ENTR

How would you prioritize building for power users vs. new users?

Model answer

Model answerThis is a strategic choice, not just a prioritization exercise. Power users drive revenue and word-of-mouth but are a small segment. New users drive growth but have high churn. The answer depends on your stage: early-stage should obsess over power users. Growth-stage needs to fix the new user experience or growth becomes a leaky bucket. I'd look at our retention curve: if week-1 retention is below 25%, new user experience is the priority, full stop.

Framework · Retention Analysis

  1. RRetention benchmark
    Week-1 retention under 25%? New users. Over 40%? Power users have more upside
  2. SStage of company
    Early: depth for power users. Growth: breadth for new users
  3. VValue concentration
    What % of revenue comes from power users? If >60%, don't neglect them
  4. BBoth is valid
    Different squads can work in parallel — this isn't always either/or

Related questions

Strategy & Prioritization

Case studies in this category

Practice this category