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Value Proposition
AnswerDash’s value proposition includes, reducing customer support costs, increasing
sales, and increasing customer retention. This all can be possible by improving customer
satisfaction through simplifying processes for the consumer and providing online help desks.
Positioning Statement
The type of positioning statement that I would construct would include AnswerDash to state that
their customers included, by not limited to, any company that has a website or e-commerce site.
Every single business eventually need some form or method of answer potential and returning
customers’ questions. AnswerDash provides a method as this—it is simple and answers
questions on the spot for quick satisfaction. An example positioning statement could look
something like:
AnswerDash provides an easy and satisfying customer service solution for companies
that would like to improve their consumer’s online experience by supplying answers and
information at the user’s convenience.
Consumers are buying a customer service product. The service is an experience that will
answer their questions and in return will ultimately increase customer retention. Consumers want
to find information quickly, sufficiently, and want specific questions answered.
There are many reasons to believe in this service. One of those reasons are, AnswerDash
gives companies a competitive advantage by creating an enjoyable and quick satisfying shopping
experience for the consumer and ensures that consumers will have a positive customer service
experience. Companies will spend less time and money because they do not have to train or hire
any other employees that work in customer service departments.
2. When considering the position statement, it seemed liked there really needed to be two
different options since there was really two main segments it was used in. The first is for
businesses with ecommerce sites. The second is for businesses trying to reduce costs in
customer support.
For businesses with ecommerce sites AnswerDash is the best way to maximize profits
among self-service support systems because they are able to answer inquiries instantly,
reducing shopping cart abandonment substantially.
For businesses with customer care AnswerDash is the way to reduce time and money
spent among customer service teams because they can answer almost all of customers
questions from a single dashboard tab.
3. After analyzing all three of the go-to-market options I think AnswerDash’s best opportunity for
success lies in going vertical. Option three is the best option because targeting their most
profitable segments, SaaS companies and ecommerce companies, will allow them to dial in their
efforts. Right now, AnswerDash has spread themselves too thin by going after every industry.
Because they have spent so much time chasing every potential business opportunity, it has
caused their customer acquisition cost to rise to $1,500. This is unsustainable. The two areas
previously mentioned are the by far most effective use of AnswerDash, therefore, this is where
clients will find the most value. Similar to the experience the VP of Marketing for Ben Bridge
Jeweler had, companies will see what AnswerDash can do and they will have no problem paying
the monthly fee. This in turn will decrease the customer acquisition cost and increase profits.
customers can easily find answers without looking for extra help.
Product: It is a simple product that any customer would use without any programming
experience. The company provides a JavaScript code that customer would embed into
their original company website. Then Answer Dash would scan the website content and
enhance the presentation of question and answer. Company also developed two
Analytics Dashboard- shows visitor’s reactions to answers, the visit time and
other actions.
A/B Testing- tool that allowed their customers to compare two versions i.e. one
Sales: Company marketed their product to anyone they were able to reach. The
founders of the company use “Minimum Viable Product” approach i.e. put out their
can submit a question through email or live chat. After that it is AnswerDash
decided if they the answer visible to their future customers and at place they will
Promotion: Their main approach was providing a free 30-day trail and the use of A/B
testing tool to their visitors. Some of the other approaches they used are inbound
marketing techniques, social media and also hired a PR firm for media exposure.
However, they expected customers to sign up on their own on company webpage, due
Pricing: Company created three pricing tiers that companies can choose based on the
usage. The basic pack at $99/month if company gets up to 2,500 tab clicks, pro at
$399/month if up to 15,000 tab clicks and enterprise at $1499/month for unlimited tab
clicks. The problem with this method was that if the company decided on any of the first
two price points but their tab clicks surpass that, what AnswerDash would do.
Answer: For calculation purposes, I will be using the data for RedAwning:
Customer lifetime value (CLV) of this customer would be: (Annual profit X Customer
Answer: For this calculation purposes, I am using RedAwning data from the case
study. It is a booking site that offers hotel-style reservations worldwide. The company
used A/B testing tool to measure the performance and comes up with:
50% reduction in customer support tickets. Let’s use $6 per ticket for call center
Reduction in live chat tickets from 150 to 20 per week i.e. 7800 to 1040 annually.
I am using $5 per ticket charge from the table provided in the case study.
Therefore, cost went down from $39,000 (7,800 x $5) to $5,200 (1,040 x $5) and
I used $0 for intangible value because even though we know that while using A/B
Users also stayed on those pages 7.6 times longer.” There are no numerical numbers
provided. Therefore, I am calculating absolute EVC, where we add up savings form the
product and then compare them with the cost. If the product offers enough benefits to
AnswerDash services.
Answer: For the valuation of needs, I will be RedAwning again. They found that
customer support calls from their respective clients are repetitive and it was adding a lot
of labor cost to their business. To show how much RedAwning will be able to save by
It will be hard to calculate to RedAwning perceived valued because some of the benefits
doesn’t have monetary value attached to them such as increase in sales conversation
rate of 31 percent and users spend 7.6 times longer on the company website. Let’s
benefits and RedAning’s absolute EVC, the perceived value swells $415,812 ($100,000
+ $315,812).
After losing their first client, Dr. Jacob O. Wobbrock (co-founder and CEO), Dr. Andrew
J. Ko (co-founder and CTO) and Ken Myer (board of director) decided they need to
make changes in order to build a profitable business. The decision making process,
Come up ideas- management team established three options and identify their
in the decision
salespeople.
and will be missing out on a first relationship with start-ups that grow fast
relatively quickly.
would make them loose customers whom they should focus on earlier
such as start-ups.
Decide on the alternative that minimize risk and costs and maximize benefits-
industries. However, don’t use prioritization criteria and focus on building a long
term relationship with their customer. They should definitely hire a special sales
force to make sales calls on regular basis to their respective clients. Even though
hiring a salesforce will be adding cost, however, they will get the benefits in the
The specific objective for the given marketing strategy is to collect the relative data on
all three options and decide which one or combination of two or three will work. Then
they should implement it as fast as they can, in order to not loose anymore clients and
stay one step ahead of their competitors i.e. Nanorep and Elevio. After implementation,
company should be able to increase their profit margin by 10% (assumption) and obtain
two more customers (assumption) by the end of this year. However, there are some
barriers to consider such as their current customers may not like company’s new
vertical approach with the help of special sales force. It will help the company in
to make important changes in their pricing criteria. They should focus on quoting each
client according to their needs. By quoting each customer separately, it helps the
company in getting more business as small companies won’t feel like that they have to
pay same prices as a large enterprise. Also, it will help their customers because they
don’t have to figure out which plan to purchase a head of purchase or make changes
after they reach their limit for prepaid clicks. Here, salesforce team plays an important
role by constantly contacting their customers and making changes to their plans
according to needs.
Whenever companies try to make new marketing strategies or try to make changes to
their current ones, there will be always some challenges. In our case, growing
competitors firms such as Nanorep and Elevio brings in great challenge. This marketing
The only way to grow in today’s economy is through big idea innovation which
AnsweDash already has and their new marketing strategy will help them stay on
top.
AnswerDash should ask their current customers about their feedback on their
product. After changing their strategy, they should start getting feedback
quarterly; this will keep company in touch with their customers. Also,
The new marketing strategy will help AnswerDash with overcoming the barriers that
were discussed earlier. Their new clients will understand company’s need to change the
strategy and stay ahead in the market. AnswerDash should offer their current clients
with the option of staying with previous plan since company has already overcome the
cost or see they can save more money with the new quote. This strategy is also
enabling AnswerDash to meet their set objectives by making changes to their prices