eHarmonyAnna Gray

EECS441 Section 001

September 28, 2016

Mission

“To empower people with the knowledge and inspiration needed to grow and strengthen their most

important relationships for a lifetime of happiness”

Business Products Performance Competitors Secret Sauce Conclusion

History

1998: Founded

2000: Launched

2005: New CEO

2007: eHarmony labs open

2009: Exceed

$1B cumulative

revenue

2012: Founder becomes CEO again

Business Products Performance Competitors Secret Sauce Conclusion

Products and Customers

Standard Website Standard App

Premium Website

Business Products Performance Competitors Secret Sauce Conclusion

Business Model

Gain users for network effect

and data

Subscription based income

model

Sell advertisement

space

Value and

Revenue

Business Products Performance Competitors Secret Sauce Conclusion

Company and Performance

• Today’s Financials:• Private company, owns 14% of

$2.4B dating service industry ($340M)

• > 66M users, ~800K subscribers (1.2%)

• 2M eH marriages, divorce rate 3.86%

Turn results into insights

Convert users to paid subscribers

Become leading match-making site in their segment

GOALS

Business Products Performance Competitors Secret Sauce Conclusion

Competitors

Paid do-it yourself

Freedo-it yourself

Niche Sites Social Networks

Business Products Performance Competitors Secret Sauce Conclusion

Competitors

Serious relationships only, no casual daters

Double Match.com prices

Higher quality matches

Quicker and more thorough sign-up process

Less modern app features

vs.

Business Products Performance Competitors Secret Sauce Conclusion

Secret Sauce: Quality Differentiation

Proven track record

Patented matching algorithm

Extensive profiling

Network affect

Business Products Performance Competitors Secret Sauce Conclusion

ConclusionYES, eHarmony is successful

eHarmony

Entry Threat

Buyer Power

CompetitorsSubstitutes

Supplier Power

Risks:1. Expansion challenges (saturated

niches and cultural differences)2. Not attracting subscribers3. Founder Dr. Warren death

Business Products Performance Competitors Secret Sauce Conclusion

Questions?

References• http://www.eharmony.com/press-release/10/• http://www.onlinedatingmagazine.com/history/eharmonyhistory.html• https://en.wikipedia.org/wiki/EHarmony• http://

www.datingsitesreviews.com/staticpages/index.php?page=eHarmony-Statistics-Facts-History• http://www.datingsitesreviews.com/article.php?story=eHarmony-Financial-Market-Estimates• http://blogs.wsj.com/venturecapital/2010/07/12/the-100m-revenue-club-eharmony-captures-he

arts-of-vcs/