How one word can improve your business performance and lift
- sales by 10%
- conversions by 50%
- customer acquisition by 48%
The word is –free.
Regardless of the business model – B2B, B2C, DTC – free is the most powerful word for growth.
Science says –
- A hotel room for $660 with “free” water is valued more highly than a hotel room worth $650 and $10 of water.
Amazon’s free shipping initiative was a significant growth changer.
Still today, free shipping drives a large proportion of Amazon’s revenue:
- it’s the second most important reason why people subscribe to Prime,
- it can lift the average order value by as much as 90% as buyers reach the free shipping threshold,
Free – is a cost of acquisition – a vital role. Retailers often have loss leaders to drive traffic – online service businesses focus on what is possible for – free.
Take the case of Tawkify, a US-based high-end matchmaking service with service pricing ranging from $4000 to $70,000 per client.
Their niche > Human-led matchmaking – when Tinder and other platforms provide quantity, often with little quality – human-assisted matchmaking – plays a vital role for those with cash and a burning desire for love.
- Free is an essential part of their buyer funnel – Free Screening (by a specialist human),
- Next, a low-price $99/year offer – part of a passive dating pool.
- Full concierge clients pay up to $70,000 for tailored, active assisted search and coaching packages that guarantee a certain number of matches.
Does it work?
- It saves clients time and energy,
- Protects their privacy and safety,
- It helps to date productively (no time wasters) – with hand-selected matches, personalised date introductions, ongoing coaching,
- With over 1 million singles in their network,
- With 10+ years in business and
- With a record of 150k+ intense matches,
- Along with 200,000 + visitors to the site each month.
Segment and Differentiation
High-income, older millennials who are time-poor and living in large cities are their primary market.
The business differentiation – their uniqueness is – their success lies in the human component. Often referred to as High Touch – white-glove concierge – assistance at each step.
While AI generates an initial broad pool of matches, the process is managed by a personal matchmaker — based on values, personality, and relationship alignment.
This business model is not unique to Tawkify – personal banking, professional services, executive and board recruitment and other high-cost products and services all have a higher human component.
How the business model works
- Highly private. No information sharing without a client’s permission. First dates are blind – based on all of the research.
- Network matchmakers. In-house strategy sessions – where suitable matches to find the best fit. Strategies and success stories are discussed at weekly brainstorming meetings.
- Human-touch heavy. Matches are sourced not only from the Tawkify database but also from matchmakers’ networks. They spend their days trawling virtual platforms and physical locations for available singles 80% of concierge clients find relationship success within their first 12 matches.
- LinkedIn, hiking groups, gym classes, and even other dating apps. One matchmaker describes how she uses her Tinder profile, but swipes based on her clients’ preferences, before meeting potentials in person.
There are always opportunities to improve businesses or start a competitor business.
More Opportunities
- Geography – Tawkify does not want to expand outside the USA – leaving startups to model their business in other countries.
- Widen the net. Widen the dating pool with international members.
- Niche down. Younger generations have vastly different dating needs. As younger generations age, there will likely be demand for niche matchmaking platforms that cater to their needs. Also, older generations are looking for their next partner.
State of the market
Mindtickle (A Sales Readiness Platform for missed quotas) recently surveyed 500+ revenue and enablement leaders to understand how they are structuring their programs for the year ahead.
Here are a few things they learned:
- Less than 40% of sellers achieved 75% or more of their sales budgets last year,
- 32% of respondents report their businesses to have 10+ technology tools to support their sales team,
- 53% of respondents have an enablement budget of more than $100k
Are you?
- What are your business’s growth opportunities – Can Free be deployed more strategically?
- Is there a pyramid of offers – rising to high-pricing, exclusive and high profit?
- Is your business actively looking to start or develop a merger and acquisition approach to drive growth?
Regards
David
