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Product design based on data

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How we do data-driven product design and pricing?
What do you do, when your competitor offers something similar for free? Case study about challenges in designing ingatlan.com’s B2C service.

Product Meetup Budapest - June 2015.

Published in: Real Estate
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Product design based on data

  1. 1. ingatlan.com Product design and pricing based on data Laura Szabó Head of Product szabo.laura@arkon.hu
  2. 2. About ingatlan.com 17 years on the market connecting 650 000 buyers and sellers each month 450 000 listings, 30 000 of these from private owners
  3. 3. About ingatlan.com 17 years on the market connecting 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
  4. 4. In 2014, free listing sites got stronger, and we started to lose private listings to them.
  5. 5. First impression Free $$$
  6. 6. How to show people that our paid services help them selling property faster and more efficiently?
  7. 7. 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.
  8. 8. 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.
  9. 9. Let’s find the price people are willing to spend!
  10. 10. If we had only one price what should it be to result the most revenue?
  11. 11. 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
  12. 12. We introduced easy to understand package offers Free plan no photos 1-photo plan 5-photo plan 20-photo plan 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.
  13. 13. Results in 4 months Got new customers because of the free plan for counties People were not willing to pay for more photos 70% 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
  14. 14. What if we change package content: Subscription period instead of photos? How many months do listings stay active?
  15. 15. New packages differing in subscription period Free plan no photos 7 day trial 20 photos 7 day plan 20 photos 30 day plan 20 photos
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. Getting our offering right took 3 things 1. PRICE = VALUE 2. PACKAGE 3. REACH
  20. 20. Thank you Questions? We are hiring: arkon.hu/allas Design Team Lead, CTO, Linux System Administrator, Senior Data Engineer, Software Tester, Telesales Operator Laura Szabó Head of Product szabo.laura@arkon.hu

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