product design based on data
TRANSCRIPT
About ingatlan.com
17 years on the marketconnecting 650 000 buyers and sellers each month
450 000 listings, 30 000 of these from private owners
About ingatlan.com
17 years on the marketconnecting 650 000 buyers and sellers each month
450 000 listings, 30 000 of these from private owners
important, because searchers are, where private listings are
In 2014, free listing sites got stronger, and we started to lose private listings to them.
First impression
Free $$$
How to show people that our paid services help them selling property faster and more efficiently?
Our offering back then
Too complicated- 990 HUF monthly per property photo- 20 photos for the price of 6- Highlights- Custom labels- Additional 1 year package
Did not show added value compared to free listing alternatives.
Hypothesis - April, 2014
What people are paying us, depends on how much they are willing to spend on selling their property and not what our services contain.
Let’s find the price people are willing to spend!
If we had only one price what should it be to result the most revenue?
Findings
Willingness to pay differs in counties- Highest in Budapest, high in some counties, low in the rest
We need to simplify our offering- We gave tools, but not the solution- People had to make their own package for themselves
Few customers are paying for extras
We introduced easy to understand package offers
Free planno photos
1-photoplan
5-photoplan
20-photoplan
Priced at the cart value
resulting the most revenue
Different pricing for each segment
In counties, there were only 3 plans, because the free plan included 1 picture.
Results in 4 months
Got new customers because of the free plan for counties
People were not willing to pay for more photos70% of highest paying customers did not upgrade to keep 20 photos, but kept paying the same for 5 pictures
B2C revenue kept the decreasing tendency
What if we change package content: Subscription period instead of photos?
How many months do listings stay active?
New packages differing in subscription period
Free planno photos
7 day trial20 photos
7 day plan20 photos
30 day plan
20 photos
Results in 7 months
Packaging based on time makes sense to people, but they still felt they are paying for photos
B2C revenue stopped decreasing (but did not increase)
Number of private listings did not increase
What we changed
Started educating customers more- Number of pics does not matter- Selling property by themselves is cheaper, but takes effort.- Customers get called by telesales
Increased the value of packages- First time buyers get a “For Sale” sign for free and a coupon for Energy Certificate
Stopped focusing on listings that are hard to make money on- Best selling regions and counties with very low willingness to pay became free or have a small price for a year
Results
B2C revenue started to increase
Number of listings increased
Useful extras are an effective differentiator from free alternatives
Telesales works
Packages should be even easier to understand
Getting our offering right took 3 things
1. PRICE = VALUE2. PACKAGE 3. REACH
Thank youQuestions?
We are hiring: arkon.hu/allasDesign Team Lead, CTO, Linux System Administrator, Senior Data Engineer, Software Tester, Telesales Operator
Laura SzabóHead of Product