March 2024
The CarePartner is a B2B2C service that connects the elderly in need of care with local caregivers.
After interviewing Royal customers, we discovered that they commonly have difficulties reaching potential caregivers. From that pain points, we launch a premium job posting plan called ‘동네광고’ or ‘Neighborhood Ad’. With one click, the manager can advertise their jobs by sending messages to nearby caregivers. Like the screenshots, it also enables retargeting caregivers and sending messages to those who have shown interest but haven’t been contacted yet.
High payment retention, low conversion to paid plan
About 70% of users of this plan purchased this feature repeatedly for their subsequent job postings. However, only 8% of job postings transitioned to paid plans. Even with high payment retention, only a small portion of potential customers convert to the paid plan.
PROBLEM
Care center managers could not recognize the immediate value.
Uncertainty and budget limitations.
There were two major problems. First, customers couldn’t immediately understand the value of sending job ads to all local caregivers. Second, uncertainty and budget limitations led to a lower plan conversion rate. With a monthly income of 20 million Korean Won, spending 50 thousand won on each job posting feels costly. They hesitate to invest until they see direct hiring results.
First, I tried to define customer success by taking a value-first approach to solutions.
CUSTOMER SUCCESS
Care center hires ASAP by receiving an immediate application from local caregivers without effort.
Care centers post jobs for hiring local caregivers. However, care centers often find it hard to hire because they don’t have a local caregivers' database. Even if they do, they spend a lot of time calling caregivers directly. What they need is to get local caregivers to apply before they have to contact them personally.
THE VALUE MOMONET
Customers receive messages from applicants before they contact them personally.
In the interview with customers who consistently used the paid plan, I can identify the value moment —and when it's delivered. They saw the plan's value when they started getting responses from caregivers to their Neighborhood Ads messages, even if they were just inquiries.
SOLUTION 01
Improve conversion rate to a paid plan by reducing the time-to-value.
Once I’ve identified the value moment, I figured out how long it takes to reach it and tried to eliminate the things standing in the way.
Like the flowchart, previously, advertising messages are sent to caregivers only when customers' job postings are converted to the paid plan. This means they must wait to experience the value until they receive a response from the caregiver.
To reduce the time-to-value, I changed Neighborhood Ads messages to be sent immediately when a job is posted, regardless of the posting's plan. And then asked customers to switch to the premium plan if they want to respond to local caregivers who apply through the Neighborhood Ads. Within 24 hours of a job being posted, 82% of customers receive local caregiver’ applicant replies.
As shown below, the conversion messages for the paid plan differ from the previous ones. The key-hooked message was “sending ad messages to caregivers nearby at once”. At that time, I thought sending messages to caregivers without a local caregiver database was a valuable moment. However, after redefining the value moment, the key-hooked message changed to “ Someone just applied to your job posting by Neighborhood Ad, review and contact +20 applicants right now”.
The entry points to Neighborhood Ad have been updated. Previously, the customer could access the Neighborhood Ad from the jobs detail page. Considering the customer journey and mental model, I decided the candidates page is more accessible. In the information architecture of the paid plan, I prioritized applicant information over job posting information. This is because Neighborhood Ad messages only become valuable when caregivers respond.
SOLUTION 02
Improve conversion rate to a paid plan by reducing the barrier to entry.
Lastly, to reduce the barrier of customers’ uncertainty and budget limitations, I chose the post-payment model. The customer only pays when they make a hire through Neighborhood Ads. This lets potential customers try out the premium plan and see its value before they pay.
The table below shows five major updates to the paid plan. These changes aim to increase the conversion rate of the paid plan, following a ‘value-first’ approach.
AS-IS
TO-BE
When a job posting switched to the paid plan
When a job posting is uploaded.
When customers upload a job posting.
When caregivers applied to a job posting through Neighborhood Ad.
“sending ad messages to caregivers nearby at once”
“Someone just applied to your job posting by Neighborhood Ad.
Review and contact applicants right now”.
Job Posting Detail Page
Applicants List Page
Pay before switch plan.
Pay after hire caregivers.
Conversion rate
49.2%
Total 70 of 142
8%
12%
13%
26%
38%
41%
Feb 12 - Feb 18
Feb 19 - Feb 25
Feb 26 - Mar 3
Mar 4 - Mar 10
Mar 11 - Mar 17
Mar 18 - Mar 24
Mar 25 - Mar 31
Retention rate
+12%
70%
82%
Feb 12 - Feb 18
Mar 25 - Mar 31
Weekly job posting
+31%
108
142
Feb 12 - Feb 18
Mar 25 - Mar 31
SUMMARY
The conversion rate grew by 512%, from 8% to 49%, during the 7 weeks.
The retention rate increased by 12%, from 70% to 82%, during the 7 weeks.
The weekly job posting grew by 31%, from 108 to 142, during the 7 weeks.
During the 7 weeks, the conversion rate of the paid plan increased 6 times. The rate grew 3 times from Feb 26 to Mar 17, the time when we changed customer conversion message sending time.
The retention rate also increased by 12%, from 70% to 82%. The post-payment model encouraged customers to continue using the paid plan. This ultimately enhanced customers’ service royalties.
Lastly, weekly job postings increased by 31% because, within the care center community, the CarePartner became well-known as a platform where job posts are automatically advertised to local caregivers.