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How BauernPost found their USP to succeed in a highly competitive quick commerce market by performing landing page tests with Horizon.
BauernPost is a German quick commerce/delivery startup that allows customers to order groceries from local farmers straight to their door. Customers can select their region on the website and BauernPost will show all the available products in the respective area.
BauernPost was still in the ideation phase and had gained initial interest in their concept through qualitative market research. However, truly validating their idea and ensuring sound product-market-fit meant that the startup needed a way to gather a significant amount of data from potential customers for their idea.
Based on qualitative market research and looking at key players in the industry as well as consumer preferences, the team identified three drivers for success, i.e. potential value propositions to focus on:
BauernPost needed to identify the value proposition with highest market demand to ensure a successful launch.
With the increasing strength of other players due to huge funding rounds and their fast expansions, BauernPost needed to understand which of these value propositions would put them in a unique position to really nail their go-to-market by providing a distinctive value-add for customers. Given the market’s strong growth rates, there was an urgent need to figure out the right value proposition extremely fast. Hence, the situation of BauernPost required a simple test setup to conduct their experiments with reliable data, to actually make a difference against the competition, in no-time.
Most of the time, quick commerce companies have a value proposition that is focused on quick delivery in “x” minutes or under. Consumers tend to have the opinion that quick commerce has to focus on fast delivery times, and this opinion was also the most prominent one during the qualitative market research efforts conducted by BauernPost. Therefore they had a strong tendency towards the value proposition focused on fast delivery (Speed).
Given the strong and enormously fast growing competition, the team needed to understand whether there could be another factor (Transparency or Community) that is equally or more important for consumers regarding grocery deliveries, in order to offer a unique value proposition in comparison to the competitors. To achieve this in a more reliable and less-biased manner than interviews and other qualitative research methods, they intended to perform a landing page test, gathering more robust and unbiased behavioural data of potential grocery delivery customers.
To find the value proposition that really hits the nail on the head for maximum market demand, the startup conducted landing page tests (also called fake door tests or facade tests) on Horizon, consisting of three customer journeys, each of them with a clearly distinctive communication of one specific value proposition (Speed, Transparency, Community).
The test consisted of three landing page variants and three ad campaign variants. It was imperative that each landing page and ads of each journey had only slight differences between them, with the major difference being the respective value proposition displayed in the header of each. The reasoning behind this is to ensure that market demand is being measured for just the value propositions. The ad creatives also had to portray the different value propositions, as this is the defining factor of whether or not a visitor will visit the page or not.
We have created a best practice piece for you about what you need to take care of when doing such multivariate tests, you can find it here.
Run three Facebook ad campaigns that represent each variant, i.e. a certain value proposition. Acquire unique visitors and gather data such as CACs.
Create three identical customer journeys including ads and landing pages with the only differences being the ad visuals as well as landing page header images and copy. It is crucial to create clearly distinctive visuals and copy for each value proposition, so that you’re collecting reliable data. Connect the landing pages and ads to Horizon
Watch Horizon’s performance dashboard aggregate and interpret all metrics and KPIs, and provide three Customer Demand Score’s for each variant.
Generally, all three landing page variants had a high Customer Demand Score on the Horizon dashboard, indicating that they had found a gap in the market and potential customers wanted to use their platform in general.
Much to BauernPost’s surprise and opposite to their assumptions based on initial qualitative research, the value proposition that had the most demand was not for fast delivery at guaranteed high speed. Instead, the winning proposition was about promoting and supporting the community of producers, suppliers and most importantly giving back to the local farmers by ordering products directly from their offerings.
With these results at hand, gathered from real market data, the team could go-to-market with a more targeted communication approach, a clearly distinctive value proposition against competitors. They could also achieve higher customer retention, as the following iterations would not be about which value proposition to focus on, but just small iterations and improvements of their service, focused on community.
Focusing on the value proposition that is more distinctive from the competition and, more importantly, the one with the highest market demand as outcome of the landing page test on Horizon led BauernPost to grow three-digit numbers of users month-to-month, revealing the strong connection between market validation data from Horizon and actual performance data post-launch. The invaluable knowledge that the value proposition with the highest demand was not the most common one for delivery models has given BauernPost a competitive edge in an ever-growing industry.
Bauernpost grew three-digit numbers of users month-to-month, revealing the strong connection between market validation data from Horizon and actual performance data post-launch
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