stayNsleep project is a hypothetical company on which I worked for my final project for the PMC course I enrolled for in the Product School.
Final Project Scenarios & Objectives
Product Brief: Business to Consumer (B2C) New Feature Launch
You are a product manager at Stay-N-Sleep (Similar to Airbnb) — an American vacation rental online marketplace company based in New York City, NY, United States. Their mission is to enable every traveler, to build a community of lifelong travelers, and allow the travel community to experience what matters. And their vision is to connect people, enrich communities, and open minds to new experiences and cultures.
Stay-N-Sleep offers arrangements for lodging and tourism experiences. They have one of the world’s largest marketplaces for unique, authentic places to stay and things to do, offering over 2 million accommodations and tens of thousands of handcrafted activities, all powered by local hosts. Since its inception, Stay-N-Sleep has served 20M+ guest arrivals and they have 200+ local experiences launched since March 2020.
The average Stay-N-Sleep guest spends 5.5 days and spends up to $1,045. Tokyo, Paris, and New York City are the most popular cities for Stay-N-Sleep booking experiences. The Stay-N-Sleep’s average per night price for reservations is $80. Currently, the fastest-growing Stay-N-Sleep guests are business travelers. Stay-N-Sleep empowers businesses to reimagine how their employees travel and explore each city during their non-business hours. Business travelers using Stay-N-Sleep have access to features like price alerts and payment groups to help manage company.
travel spend. Stay-N-Sleep is giving companies a new perspective on how they manage business travel. A hotel may offer large conference rooms and a pool for a strategy day, but Stay-N-Sleep provides a more unique and memorable option.
During the last 6 months, Stay-N-Sleep has seen a massive spike in the number of guests inquiring about a loyalty program and getting rewarded for choosing Stay-N-Sleep for their trips. Additionally, Stay-N-Sleep has seen increased interest in its corporate benefits for business travelers. Benefits include a free admin dashboard that makes it easier to book and manage company trips on Stay-N-Sleep. This dashboard gives admins better awareness and accurate reporting on employee trips. The Stay-N-Sleep executive team also believes they can leverage a well-designed loyalty program to increase their repeat business and customer lifetime value. The executive team knows that it costs them five times more to acquire new customers than it does to retain current customers. And, existing customers are 50% more likely to try their new products and experiences as well as spend 31% more than new customers. So, they want a loyalty program that encourages their customers to return and conduct more business with Stay-N-Sleep.
Stay N Sleep - Loyalty Program_CaseStudy(Hypothetical)
1.
2. To enable every traveler, to
build a community of lifelong
travelers, and allow the travel
community to experience
what matters
Create Focus → Get Directions → Define Behaviour
Connect people, enrich
communities, and open
minds to new experiences
and cultures
● Empowerment &
Accessibility
● Curiosity and Discovery
● Innovation and
Adaptability
● Authenticity and Integrity
3. Strong Market Presence Internationally
● Offers 2M accomodations and 10,000+ Local activities
● Served 20M+ guests
● 200+ local activities hosted till date
● Avg number of days spent by a guest are 5.5 days
● Avg expenditure done by guest is $1045
● Avg per night price for reservations is $80
● Tokyo, Paris and New York City are the
most popular cities for booking experiences
4. Customer Retention is more profitable than Customer
Acquisition
Costs 5 times more to acquire
a new customer
50% of existing customer tend
to try new feature
31% of existing customer likely
to spend more
5.
6. Supplier Power : Hosts - High
Multiple and varied network of
hosts
Cost varies and is dependent on
the willingness of the host
Analysis of the industry structure
Buyer Power : Guests -
Low
No group buying
Bargaining power is
low
Price sensitivity is high
Threat of new entry : Moderate
Need a huge network of host
Strict legal policies for renting
Huge competition
Lucrative offers
Threat of substitute :
High
Wide range of
alternatives - Hotels,
Home swaps, Hostels,
BnB
Offers discounts or perks
Competitive Rivalry :
High
Strong rivals - Airbnb,
Booking, Expedia,
HomeAway, HouseTrips,
Tripadvisor
Offers discounts or
perks
10. Using the value proposition canvas to identify
opportunities for differentiation
11. Finding any missing feature
INVESTMENT
USER
SATISFACTION
PERFORMANCE
(MORE IS BETTER)
USER
DISSATISFACTION
LESS INVESTMENT
- Sign up for free
- Book a stay
- Book an event
- Online payment
- Safe place to stay
- Discounts/Offers
- Easy Cancellation
Policy
- Connect to host
- Rate & Review
system
- Flexible check-in
and check-out
- Exclusive and
personalized offers
on luxury stays
- Recommendations
12. Engage and retain users through habit formation
1.Internal: Curiosity and
Desire
2.External: Notifications,
digital marketing,
Campaigns
5. User profiles / wishlist /
feedback and reviews /
membership or loyalty
program
4. Unique experience / Social
Rewards / Personalized
service / Upgrades
3. Ease of use / Welcoming
environment
13.
14. Gauging the criticality of the feature request
INVESTMENT
USER SATISFACTION
PERFORMANCE (MORE
IS BETTER)
USER
DISSATISFACTION
LESS INVESTMENT
15. Is working on Customer Loyalty Program worth
it?
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
● Network Effect
● Diverse Inventory
● Community and
Trust
● Global Brand
Recognition
● Unaffordable prices
during holiday
season
● Competitors have
the loyalty program
● Bad reviews
● Price reduction by
offering discounts or
exclusive deals
● Personalising the
search
● Increased
Competition
● No motivators
● Negative guest
experience
● Macroeconomic
conditions
20. Motivation to come back
Enhanced customer experience
Recognition and appreciation
Convenience and ease of use
Community and Networking
Feedback and Influence
Increase repeat business
Increase customer lifetime value
Enhance brand perception and loyalty
Competitive advantage
Enhance customer engagement
Increase customer frequency
Acquire new customer
21. How can I drive sustainable growth while nurturing customer relationships?
32. Measuring the success of MVP
- What % of the target audience has acquired
the MVP?
- What is the positivity of the feedback from the
target audience?
- What revenue is the MVP delivering?
- What profit is the MVP returning?
- Whats % of users intend to use the product
as it develops beyond being a MVP?
- No of bookings completed post the launch
- No of referrals
- No of booking done via referrals (conversion rate)
- No of recommendations sent
- No of reviews posted
- No of followers increased post launch
- No of tags increased post launch
- No of stories posted
- NPS
- Revenue
Overall Success Metrics
33. Go-To-Market Plan
Pre- Launch
- Soft Launch
- Test the message in the campaigns
- Survey
- Banners in mobile apps/website
Promotions
- Social Media promotions
- In-app notifications
- Email campaigns
