Kavak Trade-in

About Kavak

Kavak is a disruptive brand looking to change how pre-owned cars are bought and sold in the auto industry.

The mission is driven through an e-commerce platform, app complements, and stores around the world, while also providing after-sales services and financing options for customers.

Context and problem

Many customers want a new car giving up their old one, and Kavak offers a solution: Trade-in.

However, the website doesn't explain trade-in option well, leaving customers unaware of its benefits. Plus, showing financing options at the right time is challenging.

Nearly 20% of users showed interest in trade-in, while actual trade-in transactions accounted for around 11%.

The goal for 2024 was to increase monthly trade-ins by 30% over the previous average, going from a 11% conversion rate to 14.3% of total sales.

The chart below illustrates that out of all users tracked over a 90-day period, roughly 20% showed interest in options that included Trade-in.

Goals

Business goals

📈

Increase Trade-in conversion

🔁

Achieve higher and faster cars rotation

🚗

Increase company's car inventory

User goals

🤝

Changing their car safely and quickly

🤑

Get better deals on their cars

🛒

Buy at a more convenient price

Benchmarking

Conducted a thorough benchmarking analysis to explore possible ways to design the solution.

Gined some insights that were helpful when developing our own version. These included elements in the catalog, product page, inspection scheduling, checkout process, and more.

💡

Key findings

Highlighted card in the catalog before and after the offer

Banner on the product page before and after the offer

Integration of the offer into the scheduling funnel

Exclusive benefits for this operation

Integration of the offer into the checkout process

Analysis and solution

Designed a versioned plan to deliver value progressively and iteratively across different stages. This article only shows the initial stage of the solution.

In this first stage, we focused on integrating car quotes in a simple and seamless way within the purchase flow to increase leads related to car buying and trade-ins.

All possible scenarios related to pricing, financing, offers, etc., were taken into account.

Visual elements

Created versatile components that adapt to all possible scenarios provided by the Pricing team.

Landing page

Developed a dedicated website specifically to drive leads for this transaction. The goal was to increase awareness and leverage the impact of the new features.

Testing and risk mitigations

Tested with users to ensure they clearly understood the changes in the funnels. These sessions provided various insights that helped us improve the content and components before development.

Our goal was to mitigate the risk of negatively impacting the company's buying and selling processes due to the implemented changes.

Continuous monitoring was implemented to detect issues and optimize performance.

Results

This project was implemented in multiple stages, since the friction points behind the low conversion had multiple origins across the funnel. Given the importance of this transaction for the company, the feature continues to be improved and iterated on.

This first stage focused specifically on improving awareness from the sales funnel, simplifying and integrating the car quote flow to drive more leads. As expected, the impact was strongest there and became more moderate further down the funnel:

👤

Trade-in leads

saw a solid increase

🔍

Scheduled inspections

grew moderately

🚗

Trade-in conversion

showed a slight uptick

The results also revealed gaps in the inspection stage, pointing to further improvements needed in that part of the funnel.

These results validated the direction of the solution. Other actions considered for future stages included checkout integration, exclusive benefits, and a redesigned inspection funnel, aimed at closing the remaining gap.

The impact of this feature was monitored using Amplitude and metrics provided by the business. We met weekly to analyze them and identify areas for improvement.