Creating a winning go-to-market strategy : Dyme

MBA-Master of Business Administration

Amsterdam Business School

Creating a winning go-to-market strategy

Dyme MOH MASSAAL Master’s thesis for the degree program Master of Business Administration SUPERVISOR: Dr. Sebastian Kortmann August 2018

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Acknowledgement

Foremost, I express my sincere gratitude to Dr. Sebastian Kortmann for supporting me in all stages of this work. I am especially thankful to him for giving me confidence and constant advice, despite his busy agenda. I always received constructive feedback as quickly as possible.

I also wish to thank the founders of Dyme for giving me the opportunity to write my thesis at their company. I am very grateful for trusting me and sharing all the confidential information in the early stage of the company. In extend, thank you for contributing and sharing your knowledge and experience to support me writing my thesis. The discussions, ideas and feedback have been very valuable to me.

I extend my sincere thanks to all the professors that taught me during the MBA-program and for sharing their knowledge and personal experiences during the courses. All this contributed to this thesis. I am very grateful to all of you.

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Abstract

Massaal, Moh. 2018. Develop a winning Go-To-Market strategy. Dyme’s is a subscription management tool which helps users to track, cancel and switch subscriptions in a simple and convenient way. Amsterdam Business school. Master of Business Administration. Pages 57.

This research includes a methodical analysis of the markets, customer segments, different channels, and value proposition design, along with additional analyses based on trends and economics of the mobile application world. The outcome of this research determines the market opportunity, target market for initial penetration, and unique value proposition that Dyme offers to target customers, as well as the target customer that fits Dyme’s value proposition, and selection of the right channels. The theoretical frameworks were obtained through relevant books, articles, and studies. The empirical information was gained through discussion, interviews, observations, online research, and personal experiences.

Analyses were conducted to identify the most attractive market in three different market segments: energy supply, health insurance, and telecommunications provision. The results of this thesis demonstrate that the most attractive market to pursue in the short term (0–12 months) is not the market with the largest size, but the market with the most urgent pain that needs to be resolved. The energy supply market is a market where people already use different existing solutions to switch and cancel their subscription. It allows Dyme to quickly exploit this market and create brand awareness and trust with the first group of users. According to the findings, Dyme’s one-click switch solution allows the company to differentiate itself from its competitors in the red ocean. For example, the auto-switcher makes it possible to switch utility and insurance providers annually using “one click” at the end of the year. Based on the identified customer segments, different channels to enter the market in the short term (0–12 months) and mid-term (12–24 months) are identified. Dyme’s management should apply different channel strategies for the different segments. They must consider the financial resources available and the stage the company is in, for example, starting with organic growth channels in the first phase, and then kicking off the growth phase with paid channels in the mid-term.

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Content

Acknowledgement ... 2 Abstract ... 3 List of Figures ... 6 List of Tables ... 6 Introduction ... 7 Background ... 7 Company description ... 8

The research question/scope ... 9

Methodology ... 10 Literature review ... 11 Theory ... 12 Lean canvas ... 12 Segmentation design ... 14 Competition ... 16

Customer Journey and Personas ... 16

Market Analyses ... 18

What is a subscription? ... 18

Market trends: Growth potential in the subscription industry in Europe and the US. .. ... 18

Sharing financial data ... 19

Target Market ... 22

Framework application ... 25

Lean canvas ... 25

Value proposition design ... 26

Customer segmentation ... 32

Market Opportunity ... 40

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Key findings & recommendations ... 46

Limitations ... 54

References ... 55

Appendix ... 57

List of Figures

Figure 1. Lean Canvas Business Model ... 13

Figure 2: Value proposition Canvas ... 14

Figure 3. Global Open Banking Developments ... 20

Figure 4. Subscription market Europe ... 21

Figure 5. Trends and analyses, the Netherlands ... 22

Figure 6. Analyses, energy segment ... 23

Figure 7. Analyses, telecom segment ... 23

Figure 8. Analyses, health insurance segment ... 24

Figure 9. Lean canvas model Dyme ... 25

Figure 10 Customer segment 'Tthe Rrunner' ... 28

Figure 11 Customer segment 'Tthe Ffollower' ... 29

Figure 12 Strategy Canvas ... 31

Figure 13. Persona Daan ... 36

Figure 14. Persona Naomi ... 37

Figure 15. Customer Journey Map ... 39

Figure 16. Top channels for mobile application acquisition ... 44

Figure 17. Channels to enter the market for Dyme ... 45

Figure 18. Referral advertising ... 51

Figure 19. Market opportunity 'Runner' in all three markets ... 57

Figure 20. Market opportunity 'Follower' in all three markets ... 57

Figure 21. Market opportunity 'Runner & Follower' in all three markets ... 57

List of Tables

Table 1: Market switchers 'The Runner' ... 40

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Introduction

This thesis presents a winning go-to-market strategy for Dyme. It does so by delivering a plan for reaching and serving the right customers in the right markets, through the right channels, with the right value proposition. The purpose of this project is to create a powerful, winning and sustainable go-to-market strategy that will attract, win and retain customers. In addition, this thesis assists the founders to better understand how the pains, gains, and value are delivered by their new offer in a fast-changing technologies market.

Background

The subscription business model is booming. While it was previously dominated by businesses like gyms, utilities, and telecommunications (telecoms) firms, more products and services are being offered to more people through subscriptions than ever before. Hence, the amount of paid subscriptions per person is increasing rapidly. This leads to a lack of overview for most consumers. A study conducted by Nibud (2018) in the Netherlands shows that 53% of people aged between 18 and 35 forget to cancel at least one subscription due to automatic billing. Additionally, cancelling subscriptions is perceived to be difficult and time consuming, with consumers on average paying €50 per month for subscriptions they would rather cancel. In addition, the US is the known leader in Internet of Things (IOT), and innovative companies perceive this as a trending new area for fresh opportunities. McKinsey (2018) conducted a study of US consumers in February 2018 called “New Research on E-commerce Consumers’. Its aim was to understand subscription e-commerce trends, which has implications for start-up businesses such as Dyme. The study found that 15% of online shoppers have signed up for one or more subscriptions
to receive products on a recurring basis and that the number is still growing. Furthermore, according to a Zuora report (2017), the subscription economy index (SEI) reveals that subscription business grew about eight times faster than S&P 500 company revenues (15.2% vs 2%) and about five times faster than US retail sales (15.2% vs 3.4%) from January 1, 2012 to March 30, 2017 (ZUORA, 2017). The greater challenge facing subscription e-commerce companies is churn, and this study found that, overall, nearly 40% of subscribers have cancelled their subscriptions.

