Should Zego prioritize adding new features or improving existing ones to boost user retention?

Introduction

The key trade-off we're examining is whether Zego should prioritize adding new features or improving existing ones to boost user retention. This decision is critical for Zego's growth strategy and user satisfaction. I'll analyze this trade-off by considering user needs, business goals, and technical feasibility, ultimately providing a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking Zego might be facing retention challenges. Could you share any recent trends in our user retention rates?

Why it matters: Helps quantify the problem and set benchmarks for improvement Expected answer: Slight decline in retention over the past quarter Impact on approach: Would focus on quick wins in existing features first

• Business Context: Based on our revenue model, I assume improving retention directly impacts our bottom line. How does user retention currently factor into our key business metrics?

Why it matters: Aligns solution with financial goals Expected answer: Retention is a top 3 KPI, directly tied to revenue Impact on approach: Would justify significant resource allocation

• User Impact: Considering our user base, are there specific segments showing lower retention rates?

Why it matters: Helps target improvements to most impacted users Expected answer: New users and occasional users have lower retention Impact on approach: Would focus on onboarding and core feature improvements

• Technical: Regarding our current architecture, how easily can we implement new features versus optimizing existing ones?

Why it matters: Assesses feasibility and resource requirements Expected answer: Existing features easier to modify, new features require more time Impact on approach: Might lean towards improving existing features for quicker impact

• Resource: What's our current team capacity for taking on new feature development versus optimization work?

Why it matters: Determines realistic scope of changes Expected answer: Team at 80% capacity, limited bandwidth for new features Impact on approach: Would suggest phased approach, starting with optimizations