Should Skillshare prioritize creating more beginner-level courses to attract new users or advanced courses to retain existing subscribers?

Introduction

The trade-off Skillshare faces is whether to prioritize creating more beginner-level courses to attract new users or advanced courses to retain existing subscribers. This scenario involves balancing user acquisition with retention, a common challenge for subscription-based platforms. I'll analyze this trade-off by examining the product ecosystem, potential impacts, and key metrics, then design an experiment to inform our decision.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about Skillshare's current user base and growth trajectory. Could you share some insights on our user acquisition and churn rates over the past year?

Why it matters: Helps understand the urgency of attracting new users vs. retaining existing ones. Expected answer: Moderate growth in new users, but increasing churn among long-term subscribers. Impact on approach: Would influence the balance between beginner and advanced content strategies.

• Business Context: Based on our revenue model, I assume most of our income comes from subscriptions. How significant is the revenue from other sources, like corporate partnerships or content licensing?

Why it matters: Affects the potential impact of focusing on different user segments. Expected answer: Subscriptions account for 80% of revenue, with growing interest in B2B offerings. Impact on approach: Might suggest exploring advanced courses that appeal to both individuals and businesses.

• User Impact: I'm curious about our user engagement patterns. What's the typical learning journey of a Skillshare user from beginner to advanced?

Why it matters: Helps identify potential drop-off points and opportunities for user progression. Expected answer: Users often start with 2-3 beginner courses, but engagement drops after 6 months. Impact on approach: Could indicate a need for better intermediate content to bridge the gap.

• Technical: Considering our current platform capabilities, how easily can we personalize course recommendations based on user skill levels?

Why it matters: Influences our ability to serve the right content to the right users. Expected answer: Basic personalization exists, but there's room for improvement. Impact on approach: Might suggest investing in recommendation algorithms alongside content creation.

• Resource: What's our current split of resources between course creation, platform development, and marketing?

Why it matters: Helps understand our capacity to execute on different strategies. Expected answer: 50% platform, 30% marketing, 20% content creation. Impact on approach: Could indicate a need to reallocate resources for a content-focused strategy.