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고객 성공과 벨류 모먼트를 우선적으로 정의 후 유료 플랜 경험 재구성
March 2024
CarePartner, a B2B2C service, connects the elderly in need of care with local caregivers.
Care center managers upload senior information to find caregivers. After interviewing at 30 customer care centers, we discovered that center managers commonly face difficulties in reaching potential caregivers. Since we have grown our local caregiver base to 100,000, we can launch a premium job posting plan called '동네광고' or 'Neighborhood Ad'. With one click, managers can advertise their jobs by sending messages to nearby caregivers within a 3km radius. 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 repeatedly this feature for their next job posting. However, just 8% of job postings turned to paid plans. It is a big problem that even if there’s high payment retention, not many potential customers converted to paid plans.
PROBLEM
Care center managers could not recognize the immediate value.
Uncertainty and budget limitations.
Customers couldn't immediately understand the value of the paid plan, which allows for sending job ads to all local caregivers at once. Also, uncertainty leads to lower plan conversion rates. In South Korea, government-funded elderly care centers can only spend less than 15% of their income on marketing. With an average monthly income of 20,000,000 KRW, spending 50,000 KRW on each job posting feels costly. Because of this, they hesitate to invest in new platforms 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.
Previously, like the flowchart below, advertising messages are sent to caregivers only when customers’ job postings are converted to the paid plan. In other words, even after switching to a paid plan, the potential customer had to wait until they received a caregiver response to experience the value moment.
To reduce the time-to-value, I changed the time for sending Neighborhood Ads messages. Before, ad messages were sent to caregivers only when the job posting switched to the paid plan. But now ad messages are sent to local caregivers immediately after the job posting is uploaded regardless of the posting’s plan.
We asked new customers to consider the paid plan if they want to reply to local caregivers who apply through the Neighborhood Ads messages. Typically, within 24 hours of a job being posted, 82% of customers receive replies from local caregivers with the information of the caregiver who applied.
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”.
Also, the entry points to Neighborhood Ad have been updated. Previously, the customer could access the Neighborhood Ad from the 'jobs' detail page. However, 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.
Finally, a post-payment model has been chosen to reduce the barrier to entry of new customers. This model lets customers try out the paid plan and see its values before they pay. So, customers only pay when they make a hire through Neighborhood Ads. This new model also improves the experience for our existing customers. In the past, customers had to pay even if they didn't hire a caregiver, but not anymore.
In a nutshell, 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 6x. The rate grew 3x from Feb 26 to Mar 17, the time when we updated the Neighborhood Ad and customer conversion message sending time. This shows that the value-first approach by reducing the time-to-value makes new customers more attracted to the paid plan.
The retention rate also increased by 12%, from 70% to 82%. The post-payment model encouraged customers to continue using the paid plan. Since customers only pay when they hire caregivers through Neighborhood Ad, they can continuously experience the value of the paid plans without having to approve payment each time. This ultimately enhances customer retention rates and helps foster loyalty to the product.
Lastly, weekly job postings increased by 31%. Within the care center community, the Neighborhood Ad became well-known as a platform where job posts are automatically advertised to local caregivers. As a result, they actively posted their jobs there.