8 This means that there is a high volume of people switching subscriptions every year. Hence, more and more entrepreneurs, like the founders of Dyme, are researching and experimenting with products that leverage this opportunity by providing solutions that are easy, inexpensive, and convenient for consumers.

Company description

Dyme is a start-up company located at the start-up village (Science Park) in Amsterdam. Dyme is a subscription management tool which helps consumers to track, cancel and switch subscriptions in a simple and convenient way. The start-up village is a community working space in Amsterdam Science Park that allows innovative high-tech and science-based start-ups to start building their product, while also enabling entrepreneurs to share their ideas with professionals. In addition, entrepreneurs gain easier access to an extensive network of industry leaders, business professionals, service providers, and investors from whom they might raise financial capital for their new product.

The company was launched in August 2017 and its initial focus is to start launching its product in the Netherlands. Dyme has adopted the lean start-up method to build a successful business (Ries, 2013). To uncover the real problem that needs to be solved and begin the process of learning as quickly as possible, a Minimum Viable Product (MVP) is being developed and tested by the closest friends and family of the founders in the Netherlands. After successfully launching the product and achieving product-market fit in the Netherlands, Dyme aims to do the same in Benelux, the UK, Germany, and Scandinavia. Dyme’s Shareholders § General Strategy & AI, Jorann Iedema § Growth & Design, David Schogt § Finance & Operations, David Knap § Back-end & Android, Wouter Florijn § Front-end & iOS, Matthijs Otterloo

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The research question/scope

As previously stated, the purpose of this project is to craft a winning, sustainable go-to-market strategy for Dyme. It will outline the right strategy to reach and serve the right customer in the right markets, through the right channels, with the right value proposition for Dyme. “How to Create a Winning Go-to-Market Strategy for Dyme” In the first part of this project, market analyses are presented. Who are the target markets? What is the size of the market? Is the market growing and what are the trends? What are the indications that growth will be sustained in the long term? The second part of the project identifies the ideal target market, while the third part involves defining the product and crafting the (customer) value proposition. What value does Dyme offer and why would someone buy from Dyme instead of from competitors? In part four, the target customer is identified and defined. After information about the market and customer has been collected, the right channel strategy needs to be determined in order to enter the market as efficiently possible with the right resources and the right value proposition. 1. Market analyses and trends: Before analyzing if consumers want to switch and how they prefer to do so, analyses of the subscription market are done. 2. Define the target market: What markets does Dyme want to pursue? Which market has the largest market size and greatest, most urgent pain? 3. Define the value proposition: What unique value does Dyme offer to target customers? 4. Define the target customer: Who is the target customer that fits Dyme’s value

proposition?

5. Defined channels to enter the market: What channels need to be used for building awareness, driving downloads and encouraging sharing?

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Methodology

This study was conducted over a three-month period of time. As the research was done by a single person, it was also necessarily limited in scope and geographical area. Existing secondary and tertiary data have therefore been used. All of the data were published recently, in 2017 and 2018, and thus provide high value for this thesis in terms of relevance. Data was collected from the following sources in order to provide a solid, strategic thesis: § Meetings and discussions with Dyme’s founders - Weekly face-to-face meetings with the founders to discuss the product and their vision - Unstructured questioning

- Phone calls and email communication to share updates regarding product/MVP

§ Existing research and studies conducted by independent companies (marketing organizations) which addresses specific industries (secondary data)

§ Literature and case studies from the MBA program

§ Online research, including third-party references on similar products and competition

As mentioned before, every effort is made to provide accurate information and the most relevant data available during the period in which this thesis was written.

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Literature review

In order to answer the research question, multiple sources of literature, frameworks and theories have been used. This thesis will mainly focus on three of the nine building blocks from Osterwalder’s business model canvas for business model generation. The three blocks— market segmentation, value proposition, and channels—are used to deliver the value proposition to the right customer. This part of the thesis reviews the main books that have supported this research. Osterwalder, Pigneur, Bernarda, Smith, & Papadakos. (2014). Value Proposition Design: How to create products and services the customer wants.

This book provides assistance on tackling challenges faced by every business and helps businesses to create compelling products and services that customers want to buy. It supported this research by providing a better understanding of the patterns of great value propositions, tactics for getting closer to the customer, and ways to avoid wasting time with ideas that do not work. It was a very useful book that taught me the comprehensive process to be used for designing and testing value propositions and discovering how products and services can perfectly match customer needs. Chan & Mauborgne (2005). Blue Ocean Strategy

Book: This book provides a deeper understanding about how to compete in a highly competitive industry. It includes some tools, collectively called the “blue ocean,” that organizations can use to improve competitiveness by creating new demand in an uncontested market space. In addition, the strategy canvas helped me to better understand competitors and identify where more value could be added in comparison to the competition. Instead of using traditional competitive analyses, I used the strategy canvas. (Chan & Mauborgne, 2005).

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Philip Kotler & Gary Armstrong (2017). Principles of Marketing, 17th _edition

This book demonstrates how to divide large markets into smaller segments that can be reached more efficiently and effectively when developing a channel strategy. In this way, management is able to select the appropriate channels for meeting customers’ unique needs and solving their problem. This book was highly useful to me as there is no single way of segmenting the market, and the different variables that might be applied were clearly explained.

Theory

This part of the thesis discusses the process that this research will apply, using different theories from the literature review that are relevant and that support this in-company project. It will also set out the reasoning for the chosen theories. Lean canvas To answer the first part of the research question and define the (customer) value proposition, the Lean Canvas Business Model is used. Dyme’s strategy for launching their product is the lean start-up method developed by Ries (2013). Currently, the founders want to launch an MVP as quickly as possible. They do not want to invest in scaling the company until they have achieved product market fit. For this reason, instead of using Osterwalder’s business model canvas I have used the lean canvas model instead. The lean canvas is an adaptation of the BMC by Alexander Osterwalder and was developed by Maurya (2018) in the “Lean Start-up Spirit.” It focusses on problems, solutions, and competitive advantages. Some sections from the business model have been exchanged, but the structure is similar. According to Maurya (2018), the lean canvas is more actionable and entrepreneur-focused. It has a deep focus on start-up factors such as uncertainty and risk. Maurya says that most start-ups fail, not because they fail to build what they set out to build, but because they waste time, money, and effort building the wrong product.

