Introduction
The trade-off we're considering is swapping the 'People you may know' feature with 'Products you may buy' on our platform. This scenario involves replacing an existing social connection feature with a new e-commerce recommendation feature. My response will analyze the implications, metrics, and decision-making process for this potential change.
Analysis Approach
I'd like to outline my approach to this trade-off analysis and ensure we're aligned on the key areas I'll be covering.
Step 1
Clarifying Questions (3 minutes)
- Why it matters: Understanding the revenue model helps prioritize the potential impact of this change.
- Hypothetical answer: Let's assume it's primarily ad-based with a growing e-commerce component.
- Impact: This suggests we need to balance user engagement (for ad revenue) with direct product sales.
- Why it matters: This helps quantify the potential disruption to user behavior.
- Hypothetical answer: Let's say 30% of users interact with it monthly.
- Impact: We need to consider how to maintain or improve engagement for this significant user segment.
- Why it matters: This affects the technical feasibility and timeline of the swap.
- Hypothetical answer: Yes, we have a basic recommendation engine for our e-commerce section.
- Impact: We can potentially repurpose this technology, speeding up implementation.
- Why it matters: This provides a baseline for potential performance of the new feature.
- Hypothetical answer: Let's assume a 2% click-through rate and 0.5% purchase rate.
- Impact: These metrics will be crucial benchmarks for evaluating the success of the new feature.
- Why it matters: Understanding the broader context helps align our decision-making with company goals.
- Hypothetical answer: The company aims to increase e-commerce revenue by 30% this year.
- Impact: This suggests we should prioritize metrics related to product discovery and purchases.
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