Should Wise prioritize expanding to new markets or improving existing services?

Introduction

The trade-off question at hand is whether Wise should prioritize expanding to new markets or improving existing services. This decision is crucial for Wise's growth strategy and resource allocation. I'll analyze this trade-off by examining the current market position, potential growth opportunities, and the impact on user experience and business metrics.

Step 1

Clarifying Questions (3 minutes)

• What's Wise's current market share in existing markets?

• Why it matters: Understanding market saturation helps determine growth potential.
• Hypothetical answer: 30% market share in primary markets.
• Impact: Lower market share might favor improving existing services to capture more users.

• What's the revenue split between existing and new markets?

• Why it matters: Indicates potential for growth and current revenue streams.
• Hypothetical answer: 80% from existing markets, 20% from recent expansions.
• Impact: High reliance on existing markets might suggest focusing on service improvements.

• What's the customer acquisition cost (CAC) in new markets vs. existing ones?

• Why it matters: Affects profitability and expansion strategy.
• Hypothetical answer: CAC is 3x higher in new markets.
• Impact: Higher CAC in new markets might favor improving existing services for better ROI.

• What's the current Net Promoter Score (NPS) for existing services?

• Why it matters: Indicates customer satisfaction and potential for organic growth.
• Hypothetical answer: NPS of 40, which is good but has room for improvement.
• Impact: A moderate NPS might suggest focusing on improving existing services to boost loyalty.

• What's the timeline for achieving significant market penetration in new markets?

• Why it matters: Helps balance short-term gains with long-term growth.
• Hypothetical answer: 2-3 years to achieve 10% market share in new markets.
• Impact: A longer timeline might favor improving existing services for immediate gains.