirements for each option Expected answer: Moderate difficulty for both, with slightly easier feature improvements Impact on approach: Would influence timeline and resource allocation decisions

• Resource: Thinking about our team structure, what's our current ratio of product development to maintenance resources?

Why it matters: Determines our capacity for new development versus improving existing products Expected answer: 60% development, 40% maintenance Impact on approach: Higher development capacity might favor new product expansion