eHarmony

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School

Arizona State University *

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Course

502

Subject

Information Systems

Date

Oct 30, 2023

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docx

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Uploaded by nickitheestallion

eHarmony eHarmony created value in the two-sided online dating market by tapping into the single market, seeking a serious relationship, and providing an algorithm that best matches an individual to similar (“like-minded”) individuals. The user had to ensure they completed a relationship questionnaire that provided questions that helped match an individual and keep people off the platform that didn’t align with the mission of the service (“We leave a lot of short-term value on the table, but the idea is to keep the quality of our pool really healthy”). Harmony also invested heavily in its R&D sector to collect data on how to help create a successful marriage from a relationship formed from using their services. These extensive questionnaires and data collection fed into the matching algorithm, which helped eHarmony create value in that they could predict to a high degree of accuracy compatibility, re-subscription rates, and long-term relationship happiness. This would be very beneficial and help promote access to the right people while reducing an individual’s cost of finding the right match (mainly since a subscription is driven by how users like their matches). And lastly, using something called guided communication helped couples who just connected be able to ask a series of meaningful questions (non-surface level) to really get to know each other better before meeting in person (i.e., their beliefs, values, etc.), so when they do meet in person, they feel as though they have known each other for a long time and form a better connection.

The algorithms created eHarmony’s value; it kept the customer on the site because of how successful and accurate it was in creating a match. The marketing that was created came after the fact, and it mainly focused on what the algorithm did and guaranteed a match; the ad even spoke about the questionnaire that is offered to the users if they sign up. Another example of why the marketing did not create the majority of eHarmony’s value is when they launched an ad that told a story about lonely individuals who were afraid to love again and ended with a happy conclusion. This caused many of the customers to experience anxiety and lose sight of the benefit in which they sought out. eHarmony captured more value for itself because it had a service that was proven to be successful and helped its customers feel like they were the experts in finding long-term love, making it different from its competitors. It is similar to the Coke and Pepsi case as eHarmony is the pioneer of the industry, creating a service/product that its customers can rely on to provide results while leaving other dating apps to try and replicate eHarmony while adding new things and changing their marketing to rely on capturing other customers and eHarmony’s customers.

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