Gumtree

The business challenge

Gumtree is Australia’s premier online free classified advertising service. Although it had 94% aided brand awareness, growth had plateaued over the last 18 months due to a decline in new users. Our brief was to determine ways to kick-start growth using Gumtree's nine million strong customer database. Key objectives were:

  1. Drive responses in terms of placing ads or replying to ads.
  2. Generate incremental revenue though customers paying to increase the visibility of their ad.
  3. Increase the number of repeat visitations (which drives advertising revenue).

Insight

A database of 9 million buyers and sellers and a dazzling number of categories on its site presented a huge opportunity.

Solution

A series of exploratory data briefs were designed to understand how customers used Gumtree. Questions asked included: How often did they use it? When did they use it? Did customers both buy and sell? What categories did customers buy in? What did that tell us about their interests or their current life stage?

The insight derived from this analysis, combined with an extensive review of the customer journeys for both Buyers and Sellers, was used to create a timely, relevant, multi-channel communication programme designed to deliver against our objectives.

This solution went beyond communications and is being used to alter the very fundamentals of the customer experience. Site navigation built around life events is one such proposal being reviewed.

Results

The response to date from initial campaigns has been strong:

Email open rate

28%

Email click to open rate

29%

Total revenue generated through CRM in 2015

16.57%

Additional replies to ads in 2015

280,000

What’s next?

Head back to the Work page to choose again

The Work

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