Introduction
The trade-off we're examining today is whether iKhokha should invest in developing a loyalty program to increase customer retention or allocate resources to expanding our payment processing capabilities. This decision is crucial for our growth strategy and customer satisfaction. I'll analyze both options, considering their impact on our business goals, user experience, and technical feasibility.
I'd like to start by asking a few clarifying questions to ensure we're aligned on the key aspects of this trade-off. Then, I'll walk you through my analysis framework, covering product understanding, hypothesis formation, metrics identification, experiment design, and ultimately, a recommendation with next steps.
Step 1
Clarifying Questions (3 minutes)
Why it matters: Helps quantify the potential impact of a loyalty program Expected answer: Churn rate is slightly above industry average Impact on approach: Higher churn would prioritize the loyalty program option
Why it matters: Determines the urgency of expanding payment processing Expected answer: Operating at 70-80% capacity Impact on approach: Near-capacity operation would favor expanding processing capabilities
Why it matters: Helps tailor the loyalty program design if chosen Expected answer: Mix of high-volume merchants and smaller businesses Impact on approach: Would influence loyalty program structure and rewards
Why it matters: Identifies areas where we can further strengthen our position Expected answer: Competitive pricing and local market expertise Impact on approach: Could inform which option better enhances our competitive edge
Why it matters: Aligns the decision with broader company goals Expected answer: Focus on existing markets with potential new market entry in 18-24 months Impact on approach: Could influence the priority of processing capabilities vs. customer retention
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