How I Used my Product Skills to Increase Revenue from a Side Project

www.mobilespoon.net mobilespoon.net3 years ago in #UX Love217

Trust plays a critical role when purchasing products online, but trusting the brand is not enough when booking a vacation or even ordering a massage at home, as the supplier in these cases is not the brand itself. 93% of consumers use online reviews to support their purchasing decisions; they seek for reassurance, a social proof that the product or service they plan to order is indeed the quality they expect it to be. Rating and review systems are expected to be accurate because they are based on high volumes, however, as we learned over the years of operating our marketplace for beauty and lifestyle services – this is not always the case. The problem When we started Missbeez, we knew we were dealing with a sensitive business.Haircuts, makeups, massages, even nail treatments – those are all personal treatments, and therefore our customers were concerned about who’s coming over, their work quality and their experience. The more expensive or personal a product is – the more sensitive users become to the quality question. To address these concerns, we designed a great business card for every service provider that included a personal photo, a few portfolio photos, details about the years of experience, expertise, ratings, reviews and more.The app provided all of this information and in addition, encouraged customers to rate their experience and leave a review at the end of the treatment. Take 01: The Ratings are too high  Over time we started seeing anomalies between the ratings and the actual quality of our service providers. We knew our service providers were very professional because we had a very strict onboarding process, but the scores were just overwhelmingly high (like 4.99 out of 5) and we barely had negative reviews or low ratings.We did, however, receive enough complaints to conclude that our rating system doesn’t highlight the underperforming service providers. In a few extreme cases, we even saw customers who rated the service as 5 stars and then black-listed the service providers… There was no correlation between underperforming service providers and their ratings or reviews. Here’s what we found: 41% of our customers rated their treatments (For Uber it’s ±70% of users, in Fiverr it’s ±65%, based on forums). Only 15% wrote a review (Amazon sellers mention 10% as their benchmark).  97% of the ratings were 5 stars (the highest possible). Only 2% of the ratings were negative (below 3 stars) That means that 1% of all users reported: “bad service”  Now, you may look at those figures and think: “what a perfect business they’re in!” but going back to the sensitivity level of our services, compiled with the number of complaints we got through our intercom live chat, our retention rates,  and our other KPIs – we just knew those numbers couldn’t represent the real quality of the supply side. Our rating system was not reliable. Take 02: Understanding why this is happening Through customer interviews and frequent product iterations we came up with 3 main reasons: 1. The majority of customers is silent. These users mean the the world for the business, but they never communicate with it: they don’t leave reviews, they don’t provide feedback, and instead – they just act. If they are unhappy with the product they’ll just stop using it without saying anything. Poof… gone. 2. Complaining about someone publicly is usually an unpleasant act. In our case, it’s even harder: many of our service providers belong to a relatively low socioeconomic status: they work hard, travel from one customer to another carrying around their equipment, working hard to grow their business. Now you show me a customer who feels comfortable leaving a bad…

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