13 Figure 1. Lean Canvas Business Model Source. https://leanstack.com/LeanCanvas.pdf In addition to the lean Canvas Business model Osterwalder et al. (2014) developed the value proposition canvas, where the focus is on customers and their requirements. With the value proposition canvas (VPC) the goal is to find out why the customer needs the product, what the customer might perceive as an added value and what the customer finds annoying or disadvantageous (Osterwalder et al., 2014). If Dyme has great insights regarding their pains, the VPC helps to systematically understand what the customer wants, meaning that Dyme is then able to create a product/service that perfectly match customers’ need. According to Osterwalder et al. (2014), the value proposition is the reason why customers turn to one company over another. It solves a customer problem or satisfies a customer need. Some value propositions may be innovative and represent new or disruptive offers. Others may be similar to existing market offers but with added features and attributes. Here is a question related to developing the value proposition. What value do we deliver to the customer? Which one of our customers’ problems are we helping to solve? Which customer

14 Figure 2: Value proposition Canvas

needs are we solving? What bundles of products and services are we offering to each customer segmentation? Osterwalder says in his book that “a value proposition creates value for a customer through a distinct mix of elements catering to the segments they need, these elements may be quantified (e.g. price, speed, service) or qualitative (e.g. design, customer experience)’’. He describes a list of value-creating elements to which a company can contribute: newness, performance, customization, “getting the job done,” design, cost reduction, risk reduction, convenience, accessibility, and price. A company could choose to focus on some of these elements to be competitive. Source. Value proposition design. Osterwalder et al. (2014 ) RECOMMENDATION: TEST CUSTOMER ASSUMPTION -> ADJUST AND REDESIGN Segmentation design Literature by Kotler (2017) and value proposition design by Osterwalder et al. (2014) have been used for the second part of the project, which deals with market and customer segmentation

In theory, understanding the market is an important key element in the process of developing a successful go-to-market strategy. The traditional market segmentation process, according to Kotler & Armstrong (2017) is to divide the market into several groups and/or segments

15 based on factors such as geography, demographics, psychology and behavior. Kotler & Keller (2017) address the importance of companies adapting to their target audience’s needs, wants, and values. However, the rapidly changing environment, technological advances in, for example, platform businesses, and mobile application solutions force new businesses to seek the best problem–solution fit, as mentioned by Osterwalder et al. (2014). In this thesis, I will approach market segmentation in two ways: traditional segmentation as discussed by Kotler & Keller and the new approach by Osterwalder et al. (2014) “focusing on the jobs, pains, and gains that drive customers,” and segmenting on that basis. Market segmentation according to Kotler & Armstrong. (2017): • Geographic: Dividing a market into different geographical units such as nations, states, countries, cities, and neighborhoods. • Demographic: Dividing markets into groups based on variables such as age, sex, family size, life cycle, occupation, religion, education, and nationality. • Psychographic: Dividing a market into different groups based on social class, lifestyle, or personality characteristics. • Behavioral: Dividing the market into groups based on consumer knowledge, attitude, use, or response to a product. The new approach involves creating a customer profile in order to uncover what truly drives people rather than just describing the jobs, pains, and gains that drive customers. This is done by developing the value proposition canvas which is described in chapter 10 when the customer profile is created and matched to the value the company can create, the market is segmented not only according to geographic, demographic, psychological, and behavioral factors, but also according to those with a pain that needs to be resolved (Osterwalder et al, 2014, p. 31). In addition, digital business allows companies to scale easily at low cost and attract a high number of customers from different geographical areas around the world with ease and speed.

Clearly, the traditional way of segmenting according to Kotler & Armstrong (2017) is important because it allows companies to first concentrate on a restricted geographical area and create proof of concept before expanding their geographical boundaries.

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Competition

It is well known that most businesses use Porter’s Five Forces (Porter, 2008) as a tool for understanding the competitiveness of the business environment and identifying their strategic potential profitability. This framework has remained viable for a long time and is still taught in business schools all over the world. It provides a snapshot of the industry at some point in the past and the present, which can be useful for short-term strategy. However, rapidly changing environments and technological advances are not considered in the Five Forces framework. Dyme’s new solution focuses on competing in a “blue ocean.” According to Chan & Mauborgne (2015), there are two sorts of oceans in the market: “red ocean” and “blue ocean.” Red oceans represent all the industries in existence today. This is the known market space. On the contrary, blue ocean denotes all industries not in existence today. This is the unknown market space. Dyme is seeking business in an area with almost no competition. The strategy canvas aims to capture new demands and make the competition irrelevant by introducing this unique product with a great value proposition. The strategy canvas is both a diagnostic and action framework for building a compelling blue ocean strategy. It serves two purposes. First, it captures the current state of the known market space, in other words, the existing competition. This allows one to understand where the competition is currently investing; the factors the industry currently competes on in products, services, and delivery; and what customers receive from the existing competitive offerings on the market (Chan & Mauborgne, 2005). Customer Journey and Personas After one understands the customer, the next step is to analyze how the customer can come into contact with the company in the shopping environment, in a multitude of ways and from different starting points, from awareness and research to purchase and experience. Customer journey mapping is used to improve customer experience. A customer journey map is a very simple idea: a diagram that illustrates the steps your customer(s) go through in engaging with your company, whether it be a product an online experience, retail experience, or a service, or any combination”. The fictive persona method is used to support customer journey mapping. According to Revella (2015), the persona method is widely used by technology

17 designers to describe users and customers. This person is a fictional description that represents a target customer or user group for a product, and typically presents information about demographics, behavior, product usage, and product-related goals, attitudes, and tasks.

