Should Zillow go from product company to digital.pptx
?Download as PPTX, PDF?
0 likes?5 views
Zillow is considering transitioning from a product company to a digital platform. This is in response to circumstances threatening its market position, including: 1) Partners have lower profits and seek new tools as digital spending replaces physical real estate transactions. 2) Competitors like iBuyers in Phoenix make up 20% of home sales and are growing quicker than Zillow. 3) Customer expectations are higher and partners' satisfaction with Zillow is lower than competitors, evidenced by negative NPS scores. Transitioning to a platform model could turn competitors into partners, increase customer satisfaction, and monetize added value.
Should Zillow go from product company to digital.pptx
- 1. Zillow Buyer Seller Realtor(partner) Peter Raza Xiaoyu Revenue split 1) 33% - Real estate leads 2) 66% - iBuying (direct buy-sell) iBuying Leads
- 2. Should Zillow consider going from product company to digital platform?
- 3. Agenda 1. Circumstances we see 2. What trends they represent 3. Evidence of their impact 4. We can achieve in our response
- 4. Our market position is under threat ? Digital is not the same: people spend all day virtually ? Our partners have lower profits, seeking new tools to win clients ? New competitors: in Phoenix, 20% of all sales are iBuying. Trends in customer experience and partner ecosystem Circumstances we see
- 5. Why matter ? COVID disrupted real estate market ? Growing competitor pressure ? Zillow becomes more susceptible to market risks ? Higher customer expectations ? Higher demands by partners ? Competitors grow quicker than we do ? Leverage makes our business model riskier What trends they represent
- 6. Why matter ? COVID disrupted real estate market ? Growing competitor pressure ? Zillow becomes more susceptible to market risks ? NPS of customers<0 ? NPS of our parters is twice than competitor¡¯s ? Redfin and Opendoor double their iBuying every year (we paused it during COVID) ? High leverage of iBuying is driving our beta from 1.5 to 2 Evidence of their impact
- 7. A solution is to become a digital platform that would bring our competitors to our site ? Provide match for our partners with visitors to our site ? Create a process-driven customer journey ? Provide third-party application to enhance customer experience ? Turn our competitors into our partners ? Increase customer satisfaction ? Monetizing value added as do Google and Salesforce We can achieve in our response