PlentyofFish (POF) Thomas Allard was looking forward to reporting the most recent numbers to the innovation team
Question:
PlentyofFish (POF) Thomas Allard was looking forward to reporting the most recent numbers to the innovation team at PlentyofFish (POF). Thomas knew it was important to evolve the product, something the company had done since starting in 2003. The company had met the challenge of new business models entering the online dating marketplace, a hyper-competitive environment among entrenched players, and of the continually evolving consumer, who was looking for the next big thing in dating services. Importantly, innovation at the company centered on two things: motivating the current customer base to stay active in their utilization of the website, and providing motivation to new customers to give the online dating service an initial trail. Online Dating Online dating is a personal introduction system where individuals can present themselves to others over the Internet with an end goal of developing a friendship, a romantic relationship, or a sexual encounter. Services that facilitate online dating typically provide unmoderated matchmaking by allowing individuals (i.e., clients) to share personal information (e.g., gender, religion, occupation, personal interests, body type) in an open market-place. By providing personal information, the services enable the client to build a profile in the system and search the service's database for other client profiles that would be of potential interest. Some online services provide guidance to clients on which profiles in the system would be the best match for their stated interests. For example, Match.com utilizes client responses to the Myers-Briggs personality test to help align clients into successful matches. Other online dating companies specialize in building a client base based on specific interest or client background. For example, Jdate.com is targeted to members of the Jewish community, Shaaid.com to those with an Indian ethnic background, and Ashley Madison to married individuals who are looking for extramarital relationships. Where some of these dating service charge a monthly fee for services, other provide free registration and garner revenue from advertising. Importantly, while the business models may differ, these sites all enable clients to access their service through personal computers, tablets, or smartphones. Further, most sites in the industry allow members to upload photos or videos of themselves, and some enable webcasts, online chat and message boards. Appendix A includes PC Mag's review of the best dating apps for 2021. Plenty offish (POF) is one of the world's largest online dating services and was started in Canada by Markus Frind. He identified the potential for a free option in the growing market for online dating in 2003, and he was able to successfully build a business model that generated revenue through advertising and optional premium services. This approach, known as a freemium business model, gave basic services to the client for free and offered an upgraded membership where the client could see when his or her profile was viewed and whether message were read or deleted. Since its inception, POF had been at the forefront of new approaches and tactics applicable to the online dating market. As one example, in 2009 POF launched a contest with Lada Gaga allowing single clients to go with another POF client to meet the singer during her concert tour. POF has also appeared in numerous music videos of artists, ranging from Kesha and Akon to Natasha Bedingfield, in an effort to leverage positive celebrity associations in building the brand. On the technology front, POF was one of the first companies to launch mobile apps for its services in 2010 for iPhone and Android. By 2014 the company indicated that it could attribute 85 percent of its traffic to mobile, with the number continuing to grow. In 2015, the company was sold to Match group, which is also the parent company of Hinge, Tinder, and OkCupid. Current Challenge and Opportunity Over the past few years, new entrants to the online dating service marketplace have begun focusing on opportunities provided by the shift to mobile devices. Companies like Tinder and Grinder capitalized on the ability of mobile to provide real-time information on client geographic location and thus enable instant interaction between clients. These brands focused specifically on the sexual "hook-up" opportunity this technology could facilitate and directly played down the notion of a dating relationship that might surface from immediate client interaction. This new approach to technology application posed a potential challenge to the POF business model. To address this new business challenge, POF added a new feature called Conversation Powers, which utilized voice messaging options, video calling, and the opportunity to share pictures while chatting. Of course, the COVID-19 pandemic has also impacted the online dating industry. National lockdowns made it almost impossible for many around the world to get out and date. For others not subject to lockdowns, fear of illness has made them overly reluctant to physically date during this time. As a result, the use of online dating apps has soared. Virtual dating has become the "new norm" for singles with the top apps gaining 1.5 million daily active users this year alone and new niche apps have also emerged. Stats provided by one popular app identified that, compared to pre-pandemic levels, its Canadian clients increased the number of messages sent by 33 percent, increased the use of in-app audio and video calls by 70 percent, and the average time spent on those calls doubled from 15 minutes to 29 minutes. Online dating apps have been modifying their in-app features to cater to emerging consumer needs during the pandemic. For example, POF announced it would launch a livestream video chat option for clients in March 2020. Bumble, a competing app that requires women to make the first move, launched a suite of new tools including a get-to-know-each-other questions game, an audio notes feature, and a virtual dating badge that tells potential matches whether someone is open to video calls, or meeting for physically distanced dates. Bumble has also created a partnership with Airbnb Experiences, which allows its clients to have a date with a global flare such as cooking Thai curry with a chef in Bangkok. Interestingly, behavioral scientists have recognized a change in how people are approaching online dating. Pre-pandemic it was common for people to use these apps to continually move from person to person. But as social restrictions came in, people began spending longer getting to know each other in the virtual world before meeting. This has meant that when they did finally get to meet in person, the encounter carried more importance in their minds. According to online dater Jasmyn Ellis of Vancouver, "It reminds me of being in junior high and high school again. I'm getting butterflies just about meeting. It's not really an option to be physical right now, so there is this build up to really get to know someone. It's like puppy love all over again." Thomas Allard is excited about the opportunities, but also has a nagging feeling that the positive industry trends may not last. He knows he carries most of the responsibility for providing what his customers want and he does not plan to disappoint.
Think about what people who utilize online dating services want. What consumer needs do these services meet? Use Maslow's hierarchy of needs to structure your answer, identifying and describing the various types of needs consumers of online dating services might possess.
Systems Analysis And Design
ISBN: 978-1119496489
7th Edition
Authors: Alan Dennis, Barbara Wixom, Roberta M. Roth