Secondhand ​Superstars

Ca​se Study • Mercari • 2023

The Problem

In 2023, the typical Mercari user opened ​Mercari once or twice a week. Of Mercari’s ​23M users, only about 80k were active daily. ​By comparison, we knew that the typical ​Mercari user in Japan accessed the app at ​least once daily, indicating that we had a ​large opportunity to improve engagement on ​the US app. But we didn’t know where to ​begin.


So, I led a foundational research study ​that helped align our marketing and ​product initiatives to emphasize our key ​differentiators that resonate most with ​Mercari’s “secondhand superstars.”


Typical Mercari US ​user accesses app

1-2 x per week.

Typical Mercari JP ​user accesses app

1-2 x per day.

TH​E OUTCOMES

Outc​ome 1

Guided 2023 product roadmap and ​influenced launch schedule

  • Focused strategy on features ​identified through this study as ​drivers of habit formation
  • I​ncreased engagement measured as a r​atio of daily to monthly active users.

Outc​ome 2

Drove changes in positioning strategy, ​focusing on drivers of engagement


A few examples from the App Store:

  • Luxury and bulky inventory no longer ​are featured prominently.
  • It emphasizes finding deals through ​offers, beloved by our daily users.
  • Mercari calls out the ratings system as a ​way to build trust, rather than buyer ​protection, which was not something ​universally favored by our buyers.
People Typing on Their Laptops

Research Approach

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St​akeholder interviews

I set up 1:1 meetings with product ​management, marketing, customer ​relationship management, and data ​science.

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Survey, diary study, ​interview​s

I conducted a mixed method ​approach targeting six segments of ​our most engaged users.

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De​sk research

I worked with business insights team ​to investigate behavioral patterns ​and conducted a literature review on ​habit formation.

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Sh​are out

I disseminated findings at a ​management offsite, executive ​offsite, and company show and tell to ​amplify research impact.

Timeline

Diary study

Stakeholder ​interviews

Research ​kickoff

Ideation

Report @ ​Exec Offsite

Report @ ​Company ​Show & Tell

Feasability assessment / ​Desk research /

Behavioral analytics

Survey / ​Engaged ​Users

Report

Report @ ​Product/UX ​Management ​Offsire

Survey / ​Generations

Product ​Roadmap

AP​PROACH

It​erative surveys

We surveyed users who had shown frequent ​engagement with Mercari (access 60+ days and 13+ ​weeks over past 90 days).


The results were analyzed by customer lifetime value ​and transactor type (buyer, seller, or both), to help us ​group findings by not only behavioral engagement ​but also by business value. I set a minimum sample ​size of 100 for each of the six segments.


The survey captured data about user motivations, ​what they find unique and enjoyable about Mercari, ​engagement with other apps, and demographics.


We later conducted a second survey, segmented by ​ge​nerations.

AP​PROACH

Diving deeper

I chose a few survey respondents from each of the ​segments to participate in an in-depth, seven-day diary ​study. Participants were asked to document any ​interactions they had pertaining to resale as they went ​about their week.


We weren’t able to onboard a specific diary study tool in ​time, so I set up a scrappy version utilizing a combination of ​fixed daily surveys and flexible, at-will uploads to individual ​participant Google Drive folders.


At the conclusion of the diary study, I followed up with each ​of them in a 60 min 1:1 interview. Stakeholders were ​extended open invitations to observe any interviews they ​wished, with time for debriefing to follow each session.

Woman Live Selling Preloved Clothes Online

Research CHALLENGES

re​gression to the mean

Since we’re interested in our most engaged users, ​how do we ensure the measured behavior is real and ​sustained?

pe​rformance anxiety

How do we account for changes participants make ​in their behaviors as a consequence of knowingly ​being observed, or the Hawthorne effect?

ac​cessibility

How can we accommodate varying levels of ​familiarity with technology to ensure data integrity ​across participants?

an​alysis

How will I set up a feasible system for data collection ​that compiles information across various sources?

AP​PROACH

From Stories to Strategies

I used EnjoyHQ to review, tag, and code ​interview transcripts and diary entries before ​affinity mapping by theme. I pulled key ​themes into highlight clips to help ​stakeholders connect more directly with user ​voices, then included these clips in the final ​share-out deck.

Ho​ok model

I modeled the behaviors I observed from participants in the diary study using the Hook ​Model, which describes patterns of habit formation. I then probed teams to consider - what ​is special about Mercari that enables these cycles to perpetuate?

In​vestment

Ratings

Trigger

Purchase FOMO

Va​riable reward

Variability in item ​scarcity and ​attractiveness, ​spurred by novice or ​casual sellers

An​ticipation

Dopamine surges

Action

Checking saved ​search to be the first ​to offer

Woman Live Selling Preloved Clothes Online

IN​SIGHTS

Everyday, novice sellers dr​ive engagement

“What I love about Mercari is the naivete”


Through observation, we learned that ​novice sellers are critical to being able to ​make the most of Mercari because they ​create the experience of variable reward.

Woman Packing Orders in Cardboard Box

IN​SIGHTS

Connecting through commerce

“I don’t want to feel like I have to be ​besties with everyone on the internet”


From this study, we learned that our most ​engaged users loved being able to ​communicate with another everyday human ​on the other side of a transaction, as ​opposed to a bot, business, or foreigner. ​Our most engaged users also specifically ​mentioned they appreciate not needing to ​be “besties” or over-socialize on Mercari. ​They appreciate that interactions are ​purpose-driven and transaction-focused.

Impact

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In​formed product roadmap

This study led to increased resources ​dedicated to information ​architecture and key features driving ​habit formation, like saved search ​and ratings.

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Shaped executive ​conversat​ions

This study prompted executives to ​question assumptions based on ​demographics , instead orienting ​around customer jo​bs to be done.

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Cl​arified positioning

Because of this study, we were able ​to better align our marketing and ​product initiatives to emphasize our ​key differentiators.

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Inspired customer ​connectio​n

Employees across the company, ​from UX to finance, marketing to ​CRM, had the opportunity to hear ​custo​mer voices.

im​pact

“Megan led one of the most important studies in the product team’s history, ​helping us understand who our core user base is, what their motivations are ​and what their key pain points are. This study is still essential to how we think ​about our customer base and product today.”

Tank Mori • VP Product, Mercari US

Got questions?

Contact me

mcmahonmc.github.io

meg.c.mcmahon@gmail.com

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