A proof of concept of a delivery service offering package bundling and flexible delivery times for private households and companies.
The project "Parcel Butler" aimed to develop a service to improve parcel delivery experiences by offering flexible delivery time slots and guaranteed delivery, targeting various household types. The challenge was to design a viable product and business model that could compete in a market where the costs associated with the "last mile" delivery are high, and consumer price sensitivity is moderate.
Market and Competitive Analysis:
Conducted thorough desk research and interviews with domain experts to understand the current market environment and identify key competitors. This analysis included studying existing services, pricing strategies, and market trends.
User Interviews
Recruited participants and conducted interviews to gain insights into user behaviors, preferences, and pain points related to parcel delivery. The goal was to identify the most valued features and willingness to pay for a premium service.
Creation of a Test Landing Page
Designed and launched a test landing page to validate market interest. This page was promoted through targeted ads to attract potential users and gather data on customer acquisition costs, click-through rates, and overall interest in the service concept.
Website Analytics Monitoring
Set up tracking and a dashboard to monitor user interactions on the landing page. This data was essential for evaluating the effectiveness of marketing efforts and understanding the user journey.
Synthesis of Market Potential
Combined the findings from market analysis and user interviews to create personas and estimate market size. This synthesis helped in understanding the potential demand and segmenting the market for targeted strategies.
Product Concept and Feasibility Development
Developed detailed product concepts, including storyboards, user journeys, and wireframes. The feasibility study included user stories, story mapping, and resource analysis, focusing on the technical and operational requirements for bringing the product to market.
Business Model Development
Created various business model concepts, focusing on different monetization strategies (end-customer and carrier). This included setting up pricing models, understanding stakeholder roles, and evaluating the overall financial viability through different business case scenarios.
The research using the test landing page revealed that the estimated customer acquisition cost was around 30€. The analytics provided insights into customer engagement, indicating a positive response to the concept. The data gathered from this exercise was instrumental in refining the business model and understanding the potential market demand.
Outcome
The research confirmed that there is a validated customer need for flexible and guaranteed parcel delivery services. The analysis helped in identifying the right customer segments and pricing strategies that could make the service viable.
The project’s research laid a strong foundation for the iterative development of the product, allowing for adjustments based on real customer feedback and market conditions. The business model was validated to an extent, showing promise for future scaling and expansion, albeit with a cautious approach to investment and operational scaling.