MARKETPLACE DESIGN & STRATEGY
The Context: Time to Move
Movebuddy, an initiative of StorageVault Canada, was envisioned as a lead generation tool for StorageVault’s main storage business, designed to capitalize on the connection between storage and moving services, and help take the stress out of moving.
However, the application was poorly designed, had a weak brand, and was a disjointed experience that had no returning users.
It was clear that Movebuddy was neither helping people move nor returning enough value to the company. A new strategy was required.
My Role: Chickens, Eggs, and Ambitious Evolutions
In May 2023, fresh off completing a headless CMS rebuild and redesign for Cubeit.ca (StorageVault Canada's primary revenue generator), I was asked to join Movebuddy, a new product and business initiative designed to "take the stress out of moving", and get it back on track.
A small, cross-functional team of seven people had been working on a new and improved version of Movebuddy for a few months, but things seemed stuck as stakeholders began to grow frustrated with the team's progress. At the same time, the team was confused by the lack of clarity on what a viable MVP looked like.
Features were being built but the overall experience was confusing, and initial impression and usability testing revealed lukewarm reactions.
Launched in Months, Not Years
By engaging in a comprehensive discovery process and MVP mindset, we were able to build a marketplace from scratch, with a new brand, on a new tech stack, and innovate on its business model in just over 6 months.
6x the Average Conversion Rate
Over the first 30 days, the site had a conversion rate of 12% (common benchmark is around 2-5%).
Movebuddy Continues to Grow & Evolve
Digital products are never done. The team was able to take our work and strategy to scale into adjacent service offerings — expanding revenue and business opportunities deeper into the customer journey.
Before
&
After
Movebuddy branding applied to new "above the fold" designs.
Note the new clear call to action, that immediately addresses the core customer need, moving them effectively down the conversion funnel.
The Ask & Outcomes
Create a best-in-class customer experience for Movebuddy, improving customer acquisition, adoption, and retention.
Define and communicate a clear vision for the team and stakeholders to launch a successful marketplace platform that would be a source of new revenue for the company.
Get traction and prove the platform was viable before moving season passed and a key opportunity was lost.
I was excited because I loved launching new products and applying my startup experience (especially challenging in the context of a digital transformation effort like this). I had also been focused on digital marketplace strategy and development for over three years, finding them extremely interesting and complicated.
They are some of the most difficult digital business models to execute because there are at least two customers to focus on. One for the supply (moving companies) and one for the demand (people wanting to move), famously dubbed The Chicken and Egg Problem.
My Initial Assessment
✅ A team of talented people
✅ An open-minded and ambitious executive
✅ A beautiful new brand and visual design
⚠️ Flawed product strategy
⚠️ A collection of disjointed features
⚠️ A business model with limited growth potential
⛔️ No clear solution to a deep demand side pain-point
The rebrand had been completed and the client was excited but the team was struggling to pull the product together. The were mostly trying to reproduce the features of the old application without reconsidering what was possible.
It was clear that the legacy of the old application was blocking and distorting a more ambitious new platform and business model.
Frequency and size of transaction are key determining factors for a horizontal or vertical focused marketplace.
Given the infrequency of moving and the somewhat low cost of transaction (much less than purchasing a home) it was clear that Movebuddy needed to adopt a horizontal service offering supporting people through various stages of their move.
The Problem: Jobs, Pains, & Points of Friction
Primary research in the form of Jobs-To-Be-Done (JTBD) interviews and client workshops and secondary research from the web, podcasts, and forums like Reddit, showed clear patterns of insight on the struggle people encountered when embarking on their moving journey. In fact, we soon learned that trust was a huge issue and moving was seen by many as more stressful than divorce!
In the moving industry, the online experience of even the largest moving companies is extremely poor. The impact of this, at a time when many digital-first customers expect seamless online booking experiences like Airbnb and Uber, is damaging.
Lastly, trust in the moving industry was low, and caused the majority of people to move themselves, even though it was seen as the more stressful option.