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Market Analyses

Before analyzing if consumers want to switch and how they prefer to do so, analyses of the subscription market are primarily done. What is the market size in Europe and the Netherlands? Is the market growing, and what are the trends? What are the indications that growth will be sustained in the long term? Is the target segment substantial enough to be profitable? Defining subscription What is a subscription? “An arrangement that facilitates regular delivery or long-term use of a service or product. It is a signed agreement between supplier and consumer. The arrangement settles what the product/service is, frequency of usage/delivery, at what cost, and within what timeframe. As mentioned before, the subscription business model is booming. Subscriptions for consumer goods have been in existence for a long time, and the area was previously dominated by business like newspapers, gyms, utilities, and telecoms firms. Now, however, more products and services are being offered to more people through subscriptions than ever before. The Internet revolution, with its vast reduction in transaction costs, has enormously increased opportunities for consumer subscriptions. For example, video- and music-on- demand subscription services such as Netflix and Spotify show impressive growth. A study conducted by the ING economics department ( (2018) shows that the success of service-related subscriptions has inspired other companies to offer tangible goods (both durable and consumable) on a subscription basis as well. Below, I examine the subscription market in Europe before narrowing the focus, to the Netherlands. Market trends: Growth potential in the subscription industry in Europe and the US. The European market: According to research done by ING (2018), the subscription economy will grow further, enabled by technological developments, shifting consumer preferences, and favorable regulation for product design. ING (2018, p. 33) believes that the amount spent on subscriptions will grow by an additional 190 billion euros yearly. This growth is expected also due to the fact that consumers subscribe to additional tangibles. The potential for growth is

19 higher than for subscription to traditional services, as mentioned before. In addition, from Deloitte’s database on “the subscription prescription” in the online media, and the average number of subscriptions per individual and household is expected to grow by at least 20% in 2018 and will continue to increase in the medium term. This is a positive trend. Additional data based on the US market is added in the appendix, since the focus is primarily on the Dutch market. Sharing financial data The foundation of Dyme’s application (app) is based on the willingness of its customers to share their data with third-party providers. If customers are not willing to share their financial data with third parties, Dyme has an extremely low prospect of success. What is open banking? And what is the new PSD2 (EU level) legislation? Accenture (2017) as produced a report that gathers together recent thinking and research conducted on the topic of open banking. According to Laura Brodsky (McKinsey, 2018), open banking can be defined as a collaborative model in which banking data is shared through an application programming interface (API) between two or more unaffiliated parties that allows for the flow of data between systems in a controlled yet seamless fashion. In the United States, APIs have been used for a long time to enable personal management software to connect developers to payment networks such as VISA and MasterCard. However, nowadays they are used primarily to share information rather than to transfer money to different accounts. As a result of open banking systems, underserved markets could potentially benefit from customer experience, new revenue income, and the potential to create a sustainable service model for APIs. 65% of respondents see open banking as more of an opportunity than a threat. Source. Accenture Report, 2017 Open banking is a highly discussed topic in different industries. The G20’s Anti-Corruption Working Group has identified open data as a priority for advancing public sector transparency and integrity. Data can serve as a catalyst for new business models and products such as Dyme’s application. As mentioned in Accenture’s report (2017), the EU has been proactive on this front, setting the rules of engagement through the updated version of the Payment Services

20 Directive (PSD2). PSD2 explicitly provides account holders with the authority to share data, removing financial institutions’ gatekeeper roles. Driven by regulatory action, including PSD2 in Europe and the Open Banking initiative in the UK, banks are being forced to open up their banking systems and data. This means that, with the customer’s agreement, banks must make data (including transaction history and balances) available to third-parties in a regulatory way through APIs. This enables third-party providers, such as Dyme, and fintech insurers, other banks, and telecommunications companies to use the available data on their platform to improve the products and services they offer.

Figure 3. Global Open Banking Developments

Source. McKinsey Payments Practices

Currently, 61% of all Europeans are willing to share their financial data with third-party providers, indicating a shift in perceptions of financial privacy (Accenture, 2017). Furthermore, the new PSD2 legislation enables users to share banking data with third party applications, through the banks’ APIs. With subscriptions taking an increasing size of the consumer spending budget and over 183 million Europeans willing to share financial data, Dyme addresses a large—and growing—market.

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European market size: The total size of the business to consumer subscription economy can be estimated at around €350 billion according to ING. This is divided by subscriptions related to service, information goods, consumable goods, and durable goods. On average, every household spent €130 on subscriptions in 2018. Figure 4. Subscription market Europe Source. ING economics department Source. ING economics department Other interesting metrics from this study show that young people will continue to describe more; high income groups have the most potential compared to middle and lower income groups, and Eastern Europeans are most positive about subscriptions (ING, 2018) NOTE: In Figure 4 the service subscriptions market is only of interest for Dyme. This research is based on all the subscriptions available, including TV on demand, music, and so forth. We are only interested in the segments of energy supply, health insurance, and telecoms provision.

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TRENDS & NUMBERS NETHERLANDS

NIBUD 2018

80% of all Dutch people logs in into their online account

where they can access the different

subscription platforms to view, change or cancel. NIBUD 2018 People between 35-60 have high administrative skills, but lack digital skills.

NIBUD

44% of all the Dutch people forgets to cancel their subscription due to automatic billing. CBS People between 18-35 have high digital skills, but lack

of administrative skills. ING Technology and customer needs increase growth in the subscription economy. KASSA 2015 40% of consumer pays for at least one

subscription they want to cancel.

NIBUD 2018

at least 53% of the people between the

age of 18-35 years forgets to cancel at least one subscription due to automatic billing (2.2 million potentials). NIBUD 2018 People between 35-60 have high administrative skills, but lack digital skills

Sources: ING economics department report 2018, Nibud Financiele administartie 2018, CBS statista Figure 5. Trends and analyses, the Netherlands

Target Market

Crafting a winning go-to-market strategy requires a clear understanding of how to pursue the right market. The company has asked me to analyze the B2C market in the following three segments: energy supply, health insurance, and telecoms provision. The founders believe that their product is especially appropriate for these markets and that they can attract the most profitable customers within these markets. I will analyze the three different markets and assess each market opportunity by using the following key metrics: Which markets have the biggest pain? Market size, subscription trends, profitability indicator, already existing competition. In the short term, profitably pursuing every market segment is not a particularly good idea. Therefore, after determining where the company can most effectively differentiate itself and attract the most profitable customers between the different segments recommendation will follow. Figures 3, 4, and 5 show the most important key findings based on the analyses done in all three segments.

23 Figure 6. Analyses, energy segment

Figure 7. Analyses, telecom segment

MARKET ENERGY SUPPLIERS

MARKET SIZE: 7.7 MILLION CONNECTIONS

Sources. CBS statista, NIBUD Financiele administratie, ACM energiemotor 2016-2018

17% of all household in the Netherlands switches energy supplier every year. Whereas in 2010 it was 8.5% so it is increasing. Why? Easier to compare different suppliers through websites to getting better offer.

Number of households in the Netherlands in 2017 were 7.7 million

People use comparable online sites to switch their energy supplier

ACM is expecting that the amount of household that is going to switch is going to double in the upcoming years.

Yearly growth 50.000 households in the Netherlands

People switch to save costs (about 20% of cost savings).

