Market Testing a Business Idea

Find a Sparkie
Website Case Study

The Problem

The team behind ‘Find a Sparkie’ came to us with an idea. They wanted to develop a responsive website that allowed users to sign up and pay a nominal fee to receive fast and reliable quotes from local tradesmen. 

Our challenge was to identify the target market and product pricing required.

To do this, we asked:

  1. Would customers be willing to pay for quotes from reliable electrical contractors rather than just requesting free quotes?
  2. What would be the optimal price point that users are willing to pay for this service?
Casestudy Screenshot 2 2x

Our Solution

The Hunted Hive designed and developed a responsive website landing page, which consisted of an online form with a Stripe payment facility. We created a strategy to economically test the market and determine the viability of the proposed business. This strategy involved defining what would constitute a successful outcome for the system, hypothesising users perceptions of price and value, and determining bottlenecks - which became apparent in the user experience and A/B testing.

The team created an A/B test experiment. The focus was to find out whether users were prepared to pay to receive quotes from electrical contractors. During this experiment several price points were tested to determine the optimal price range. The price points used were; the original price at $5.00 and free option, $10.00 and free option, $20 and free option, and no visible price option.

Over a seven-day period, Google (PPC) Advertising was used to drive visitors to the site, start recording click-through rates, and generate statistically significant values to record results.

The Results

The team successfully identified a strategy that used the smallest possible effort but gained maximum outcomes, results and answers.

The website received a total of 299 unique visitors over a seven day period. There were 11 visitors who clicked the “Contact Us” form button at the bottom of the page. We believe this showed that a high number of users were interested in contacting the company directly rather than filling in the online form to obtain a quote. It was determined that users were more willing to pay $20 for the quote as opposed to the $5 or $10 options. This indicated the users see value in service.

Google Analytics Summary:

  • Step 1 - 299 users visited the website.
  • Step 2 - 28 users clicked through from the homepage to the job form page.
  • Step 3 – Out of the 28 users, 17 exited the website without filling in the form, and 16 users filled in the job form clicking through to the payment page.
  • Step 4 - 0 users filled in the payment form, and 11 users clicked the “Free Quote” button.

Target Market

We found customers were willing to pay for quotes from reliable electrical contractors.

Product Pricing

Our results indicated  the optimal price point was $20. This was the highest amount tested.

Visit Find A Sparkie