Marketplace finds path to product-market fit in months, not years
Highlights
- By engaging in a comprehensive discovery phase, Rangle and MoveBuddy were able to build a marketplace and innovate on its business model in a matter of months, not years.
- Over the first 30 days, the site had a conversion rate of 12%.
- With the launch of the MVP, MoveBuddy is in a position to gather real user feedback and data to be able to iterate on the platform over time as desired.
About MoveBuddy
As part of the StorageVault group of companies, MoveBuddy is a comprehensive platform for moving and storage solutions.
MoveBuddy started out as a lead generation tool for StorageVault’s main storage business, designed to capitalize on the connection between storage and moving services. However, StorageVault saw an opportunity to use their logistics infrastructure and national coverage to diversify its business and address the full spectrum of pain points around moving.
By addressing several key pain points in the moving experience and leveraging its market share in the storage industry, StorageVault is looking to create new revenue streams and realize the potential of new business models to disrupt this traditional industry.
The challenge
The primary challenge for MoveBuddy was to build an experience that would get them to product-market fit within the context of their new strategy.
The first version of the app was already in the market and had started getting traction with users but it was designed for lead generation. The market feedback was clear, however; people who were moving needed more help than was being offered by any one single player in the market. MoveBuddy decided to pivot to tackle the bigger problems facing those users. This meant creating a marketplace that unified all moving services into one end-to-end solution – from packing through storage to having belongings delivered and settling into their new place.
The goal, now, was to understand how MoveBuddy would attract this new segment (both customers and moving service providers) to the marketplace, help them understand the value proposition and make it as easy as possible for them to use the service.
The Process
Rangle put together a team to lead the following activities:
- Perform Jobs-to-be-Done (JTBD) interviews (The Problem)
- Develop an MVP to test the value proposition (The Solution)
- Test the business model (Viability)
Understanding the Problem
Identifying user problems is essential to finding product-market fit. If you want people to use your product, you need to solve a problem they specifically care about. In marketplaces, you have two users – the demand side and the supply side – making this task all the more challenging.
We interviewed users to pinpoint the problems they face.
To get selection, we needed to solve the supply side’s problems; to get demand, we had to solve convenience problems; and to get both sides to interact and transact efficiently, we needed to ensure trust and safety to lower transaction costs.
After interviewing several users we uncovered three main challenges that suppliers and/or movers faced when moving:
1. Selection: the discovery challenge facing service providers
Without a central marketplace, the challenge for service providers was having to do their own lead generation – to say nothing of conversion. Even if they had their own websites, they didn’t have the capabilities to do much lead generation optimization (e.g. SEO/SEM, CRO, etc.). MoveBuddy gave them the opportunity to be found and the support to close the leads.
2. Convenience: the difficulty of obtaining multiple quotes
Having only one quote gives a potential customer no confidence in what they’re getting or paying for; they need multiple quotes to get a lay of the land. In order to get multiple quotes, however, they would have to endure the tedium and frustration of visiting each mover’s website and filling out practically identical forms for each one. This compounded the pain of what is already an incredibly stressful task, and often led to suboptimal choices.
3. Trust & Safety: the lack of confidence in the moving process
Not only was the experience difficult, but potential customers had little to no confidence in the few quotes they were able to obtain. Users also reported feeling anxious about service providers not showing up at the appointed time, and even holding their property hostage. This was due in no small part to negative media coverage and stories from friends who had bad experiences. Meanwhile, service providers did the work upfront but continuously lived in fear that customers wouldn’t pay. For all parties, until the move was completed, there was a cloud over the whole process.
Developing the Solution
Defining the Value Proposition
Rangle also conducted market research to figure out the unique value proposition piece. In reviewing the competitive landscape, it became clear that MoveBuddy’s baseline offering had to include the discovery and booking of vendors. Rather than merely match the competition, the goal was to innovate the marketplace model. To that end, Rangle and MoveBuddy realized that they would need to solve the broader problem around accessing high-quality supply for one of the more expensive and stressful transactions in an adult life. The approach was to develop a managed marketplace, with MoveBuddy taking on the hard work of actually creating trust.
This would require MoveBuddy to additionally provide a guarantee of service, oversee the delivery, and manage communication between the user and vendor.
Building the Right Experience
Once we had a deep understanding of the major problems facing MoveBuddy’s users, we were able to iterate on a series of designs, focussing on solving these specific customer needs.
In the end, we created high-value impact by improving the discovery experience, streamlining the quote request process, and building trust by facilitating the process from beginning to end.
1. High-touch service to find the right solution
Even more than price, users valued finding the right moving solution for their needs. Having to choose among the available options can be overwhelming at the best of times, let alone during a chaotic move. MoveBuddy solves this problem by providing an experienced MoveBuddy advisor to match users and movers. After submitting their information and creating an account, a user would be contacted by a MoveBuddy advisor, who is available to answer questions throughout the process.
2. Streamlining quote requests to provide clarity around cost
Now a one-stop shop, MoveBuddy provides users with estimated moving costs with minimal effort. A user would simply fill out a short questionnaire providing details such as the moving date, locations, the size and type of home, number of rooms, and storage requirements. Using this information, MoveBuddy then instantly produces estimated quotes for different types of moving and storage solutions, as well as recommended companies. By improving the complex request for quote process, MoveBuddy also reduces time to conversion.
Instantly produced estimated quotes for different types of moving and storage solutions
3. Building trust to provide peace of mind before and on moving day
Pricing transparency and improved communication would go a long way to providing peace of mind, but MoveBuddy takes it one step further by adding a buddyguarantee to demonstrate their commitment to positive moving experiences. MoveBuddy vets and continuously reviews each vendor on the platform to ensure they are performing to the MoveBuddy standard.
Differentiating the Brand
Rangle led workshops and conversations to identify and define the core values of the brand which informed the brand direction. This involved the following:
- Understanding the brand purpose
- Developing a unique brand message and tone of voice
- Communicating the brand values and proposition
- Creating a cohesive style guide to use across all communication channels
MoveBuddy's updated branding
Branding workshop to stand out from the crowd
Building the Business Model
There are several different business models, including commission, subscription, listing fees, freemium and lead generation, etc. You can also mix and match different models. How do you know which one to adopt?
First, you have to determine what kind of marketplace you are in. There are four types of marketplaces: Vertical (high price), vertical (high frequency), horizontal (B2C) and horizontal (B2B). The size and frequency of your transactions determines your marketplace type.
Your marketplace type determines your ideal revenue model.
- For vertical (high frequency) marketplaces, it is the suppliers’ pick; they’re usually dealing with a commodity supply and a high fill ratio. As a result, they can demand a high rake (commission).
- For vertical (high price) marketplaces, the buyer picks. The supply is unique and differentiated and about 60-80% of listings are filled. As a result, lead generation fees or low rake is appropriate. This results in a low rake revenue model.
- For horizontal (B2C) marketplaces, both sides have to commit to transact (double commit). This usually involves complex and custom supply or services.
Based on our analysis, MoveBuddy was a horizontal marketplace with a low rake business model.
The outcome
While still in the early stages of the product's life, the data indicates that there is a clear path to product-market fit. Over the first 30 days, the site managed to have a conversion rate of 12%.
MoveBuddy offers buyers a simplified moving process with the help of a MoveBuddy advisor, guaranteed by MoveBuddy’s commitment to positive moving experiences; it also offers service providers the opportunity to be found and the support to close the leads.
With the launch of the MVP, MoveBuddy is in a position to gather real user feedback and data to be able to iterate on the platform over time as desired.