Real experiment – De Lounge pt 2

Second post about our experiment with a premium gaming center. 

The experiment

To gauge the interest for our idea we decided to run with a sort of “smoke test”. We set up a landing page that looked like an announcement page for our new venture and described it in a way that sounded like it was already underway and planned to launch. 

We described: 1: our USPs, 2: our philosophy and 3: our membership options. The USPs and philosophy are quite straight forward, however the memberships served to gauge the interest of our subscription business model. We believed that to get profitability we would need another way than just pay per hour to charge for our experience. The subscription was inspired by gym memberships where you pay a monthly fee with several tiers. 

To make our target group find the landing page we bought Facebook ads for a value of ~$50. On the marketing page we then used call to actions “read more”. The buttons lead the user to a google form where we encouraged them to enter their details if they were interested in the service. We also asked them to choose which of the subscription options they would be interested in. 

The USPs: only people over 23, clean and a way to book seats
The philosophy “No mayo”, jokingly summarizing our concept 
Our membership options
Facebook ad

The Outcome

After spending our ~$50 we could see that the campaign had been quite successful and that there was indeed a large interest for this type of experience. Per click we paid an average of 1 SEK indicating that our message was attractive to our user group. We managed to get 60 people “signing-up”, i.e. entering their email in the form. 

We also found interest in our memberships around two thirds indicated interest in our middle subscription option whereas around a third where interested in our most expensive option.

Average of 9 Sek per email address
People generally interested in subscriptions

Learning

After looking over the results from our experiment we concluded that there was indeed an interest for this typ of experience. However we chose not to pursue it. This was because of the business case that showed that even if we would be able to drive people to our memberships it would still be a low margin business and one that would likely be hard to scale given how niche it is.

All in all this was a really fun experiment and also taught us a lot about setting up landing pages and driving traffic via simple facebook ads.

Leave a comment

Your email address will not be published. Required fields are marked *