AnswerDash Questions: 1. Assess AnswerDash’s current ...

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AnswerDash

Questions:

1. Assess AnswerDash’s current go-to-market approach, including customer selection, pricing, communication, and sales efforts.

2. Economic Value to Customers: Calculate the economic value that AnswerDash delivers for e-commerce vs. a SaaS customer. Separate between cost savings and revenue lift benefits (Both types of customers need not get both types of benefits. The case provides information on which types of customers get which kinds of benefits). As a starting point, you can consider an organization with 100000 monthly web visitors and 1 million in monthly revenues.

3. Lifetime Value: Calculate the LTV for customers with a Pro Plan under current pricing. Assume Gross margin of 80%, the annual interest rate of 10% and a retention rate based on how many paying customers they had in their first year and how many out of those they lost.
How many customers do they need to earn back the original investment in the company based on current pricing (Pro plan)? Using the information on prospect conversion rates given in the case, how many prospects would they have to talk to in order to achieve this?

4. What is your view on the three primary options that AnswerDash is contemplating going forward? Which one would you recommend? Evaluate the pros and cons of all three options.

5. For the strategic option that you support, develop a complete marketing strategy and plan, including which companies to target, how to position the value proposition and what communication, selling and pricing strategies to use.

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These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.

AnswerDash processes the leads given by friends and word of mouth people who have their ecommerce websites or Software as a service websites. The product was introduced to any person who could be reached by the founders and the staff of the company. The product did not require any programming experience from the clients and included a tab on which a click would answer all the FAQ’s. This feature of the service was interesting to the managers of various companies who called for the demo of the product.
The operating directors of AnswerDash spoke with managers of various enterprises across all the industries and companies and did not focus on any particular business. They targeted managers of companies who were looking for a revenue lift through online sales and such managers were introduced to the team by board members, advisors or even their own contacts. But the sales funnel often had a long queue before a lead can be transformed into real sales of the AnswerDash tab in the clients’ website. Often the potential customers tried for a month’s free trial and then took undue time to take a decision of incorporating AnswerDash into their website. Customer selection of the company was not a targeted one as anyone who was interested in the service was given a demo irrespective of whether the demo would get transformed into real sales of the product. The pricing of the website was also based on the user clicks and the three tiers of $99/month for 2500...

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