AGE distribution 20-40 years are 886.000 households

MARKET TELECOM INDUSTRY

1 OUT 5 PEOPLE SWITCHES

TELECOM SUBSCRIPTION

(22%)

Sources. CBS statista, NIBUD Financiele administratie, ACM energiemotor 2016-2018

22% switches to another provider, whereas 32% stays with the same but chooses another solution

On average Customers stay 6.3 year with the same provider 20% off all people is going to switch next year and 38% is thinking about switching to another provider in the next year

14% of the people find their subscription expensive but didn’t switch to another provider (potential)

60% orientates through websites of providers on line, and 40% uses a comparing website such as vergelijk.nl

Reason why 38% of all people switched is to safe costs.

5% of all people thinks it’s too complicated to switch (PAIN)

24 Figure 8. Analyses, health insurance segment

MARKET SEGMENTS

5.4% of all people in the Netherlands is going to switch their health insurance in 2018 compared to 6.4% in 2017.

14.9% are thinking about switching their health insurance in 2018

18-39 years group (24%): 4.2 million people have a health insurance in this group.

Health Insurance

Current insurance expensive (high costs)

Healthcare need changes

Unsatisfied with coverage current insurance

Reasons why people switch?

Insurance cost doesn’t change a lot, high effort low benefit

Don’t have faith in other health insurances

Satisfied about current health insurance

Reasons why people switch?

MARKET SIZE: 17.2 MILLION INSURANCES

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Framework application

In this section, the different theoretical frameworks are applied and the resulting analyses are described in the same chronological order as the description of the chosen theories. Lean canvas During this project, I developed a lean canvas model in order to brainstorm about problem– solution fit, prioritizing where to start and developing a clear overview of current elements of the business model. The elements of the lean canvas model are in line with Dyme’s current stage of development: a start-up business run by entrepreneurs. It begins with a problem, a proposed solution, and the channels to achieving the solution. It assesses whether the business has an unfair advantage over others, and is a simple problem–solution oriented approach which enables the founders to develop step by step. This approach, the lean start-up way, is how the company is being built.

Figure 9. Lean canvas model Dyme

Lean Canvas

DYME.app July 2018

Cost Structure 1. Cost of acquisition 2. Development application 3. Customer support 4. Financing costs Revenue Streams 1.Affiliate Fee income 2. Cancellation commission ( €3,- ) 3. Potential other revenue Problem 1. Cancelling subscription difficult and time consuming 2. High subscription expenses 3. Lack of overview about current subscription Solution 1. Automatic cancelling save cost for being too late 2. Automatic switch to new subscription ONE-click better solution 3. List Overview of all subscriptions saves time Key Metrics 1. App download 2. Accounts installed 3. Actual clearance given share bank data Unique Value Proposition 1. Easy to use application one-click to cancel and switch subscription 2. Time saving comparing, cancelling and switching subscription 3. Convenient overview of all subscription enables easy way to manage your subscriptions Unfair Advantage 1. First mover advantage, leveraging PSD2 regulations 2. Partnership with BUNQ bank 3. Usability (easy to use) usage testing with children from 9-15 years Channels 1. Organic Friends & Family, DYME app, Landings page website, Email App store optimalization, Content marketing communities and blogs, Partnerships, SEO 2. Paid Social Media, PR/Influencers Google add words, Advertising, Paid Referrals, (Tech)Events Customer Segment Users in The Netherlands 1. Early adaptors Age between 20-40, Influencer, high digital skills 2. Prospects users Age between 20-40, follower, medium digital skill PRODUCT MARKET

26 Value proposition design As mentioned before, next to the lean canvas model, the value proposition canvas (VPC) is used. The VPC consists of the value (proposition) map, which describes the features of the specific value proposition in Dyme’s business model in a more structured and detailed way. It divides the value proposition into products and services, pain relievers, and gain creators. The VPC also includes the customer (segment) profile, which describes a specific customer segment in the business model in a more structured and detailed way. It breaks the customer down into its jobs, pains, and gains (Osterwalder, 2014). The VPC is a tool to test the value propositions set at the beginning in an interactive search for what customers want. It is a never-ending process, and the team must evolve their VP constantly to keep it relevant to the customer. The objective is to achieve fit between the two when one meets the other. During this process, two customer segments have been profiled in the VPC. On the right side of the canvas is the identification of the tasks the selected customers are trying to complete, the pains they have, and the outcomes and benefits they want to achieve. Each is then prioritized (and numbered from 1 to 3) with the most important jobs, extreme pains, and essential gains above the moderate pains and nice-to-have gains at the bottom (Osterwalder et al., 2014). On the left side of the canvas, all the products and services of Dyme’s value proposition are listed. I have outlined how the product can help alleviate pains by eliminating undesired outcomes. The gain creators are also outlined. These explain how the product will create the desired positive outcome. Each is prioritized (and numbered from 1 to 3) in a similar fashion to the customer profile. The next step in this process is to check if the value proposition fits the customer profile. Is the product a pain reliever and/or a gain creator for the customer? Are customers’ jobs, pains, or gains addressed? A check mark has been put against each of the pain relievers and gain creators if they find a customer job, pain, or gain.

There are two common mistakes. The first is mixing several customer segments into one profile. Dyme’s aim is to focus on “The Runner” but during this process I developed two VPCs based on two different customers. This allowed Dyme to clearly set a different acquisition strategy when launching their product on the market. The “Follower” is the second customer described in chapter 10. This person has different objectives and pains. Therefore, I developed a second VPC to have a clear image of this customer. The second mistake is focusing on

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functional jobs only and forgetting about social and emotional jobs. Sometimes, social or emotional jobs are even more important than the visible functional jobs for each person.

28 Figure 10 Customer segment 'The Runner'

29 Figure 11 Customer segment 'the follower'

30 Outcome VPC After developing the value proposition canvas, the objective was to verify whether Dyme was addressing what matters to the customer. In our case, the pain relievers and gain creators fit our customer job, pain, and gain in both segments. The checkmarks signify that Dyme’s app relieves pains, creates gains, and directly addresses one of the customer’s jobs, pains, or gains. Thus, we can state that the solution that Dyme provides adds value to the customer. In fact, market analyses show that the selected customer cares about these jobs, pains, and gains. Furthermore, it proves that I have designed a value proposition that addresses those jobs, pains, and gains. Blue Ocean – From theory to practice by developing the strategy canvas As mentioned, the strategy canvas is a tool that helps us to understand the competition and create superior value to Dyme’s rivals in line with the blue ocean strategy. In this chapter, a strategy canvas is used to analyze the competition. This strategy canvas is essentially a line graph that plots functions and/or factors against importance for the company. After plotting functions, the next step is to overlay the (potential) competitors and compare value creation. (Mauborgne & Renee, 2005) This enables the company to identify where value is created in its customers’ lives and allows it to improve its functions if necessary. In Figure 9, the horizontal axis in the strategy canvas captures the range of factors that an industry competes on and invests in, while the vertical axis captures the offering level that potential buyers receive across all of these key competing factors.

