A brief story of AirBnB success.
Image Source: BBC.com
Airbnb – is a famous example of the “marketplace” e-business model that grew fast. A brief story of speedy success.
Note! Airbnb’s business model considers 2 types of customers Host and Guests.
1) «The power of visual media»
Create need – attract interest – support trust
- ✓People asked
- ✓Feedback
- ✓Personal check
Challenge 1 – Photos from Hosts
Solution? Send emails to teach photography? — NO
- ✓Make photos for users (rented camera)
- ✓Next, Airbnb photography program 2010 – by 2012 2.000 freelancer photographers
2) Security
- ✓Low legal regulations in the online environment
Challenge 2 – People have fear staying in a foreigner’s place
Solution?
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- ✓Photographers verify addresses.
- ✓Social Connections / connect Facebook/ friends review
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3) Engagement
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- ✓«Wish-list» – safe properties
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AirBnB “Wish List”
Challenge 3 – Is it optimized for maximum engagement?
Solution?
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- ✓Experimentation for the Optimisation ( Whish list “star” > or “heart”?)
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4) Early Controversy
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- ✓Who is guilty of robbers?
- ✓ Who is guilty of unethical behavior?
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5) Blame Game or False Security
- ✓Complaints are not stopping attracting more unsatisfied blog-posts
Challenge 5 – The power of WOM
Image Source: Twitter
Solution?
- ✓Brian Chesky (CEO of CEO of Airbnb, Inc.) issued an unconditional apology
- ✓Updated guarantee for any damage ($1 million Host Guarantee)
Was AirBnb, Inc. guilty? – not important. He demonstrated a … Commitment to TRUST