FOLLOW ON: Understanding the Matterport/MSP 3D Scan Pilot

This is a follow up post to this earlier thread

Hi

Thank you all for your feedback @Mike, @Phil, @Jorge, @Colin, @Marcus, @Chris, @Chad, @Kevin, @Sean, @Nat, @Adam, @Eric, @Doug, @Mike, @Adam. We appreciate you sharing your concerns, and are paying close attention to your comments. We paused the SF pilot yesterday.  

I wanted to provide additional information and transparency to our community. We are in constant communication with our MSPs and hear a very consistent set of concerns:

  • Managing demand generation (getting new business) is challenging
  • The free leads that Matterport has been sending are not converting very well (the prospects are not ready to buy services) and there is not enough volume. 
  • There is difficulty landing larger multi-property deals with bigger companies, especially those that are spread out across regions or geographies, and in new verticals
  • Core business operations are neither what we do best nor what we want to focus on
  • For MSPs who are successfully driving scan business, there is difficulty scaling because of limited time to add operators while developing a portfolio of business

As we build the Matterport ecosystem, our goal is to help MSPs build scaleable, growing businesses. Our current programs are not enough, so we must test new ones. The SF pilot was one of several small-scale programs designed to zero in on some of these core concerns. For this pilot, we partnered with MSPs who  were contracting out and managing scan services, while Matterport was taking on the cost of digital marketing, operations and billing (things we were told are time consuming and growth blockers for MSPs).

This specific pilot was focused on understanding (i.e. market testing) a few key concepts:

  1. How to better scale an effective demand generation program that drives business directly to MSPs?
  2. How do we find prospects who are ready to buy/ Does providing price and package info help?
  3. How to reduce the overhead costs of MSPs by reducing marketing and sales expenses (Business economics)?
  4. How sensitive are potential leads to pricing (Price elasticity)?

Based on prior market research, we believe that the amount of business done by our MSP ecosystem can increase - in number of jobs and profitable dollars - if we better understand the business economics. Advertising a full-service offering up front, to a small localized target audience in the SF Bay Area, was one such test to see whether it impacts conversions and works for MSPs.

We believe that with our brand recognition and ability to generate awareness and website traffic globally, we are able to provide something more valuable than leads to our MSPs. We are able to deliver orders that cost the MSP $0 in customer acquisition expenses. Our goal was to test whether we could do that cost effectively.

We also believe that our current method of asking people for their information for some unknown set of services and pricing is not as effective as it could be. (Nonetheless, we are - and have for some time - been running paid advertising campaigns dedicated to scan demand internationally, which are driving many of the leads that you are seeing, and we continue to test and grow this program alongside other tests.) This pilot was testing whether we can deliver more value to MSPs by better engaging potential buyers, and thus increasing the volume of jobs we send MSPs.

I want to emphasize that Matterport does not intend to compete with our MSPs by hiring our own staff to capture properties. We recognize that MSPs are an integral part of our ecosystem, and we’re committed to supporting you. As always, we welcome your feedback.

Thank you for engaging with us in this conversation.

Matterport Linda

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  • @Phil @matterportlinda

     

    Phil your response really tells the story from our side of the fence. I fully agree that selling value and not price is a much better approach. Matterport has and continues to make the product better and further itself from the so called competition, so why is there a concern with price. 

    Matterport needs to invest in maybe preparing white label content for its MSP's with content that separates us MSP's from any so called competition. 

    I had mentioned earlier in a comment on this forum for MP to provide an agent type marketing platform where we can just incorporate our branding content such as logos and not have to worry about content for our marketing materials and websites, this would also be beneficial to direct lead generation by having an agent directory with direct contact instead of trying to sell a realtor or individual a camera then passing that lead on.

    I personally would pay for these services, a white label landing page (Mini-site), brochures, business cards, shareable post, shareable ads, pens etc. A white label mentality I think is perfect for this ecosystem.  

    Secondly, the price valuation of $0.06 s/f is not a realistic motivational number to have a successful program. I think I did some work that averaged $0.04 s/f the only reason that it worked for the test was because it was packaged as 5 models so it helped the daily rate.  

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