According to Chan and Mauborgne (2005), if one wants to set a company onto a strong, profitable growth trajectory in the face of these industry conditions, then one should not opt for benchmarking competitors and trying to outcompete them by offering a little more for a little less. Research has found that customers can scarcely imagine how to create an uncontested market space (Chan Mauborgne, 2005). Their insight also tends toward the familiar “offer me more for less.” What customers typically want “more” of are those product and service features that the industry currently offers.

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Figure 9 shows that Dyme’s strategic move on differentiating itself from its competitors is based on five key factors: Ease of use of the app, customer data as a result of open banking, the number of actions needed to switch or cancel, use of machine learning to analyze behavior and offer best solutions, being the only company that offers a one-click switch solution. Customers can switch manually or use the auto-switcher, which makes it possible to switch utility and insurance providers annually using “one click” at the end of the year. Figure 12 Strategy Canvas Ease of use of app: According to Google research (2016), the number one most valued factor in an app for customers is ease of use and navigation. Customer data: By connecting to its users’ bank accounts, Dyme is able to provide a clear overview of subscriptions. The app leverages spending data to detect better contracts for users’ current subscriptions.

Number of actions needed: The switch solution offered by Dyme automates the entire switching process of customers’ current subscription, so customers do not have to do it themselves. This saves a lot of time. Use of machine learning: The smart technology automatically recognizes and categorizes all of the customers’ recurring costs (subscription costs). Le ve l Factors of Competition BLUE OCEAN MOVE

32 One-click switch: Customers can manually switch or use the auto-switcher to switch utility and insurance providers annually using “one click” at the end of the year. To fundamentally set a strategy that allows Dyme to be successful Dyme must focus from competitors to alternatives, and from customers to noncustomers of the industry. In this case both customers (early adopters) and non-customers (prospect users) play a significant role in growing and scaling the company.

Customer segmentation

In chapter 9 the attractiveness of each market segment is identified and analyzed, and the most attractive segment to enter is selected. The next step of the process is to segment the customer for the chosen markets. As mentioned before, the market is segmented by dividing the target market into several groups and/or segments based on factors such as geography, demographics, psychology, and behavior (Kotler & Armstrong, 2017). The segmentation is also done by sketching out a customer profile, which has the aim of uncovering what truly drives people, rather than just describing their jobs, pains, and gains. This is done by developing the value proposition canvas in chapter 10. By sketching the customer profile and fitting this to the value the company can create, the market is segmented not only according to geographic, demographic, psychological, and behavioral factors, but also according to all those with a pain that needs to be solved (Osterwalder & Pigneur, 2014, p. 31). Having identified the markets and chosen to focus on the segments of energy supply, telecoms provision, and health insurance, our next step is to identify the target customer. Dyme’s first focus will be a niche market segmentation. According to Armstrong and Kotler (2017), a niche is a more narrowly defined group, usually identified by dividing a segment into sub-segments or by defining a group with a distinctive set of traits who may seek a special combination of benefits. These benefits are set by the value proposition map.

The market has been divided into meaningful and measurable segments according to customer need, past customer behavior, and demographic and psychological factors.

Primary target customer, “The Runner”: The geographical focus will be mainly be the Netherlands in the first phase. The target customer will be 20–40 years old. The Runner has

33 highly digital skills but lacks administrative skills. Our users are customers who want peace of mind and no stress with regard to administrative issues. Their time is precious to them. We will mainly focus on early adopters who already switch subscriptions on a yearly base to save on costs, and more specifically customers who already search websites that compare subscriptions and that support switching and cancelling them. Furthermore, these users are willing to share financial data with third parties. This customer is a “price-conscious buyer” seeking the lowest possible price and best offer. Our segmentation dimension will mainly be the behavioral one, where users are people who search for a benefit and are “regular users” who want to be introduced to products and services that could help them attain their goals. In short: The Netherlands – 20–40 years – Peace of mind – No administrative stress – Early adopter – Already switches subscriptions – Price-conscious buyer – Benefit-oriented – Regular user. Second customer segment, “The Follower”: the focus will also be on the Netherlands in the first phase and the target customer is also 20–40 years old. The Runner has highly digital skills but lacks administrative skills. Our user is the customer that wants peace of mind and no stress about administrational issues. He cares about his precious time. These customers are thinking about switching subscriptions but encounter many obstacles to doing so. Not only are they thinking about switching but they have already tried to do so several times without success, either because of time or information overload on the Internet. These are “prospect users” who will need to learn why our product is the better option. In short: The Netherlands – 20–40 years – Peace of mind – No administrative stress – Thinks about switching often – Price-conscious buyer – Benefit-oriented – Prospect user Third customer segment: the focus will also be on the Netherlands in the first phase, and the target customer is also between 20-40 years old. These customers are “non-users” and might need to be made aware of the fact that they have problem or pain point that Dyme can easily solve for them. Creating awareness of these customers’ pains and providing a pain pill will lead to a wider customer base. These customers value their time

34 In short: The Netherlands – 20–40 years – Peace of mind – No administrative stress – Non-User Persona & Customer Journey Personas As stated before, a persona is an archetype, a composite picture of the real people who buy, or might buy, products like those a company sells (Revella, 2015). This person is a fictional description that represents a target customer or user group for a product, and typically presents information about demographics, behavior, product usage, and product-related goals, attitudes, and tasks. The design of persona plays a crucial role in mapping the customer journey. The persona is the starting point, and represents the customer whose journey is being mapped in order to be able to tell the story. In addition, three value components are added to this persona. Sweeney and Soutar (2001) stated three dimensions of perceived value to understand why people buy a certain product or service. • Functional value: Get things done, do it better, find the right tool • Emotional value: Make us feel good, self-worth, safe and protected • Social value: Make us look good to others, recognition, be part of greater whole Based on the customer segmentation in chapter 11 two personas are described: The Runner and The Follower. We see Daan (The Runner) in Figure 10 as a fictional archetype who is meant to represent a marketing consultant. The graphical outlines give us information about Daan’s profession, daily frustrations, motivation, and means of staying connected and up-to-date with the latest trends. Daan’s goal is to always be on-trend, and he becomes frustrated if he is using outdated solutions for his daily tasks. He wants to be an influencer and to show off to his peers that he is a frontrunner. He does this by staying connected on social media and attending technology events. The striking thing about Daan is that the social aspect of buying this product is more important than its functional value. In Figure 11, we see Naomi (The Follower) a fictional archetype who is meant to represent an interior designer. Her goal is to find an efficient way of doing things, to have peace of mind

35 and no stress about daily administrative issues. She gets frustrated when wasting time on difficult websites and apps to solve a problem. Her motivation is to save time and money. In contrast to Daan, with Naomi the emotional and functional aspects are more determinant for buying the product.

