Product design based on data

ingatlan.comProduct design and pricing based on

data

Laura SzabóHead of Product

[email protected]

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

[email protected]