Success at Triangulate

As a start-up business, Triangulate offers two distinct services; its B2C business Facebook application, Wings and its B2B business, providing algorithmic engines to competitors, such as, eHarmony. Triangulate’s competitive advantage is its ability to collect data based on browser plug-ins and APIs for Facebook, Twitter, and Netflix, creating an engine that analyzes this data and generates inferences about users, which creates the capability to suggest high quality compatible pairings based on an algorithm using historical data for successful couples. So, why should the company give competitors its secret formula? In order to ensure success based on prior resource investment and outlined abilities, Triangulate should focus efforts on its B2C business, the Wings application for online dating and specifically, its user base and revenue model.

The company’s main problem in becoming successful with its Facebook application is the ability to acquire a critical user base that remains active and invested in the application in order to offer high quality matches. In addition to advertising on Facebook, the company should invest in paid search marketing. 60% of users are acquired through advertising, thus it is imperative that Triangulate determine the interests of its consumer base and advertise accordingly. Furthermore, the company should focus efforts on state-level targeting, since its user base was largely focused in California. This could be implemented by advertising on sites such as, LivingSocial or Ruelala. The service being offered has a network effect. The more people that use Triangulate’s online dating service, the greater the value to both potential and current consumers.

To ensure customers remain with Triangulate and to devise a successful revenue model, the company could offer distinct pay-as-you-go payment plans with built in loyalty programs. For example, the more users a customer brings to join the site or the more time spent on the site, the more messages they can send free to prospective dates, etc. Triangulate should implement a “freemium model” to attract a large user base and then charge prices to profitable consumers. Additionally, the company could create a loyalty program in which, if a consumer’s profile is “attractively” filled out and heavy uses the site, free social gatherings may be offered, by location, as an incentive. This would allow loyal customers to meet fellow consumers, engaging in a free opportunity to potentially meet someone of interest. Triangulate could also offer loyal customers a discounted date based on interest, partnering with LivingSocial or Groupon.

To additionally generate revenue, Triangulate could offer its accumulated consumer information to companies that would be able to utilize the data to market towards a selected target market. If Triangulate builds a large user base, then it will have invaluable data of thousands of consumers, increasing the value of the firm. The company could create revenue by supplying the information to interested outside parties, creating an additional profitable customer segment for the firm.