A segment of a JTBD-based interview where a recent Movebuddy customer retells their journey, having to coordinate the long distance move of their ailing mother.
The JTBD Four Forces diagram created for the customer interviewed above. It allows for a structured way to identify and map the push and pull of new product adoption.
Validating Assumptions & new Insights
Our research and market assessment had validated some of our assumptions and revealed clear areas of opportunity:
For people needing to move (Demand)
Trust was low in moving companies from a consumer perspective
Moving was an extremely stressful event for the majority of people
The process of finding a mover was complicated and filled with painful friction
For moving companies (Supply)
Moving companies had very little differentiation in services offering very similar features with opaque pricing and hidden fees
56% of moving companies struggle to execute and optimize their marketing and often had poorly designed websites with minimal functionality
Lead-generation was challenging while over 70% were using digital ads to generate leads and keyword competition was low showing a lack of sophistication by most
Customer satisfaction was worsening as the bar for logistic services and communication were being set ever higher by the likes of Amazon and Uber, not the rival moving companies, and 25% of business still relied on word of mouth
With a deep understanding of the major struggles facing Movebuddy’s target customers, we were able to iterate on a series of designs focused on solving three key customer needs
The business MOdel
It became clear that the original promoted listing business model wasn’t going to be lucrative enough. However, the lack of differentiation within specific service categories made a matching marketplace possible, allowing Movebuddy to eventually set pricing and drive market transparency at scale.
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.
This model from Josh Breinlinger has useful in assessing and defining the right approach for marketplace design.
For more, read A Crowded Space: Horizontal vs. Vertical
Horizontal vs. vertical mapping determines the likely commit structure and rake needed to make the business model work.
The Solution: To Begin the Journey Start at the End
The solution required us to not only rethink the features but also the very nature of the application. A bold strategy to create a horizontal matching marketplace was developed based on my experience building marketplace platforms and the dynamics of the moving industry.
The Power of the PRess Release
One of the more interesting and galvanizing exercises we conducted was The Amazon Method: Working Backwards. To define and align on a customer-centric vision for new products or lines of business you begin by writing a press release: simple, ingenious, and fun!
A sample of the pre-product press release to align the team on the new vision and define product features and outcomes.
1. Streamlined Quote Process
Movebuddy simplifies cost estimation and users complete a brief questionnaire, receiving instant quotes for various moving and storage options, along with recommended companies.
2. Support the Extended Journey
Users value finding the right moving solution over price. Movebuddy assigns an advisor (your "Movebuddy"), to help guide customer throughout the moving journey and ensure a smooth experience. While taking the operational burden away from the moving companies.
3. Ensure Peace of Mind
Movebuddy builds trust through pricing transparency, improved communication, and the buddyguarantee. The platform vets and continuously reviews vendors to maintain high standards.
Developing and communicating the buddyguarantee was critical to building trust and driving high conversion.
Simplifying the time to value
We created an extremely streamlined onboarding that significantly reduced the time to value for booking a mover. By implementing a streamlined quote process, users could complete a brief questionnaire and receive instant quotes from various moving companies, along with recommendations.
The platform addressed key pain points such as lack of trust and complicated booking processes. Movebuddy assigned personal advisors to guide customers throughout their moving journey, ensuring a smooth experience while reducing operational burdens for moving companies.
An example of how we mapped the customer journey to align stakeholders and the team on the new vision.
Early prototype of the simplified Movebuddy onboardng UX
The Results: Launching & Learning Toward Five-Star Reviews
Early data suggests strong product-market fit potential for Movebuddy, with a 12% conversion rate in the first month. The platform streamlines moving for people looking to move and moving companies looking to aquire new customers.
In the months since launch, Movebuddy has maintained glowing five-star Google reviews from both customer and moving partners.
Wrapping it up
While this might seem long and exhaustive it really only scratches the surface of all the work and conversations that went into making this a reality.
I'm thankful to all my amazing team members who were instrumental in this projects' success.