Secondhand Superstars
Case 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.
THE OUTCOMES
Outcome 1
Guided 2023 product roadmap and influenced launch schedule
Outcome 2
Drove changes in positioning strategy, focusing on drivers of engagement
A few examples from the App Store:
Research Approach
Stakeholder interviews
I set up 1:1 meetings with product management, marketing, customer relationship management, and data science.
Survey, diary study, interviews
I conducted a mixed method approach targeting six segments of our most engaged users.
Desk research
I worked with business insights team to investigate behavioral patterns and conducted a literature review on habit formation.
Share 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
APPROACH
Iterative 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 generations.
APPROACH
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.
Research CHALLENGES
regression to the mean
Since we’re interested in our most engaged users, how do we ensure the measured behavior is real and sustained?
performance anxiety
How do we account for changes participants make in their behaviors as a consequence of knowingly being observed, or the Hawthorne effect?
accessibility
How can we accommodate varying levels of familiarity with technology to ensure data integrity across participants?
analysis
How will I set up a feasible system for data collection that compiles information across various sources?
APPROACH
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.
Hook 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?
Investment
Ratings
Trigger
Purchase FOMO
Variable reward
Variability in item scarcity and attractiveness, spurred by novice or casual sellers
Anticipation
Dopamine surges
Action
Checking saved search to be the first to offer
INSIGHTS
Everyday, novice sellers drive 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.
INSIGHTS
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
Informed product roadmap
This study led to increased resources dedicated to information architecture and key features driving habit formation, like saved search and ratings.
Shaped executive conversations
This study prompted executives to question assumptions based on demographics , instead orienting around customer jobs to be done.
Clarified positioning
Because of this study, we were able to better align our marketing and product initiatives to emphasize our key differentiators.
Inspired customer connection
Employees across the company, from UX to finance, marketing to CRM, had the opportunity to hear customer voices.
impact
“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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