After our successful public launch in 2021, we noticed a few significant drop-offs in our onboarding flow.
In the sign-up process, we observed a 5% drop-off rate when customers were asked about their net income, and approximately 10% dropped off when asked for their phone number. We also received feedback questioning the need to provide both email and phone number upfront before accessing any properties.
Furthermore, less than 20% of those who signed up actually proceeded to open a brokerage account with us. This meant that 80% of interested customers did not convert into actual investors.
Through beta interviews, we discovered the top three qualities our investors valued the most: the security of their personal data, the credibility of the platform, and the quality of the investment opportunities.
Since we had already addressed the security concern and had limited control over the real estate deals, we focused our attention on enhancing the credibility of the platform.
Based on the drop-off points, we made two assumptions:
This hindered customers from sharing sensitive personal information.
Even after viewing our offerings, customers didn't feel motivated enough to open a brokerage account.
After extensive internal discussions, we devised strategies to tackle both objectives:
In collaboration with our marketing team and external partners, we concluded that our marketing efforts primarily emphasized the excellence of our offerings without addressing the "why" behind choosing LEX over competitors or investing in commercial real estate. To rectify this, we shifted our focus from promoting our offerings to educating customers about LEX and the benefits of commercial real estate investment.
To avoid overwhelming customers, we adopted an incremental approach to education, ensuring the content provided synergy and fostered trust.
To enable our marketing team to control the content displayed in the Learn tab and repurpose it for blog posts and marketing videos, we established a robust system. Leveraging the Webflow CMS, we configured our existing collection to provide data through the Webflow API. Detailed documentation was created to enhance transparency for both engineers and the marketing team.
Internally, we acknowledged the selectivity of our offerings, resulting in a limited number of properties listed on our platform. However, customers perceived this as a disadvantage when compared to other platforms.
To address this, we visualized our due diligence process, highlighting the significant efforts our team invested in identifying the best properties for our customers.
This approach transformed a negative perception into a positive one by showcasing both the credibility of our platform and the quality of our offerings.
To determine the most effective in-product incentive, we conducted A/B testing to identify the starting tab that generated the highest conversion rate. Unlike a conventional A/B testing that randomly assign customers to one of the testing flows, we let customers decide their ideal flow from all possible ones. We believed an active choice speaks the customer’s preference louder. Hence, we developed the Choose Your Own Adventure feature.
With the launch of CYOA, we discovered that nearly half of our customers preferred to learn more about LEX and real estate before exploring the available properties. This finding reinforced our learn tab strategy as the right path to follow.
We leveraged this insight to further enhance our learn tab, creating a public learn center on our website to provide non-sign-up customers with the opportunity to expand their knowledge about LEX and commercial real estate.
The implementation of the learn tab and a more personalized onboarding journey resulted in a substantial increase in both the sign-up-to-brokerage conversion rate and the average deposit per account.
This is the third case study of the LEX product series.
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