Focus on matchmaking applications

In recent decades, new companies have emerged to make our lives easier. As intermediaries, they offer applications that connect supply and demand in just a few clicks. Where once you had to spend hours looking for a hotel or go down the street to hail a cab, now it takes just a few minutes to find a solution.

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The matchmaking market in brief

Matchmaking applications enable you to list an offer and bring in the demand on a single platform. 

Two business models dominate this sector: 

• Commission per transaction: platforms charge a commission on each transaction.
• The freemium model: free basic services with premium options available by subscription.

Regardless of the model chosen, these platforms are based on robust technology, with mobile applications, advanced matching algorithms and intuitive user interfaces. 

Some sectors are very dynamic today: transport with Uber or our client BlaBlaCar, healthcare with Doctolib, catering with Too Good To Go, and of course, accommodation with AirBnb.

However, there are still a number of sectors that have been little affected by the crisis, and which still promise growth potential. These include education, odd jobs, leisure activities and short distribution channels.

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3 mistakes to avoid in a matchmaking platform

Many start-ups dream of launching their own matchmaking service. Of course, they need to study the market in detail before embarking on the adventure. Here are 3 mistakes to avoid.

1. Entering a highly competitive market

In-depth market research is essential to assess the competition. If the target market is already saturated, it will be difficult to find your place in it without a differentiating approach.

Take the case of Uber, which connects professional drivers with passengers wishing to make a short journey. Basically, the service offers to take you from point A to point B.

This is also what BlaBlaCar offers, but for longer journeys, with a driver whose job it is not, and in the company of other strangers.

These two players share the same segment, but their distinct positioning enables them to coexist successfully.

2. Too wide a range of services

The more services a company offers, the more likely it is to blur its message and find it difficult to be profitable, especially in the early stages of a project. Later, once the company has reached a certain level of maturity, it may well diversify its offering.

In any case, it's best to start with a niche service offering, which will enable you to present a clear offer to users, reference the service well and minimize acquisition costs.

Proposing a specific service offering is also important to correctly define the essential functionalities on the matchmaking platform, which will enable costs to be adjusted while offering an optimal user experience.

3. Choosing the wrong platform

When it's time to launch their services, startups ask themselves: is it better to launch a website or a mobile app? Of course, each platform has its advantages and disadvantages.

A website, for example, is fantastic for SEO , while the mobile app offers unique opportunities in terms of recurrence, especially thanks to push notifications.

In any case, before making your choice, it's essential to clearly define the features that are essential to your service, as well as the needs and habits of potential customers.

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How can you prevent users from leaving your platform?

The main challenge faced by matchmaking services is user evasion after initial use. Indeed, once the first contact has been made in real life, it can be tempting for users to exchange a contact to repeat the service without going through the platform.

Of course, it's impossible to prevent them from doing so. However, there are ways of encouraging them not to. 

Take the example of our mobile application client Prums, a platform that connects hotels, bakeries and restaurants with freelancers in the sector looking for temporary assignments.

It has put several tactics in place to prevent users from skipping the platform: 

• Simplification of contractual procedures: for example, contracts can be signed online, and working hours can be easily documented.
• Payment security: payment is guaranteed at the end of the assignment, reassuring the customer that the work will be carried out properly, and ensuring that workers are paid on time.
• Rating system: a rating system is used to rate both the workers and the companies offering the assignments. So there are no unpleasant surprises during the assignment.
• Wide range of profiles: for companies, access to a wide choice of workers is also a real plus, as they can choose the profile best suited to the assignment.

To ensure that users don't go outside the platform to work together, there's only one watchword: guarantee security for every stakeholder.

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Accelerated development of your startup

Targeting a niche enables you to address specific issues and collect relevant data to convince new users to join the adventure. Concrete success stories, backed up by figures, are powerful tools for demonstrating the value of your service.

It's therefore important to highlight the direct benefits of the service to attract new users, such as the speed with which extras can be booked to avoid service interruptions or under-staffing.

Finally, don't forget to emphasize the impact of your solution on end-users. For example, a user can land an average of 10 assignments a year thanks to this solution.

A useful, well-thought-out service tailored to their needs is the best growth lever for your start-up.

With a booming market and still niches to explore, matchmaking services offer many opportunities. To make sure you avoid the classic mistakes and build a solid platform, you can count on Le Backyard. Contact us to find out how we can help!