36 Figure 13. Persona Daan ‘Does this new tool make anything I already do easier and faster, or is it executed in a clearer way compared to already existing solutions? Name: DAAN. Age: 29 years old Profession: Marketing consultant Goals: Want to feel unique, want to spend less time

on administrative issues, being on top of the latest fad in the tech world, showing off to his social environment of his purchases, ‘price-conscious buyer’ looking for lowest possible price and best offer.

Frustrations: Wasting time on difficult websites and applications, unnecessary costs, and

outdated solutions.

Motivation: Being an influencer, showing he is up to trends, save money and time

How I stay connected: LinkedIn, Twitter, Facebook, Tech events, Peers and internet research

FUNCTIONAL SOCIAL Emotional

37 Figure 14. Persona Naomi The Customer Journey The customer journey map will help us to identify gaps and points in the customer experience that are disjointed and painful from a user design experience. This will help us to have a clear view on how to improve our product/service to solve customer pains. Feelings and experiences can change over time, especially in the current, fast-changing technological environment. This should be a reminder for the company to keep analyzing and solving customer pains through the process of fulfilling the job that they want to fulfil in their daily lifes. This could be a simple add-on to the existing app solution that Dyme provides to its customers. ‘Does this new tool help me save time and money, as well as reduce frustration switching and cancelling all my subscriptions?’ Name: Naomi Age: 30 years old Profession: Interior Designer Goals: Find efficient way of doing things. Spend less time on comparing websites and subscriptions for better deals. To have a clear overview of subscriptions at all time, peace of mind and no stress about administrational issues. Frustrations: Wasting time on difficult websites and applications, unnecessary costs because of being too late cancelling subscriptions Motivation: Fear of paying unnecessary subscriptions, saving money, save time How I stay connected: LinkedIn, Facebook, Peers and Social networks

FUNCTIONAL SOCIAL Emotional

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The process is separated into five elements: Awareness, Consideration, Decision, Delivery/Use, and Loyalty

39 Figure 15. Customer Journey Map

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Market Opportunity

Based on the market analyses and customer segmentation, I evaluated the market opportunities for Dyme. The assessment criteria to test the market and each segment for Dyme were developed by examining the market size, number of people who switch per segment, growth rate per segment, and profitability indicator per segment, based on the revenue model (market opportunity). In Table 1, these measurements have been done. All the data are obtained from case studies and research done by financial institutions, industry research and reports, and public statistical sources (centraal bureau statistiek).

Based on the market analyses, the market potential has been determined for all three target markets: energy supply, health insurance, and telecoms provision. In addition, I divided the market into meaningful and measurable segments according to customer need, past customer behavior, and demographic and psychological factors. The two target customers are The Runner and The Follower. The main characteristics I identified from the trend-analyses were that The Runner is a customer who already switches, whereas The Follower is thinking about switching subscriptions. The market opportunity is divided in three parts: 1. Market opportunity for The Runner segment 2. Market opportunity for The Follower segment 3. Market opportunity for both customer segments Table 1. Market switchers, “The Runner” Market segment Total size Age group (20–40) Share date 61% Percentage Switch subscription Segment size Market share Dyme 10% Referral income per user Market opportunity in segment € Potential yearly revenue Energy supply 7.7 million 886,000 540,000 17% 92,000 9,200 €70 €6.5 million €650,000 Health insurance 17.2 million 4.2 million 2.6 million 5.4% 139,000 13,900 €35 €4.8 million €480,000

41 Telecoms provision 12 million 1.8 million 1.1 million 20% 220,000 22,000 €30 6.6 million €660,000 Total 6.8 million 4.2 million 451,000 Table 2. Market thinking about switching, “The Follower” Findings market opportunity What is most striking is the fact that there is a high potential market opportunity for Dyme in the non-customer segment (The Follower). The non-customer outnumbers the customer (The Runner) by 2.5. Dyme cannot profitably pursue every market in the beginning, so it is key to determine how Dyme can most effectively differentiate the brand and attract the customer that best fits its offer and provides the most profit. This involves evaluating each market segment’s attractiveness and selecting
one or more of the market segments to enter. The telecoms market offers the greatest potential in comparison to the two other market segments. This is primarily based on the two selected customer segments. Market segment Total size Age group (20-40) Share data 61% Percentage orientating to switch subscription Segment Size Market share Dyme 10% Referral income per user Market opportunity in segment € Potential yearly revenue Energy supply 7.7 million 886,000 540,000 17% 92,000 9,200 €70 6.5 million €650,000 Health insurance 17.2 million 4.2 million 2.6 million 14.9% 387,500 38,750 €35 13 million €1.3 million Telecoms provision 12 million 1.8 million 1.1 million 60% 670,000 67,000 €30 20 million €2 million 36.9 million 6.8 million 4.2 million 1.1 million 110,000

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Channels

As stated before, the last part of the go-to-market strategy relates to how Dyme is going to engage with its customers, deliver value, and create strong relationships. Once the segments have been narrowed down, the next step is to determine what channels to include in the user acquisition strategy for building awareness, driving downloads, and encouraging sharing. After segmenting the customers and the market, it is necessary to determine which channels Dyme should invest its resources in to accomplish its goals. The goal is not to simply identify the channels but also to ensure that the most effective channels are chosen in order to reach customers. In addition, based on the nature of the target customer, the channel strategy will differ in each segment. When considering each channel, it is important to keep in mind Dyme’s goal for the first year, the second year, and so on (for example, hitting 10,000 users vs 100,000 users or even more) and the resources that can be made available to invest in the different channels. The channels can be analyzed and measured using three dimensions: 1. Cost—how many resources does this channel consume? 2. Scale—how many users will this channel attract? 3. ROI—return on investment (conversion rate) These three dimensions will assist the marketing team to choose the channel that is aligned with the goals and strategy of the company. For every channel, it is desirable to define key performance indicators (KPIs). By setting KPIs, the marketing department can manage and evaluate if the different channels are successful at reaching targets. For example, SEO KPIs include search volume and conversion rate. Social media advertisement KPIs include impression, cost per click (CPC), and conversion rate.

