Angie’s List Harvard Case Solution & Analysis

  • Angie's List currently has a three-tier set of service offerings for members. What is your evaluation of that strategy? 

Angie list, after facing a sudden decline insales, planned to devise a new strategy which would sustain the dropping sales and popularity. In order to do so, the company segregated the market into three main tiers namely Basic, Plus and Premium. These three tiers carried different sets of offerings and the level of services. The bifurcation of market and customer into the three tiers allowed the company to cater the customers and target the needs accordingly.The bifurcation of the market allowed Angie’s list to setits offering and develop a marketing plan according to the behavior of each group. Since the unified strategycould not harvest generate more benefits and additionally may lead to dissatisfaction of customers with the threat of failure of the single strategy, due to these reasons the company developed a different set of strategy and business plan for each segment. The strategy to divide the market in tomicro group proved to be a good strategy as it allowed the company to understandthe needs, demands and behaviors of certaincustomerbase. AsAngie’s list hasmany types of customers looking for different solutions and type of data, it proved to be a precise solution which was time saving and shared the content only relevant to customer. Moreover, it offered a competitive advantage to the customers, because the customerswith premium account received additional service with guarantee of work and offered a more in-depthdata than those who were using basic account.The strategy helped the company in maintaining itsbrand image as a solution provider or data provider to different segments. The three tier strategy enabled the company to tap larger markets and thus,increased its market share, as well as it enhanced its brand image and brand value.

Angie’s List Harvard Case Solution & Analysis

It additionally helped the company to gather a large amount of data from all kinds of clients, making the data base authentic and reliable. In addition to this, the three-tier strategy enabled the company to expand its offerings and put more focus on each and every tier, resulting in morecustomer satisfaction through experience and product offerings by detailing the very micro-scopic issues. Moreover, the three tier strategy allowed thecompany tomanage the customers and analyze where itstoodand what kind of clients it had on board. This allowed the company to forecast the sales of next year accordingly, as well as, it helped he company gauge its sustainability factor which shaped its business strategy in future time.

Lastly, it helped the company manage its customers and offer exceptional customer service on the basis of data. Itmaintained the experience of the customers and curtailed the offering with continual innovation in tiers that could specifically target the focused audience.Hence,with the help ofthis strategy, the extent of error and wrong strategy to tap and retain the customers was reduced................

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