In order to decide on the most appropriate channel strategy for the different segments (user acquisition), I wanted to understand the journey that app users take, from inspiration to discovery, to download, to frequency of use, to the elements that create loyalty, and/or abandonment. Research done by Google (2016) provides insight into how people find, use, and engage with apps. In addition, the customer journey map—that is developed helped to

43 better understand the interactions and different touchpoints, and how customers go from the inspiration phase to actually using the application and sharing their experience with others— this research provides a better understanding of how people discover, use, and stay engaged with apps. Ultimately, it helps us to utilize these different channels. Some key findings that are relevant for this project are pointed out below. See the appendix for the full report. Important key findings from different studies: § To discover new apps, people turn to those they trust: friends and family. § App use or mobile site use depends on the task. For managing finances, 79% use the app compared to 30% who use the mobile website. In contrast, for searching the web, 29% use the app compared to 79% who use the mobile site. § When deciding whether to install an app, price and privacy are the most important factors. § Simplicity of use is key. Users find ease of use and ease of navigation most valuable, followed by new features and personalization. • Content marketing costs 62% less than traditional marketing. • 93% of online experience begins with search, but 75% of users never scroll past the first page of Google, and 78% of people use web search in order to research products and services prior to buying them. • Facebook is still the number one mobile app acquisition channel. These statistics show the proven power of referral programs: • When referred by a friend, people are four times more likely to make a purchase. • Referred customers' lifetime value (LTV) is 16% higher when compared to non-referred customers. • Customers acquired through referrals have a 37% higher retention rate, and 81% of consumers are more likely to engage with brands that have reward programs. • Referred customers have an 18% lower churn than customers acquired by other means. • One can expect at least 16% more in profits from referred customers. 83% of customers are willing to refer after a positive shopping experience.

44 • Customers are four times more likely to share when the sharing calling to action (CTA) is integrated into their journey, not located on a hidden landing page somewhere on the website. • When a CTA appears on a post-purchase page, customers are 16 times more likely to share. • 77% of users discover new apps from viral features such as word of mouth. Figure 16. Top channels for mobile application acquisition Sources. (Duskin, 2017) (LaBerge, 2018) (google, 2016) In Figure 13, the different channels to enter the market are shown and acquire users as quickly as possible, with two different modes: organic and paid channels. As stated before, the goal is not just to identify the channels, but to ensure that Dyme chooses the most effective channels to reach its customers. A clear strategic choice and evaluation of each channel is mandatory since not every channel works for every customer.

45 Figure 17. Channels to enter the market for Dyme

Organic +

•Friends & Family •Dyme app •Landings page website •Email •App store optimalization •Content marketing/Community •Partnerships •SEO •Media (blogs) •Getting featured by app store

Paid

•Social Media •PR/Influencers •Google add words •(video) Advertising •Paid Referrals •Events

= User

acquisition

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Key findings & recommendations

The outcome of the market analyses shows that the subscription business model is booming. The subscription economy will grow further, enabled by technological developments, shifting consumer preferences, and favorable regulation for product design. Growth is expected to be an additional 190 billion euros yearly. The average number of subscriptions per individual and household is expected to grow by at least 20 percent in 2018 and to continue to increase in the medium term. 61% of all Europeans are willing to share their financial data with third-party providers, indicating a shift in perceptions of financial privacy. Trends in the Dutch market show that 44% of all Dutch people forget to cancel their subscription due to automatic billing, at least 53% of people aged 18–35 forget to cancel at least one subscription due to automatic billing, and 40% of consumers pay for at least one subscription they want to cancel. In addition, people aged 18–35 have high digital skills but lack administrative skills.

The goal of these analyses was to examine and identify market opportunities in three main target segments: health insurance, energy supply, and telecoms provision. As stated before, the following findings from the analyses are used to write the recommendations. Key take away market analyses • Health insurance: In 2018, five and a half percent of all people in the Netherlands plan to switch their health insurance. In addition, 14.9% are thinking about switching to another health insurance provider. People switch to save costs, and the reason some people do not switch is because of the significant effort involved. • Energy supply: Every year, 17% of all households in the Netherlands (central bureau statistiek) switch energy supplier. ACM expects that the number of households planning to switch is going to double in the upcoming years. People switch to save costs.

• Telecoms provision: One out of five people (22%) switches telecom subscription. Fourteen percent of people find their subscription expensive do not switch to another provider (potential). Five percent of all people thinks it is too complicated to switch. The reason people switch is to save costs.

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Two customer segments have been identified from the market analyses. These are the people who already switch (The Runner) and the people who are thinking about switching (The Follower). Being aware of this separation made the segmentation process easier. In both segments, Dyme’s app relieves pains, creates gains, and directly addresses one of the customer’s jobs, pains, or gains. Thus, we can state that the solution that Dyme provides adds value for the customer, and the market analyses show that the selected customer cares about these jobs, pains, and gains. In addition, they prove that I have have designed a value proposition that addresses those jobs, pains, and gains. § The telecoms market has the greatest potential compared to the two other market segments. Based on the total market size, the health insurance market is the largest market, with 17.2 million insurance policies. However, after the market is narrowed down to its customer segments and the size of these segments, the telecoms market is twice as large as the other target market, with a market opportunity of €26 million compared to €18 million and €12 million. § Most striking is the fact that there is a great potential market opportunity for Dyme in the non-customer segment (The Follower). The number of non-customers is 2.5 times greater than the number of customers (The Runner), with a market opportunity of €40 million compared to €18 million. Dyme’s strategic move on differentiating from its competitors are based on five key factors: one-click switch, machine learning, ease of use, customer data as a result of open banking, and the number of actions needed to switch or cancel.

Developing the customer journey allowed to identify the right channels. It helped for understanding the journey that app users take to specifically make the best decision about the channel strategy (user acquisition). From inspiration to discovery, create awareness, and to download. Based on the customer journey mapping process, new organic and paid channels have been identified. To enter the market, it will be important to divide their efforts. There are three phases: the baby phase (0–3 months), short-term (3–12 months), and mid-term efforts (12–24 months).