Cazoo Ltd
Part Exchange: Negative Equity
The Problem
Negative equity occurs when a customers car is worth less than the finance they own. The experience during the part exchange transaction was confusing due to poor information and therefore and not performing well.
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The targets are not being met: Increase attachment rate from 28% to 40%. Maintain consumer purchase rates above 67%
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Context - usability tests showed poor user comprehension levels - 2/10 people understood the output they were seeing
User and Business Needs
The user:
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wants to find out how much their car is worth to understand the cost of their new car
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needs to understand that they will pay more today because of negative equity
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needs to understands their options
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wants the business to feel trustworthy
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wants to feel confident about the experience
Cazoo:
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cars in negative equity are newer, and could be sold at higher value
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commercial targets need to be met
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wants the trust of the customer​
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Reviewing the Experience
The before state showed:
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A negative valuation number
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Explanation was hidden in tooltip
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Unclear that users have to pay more to part exchange
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Unnecessary information
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User comprehension was very low - many thought the negative number would be taken off their new car
Content Design Led Approach
As the contextual information was leading customers to not understand the information, leading with content/information architecture to identify what users needed to know, and what actions they should take, was the agreed approach.
Collaborating with the right group to map out user issues and new outcomes:
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Sketching and ideating
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Iterating and gathering feedback
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Product & stakeholders helped shape success criteria
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Feasibility with engineering and finance teams
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Product design shaped the experience around the content
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Preparing a prototype to test
Summary of Changes & Results
​Changes:
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Clear, concise information
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Payment highlight - showing there is payment required.
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Next steps added.
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Equal weighting of options and setting expectations added.
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Results: User testing showed a improvement in comprehension. Post-launch results: 35% increase in conversion.
Results:
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Usability testing showed that 10/10 users were able to understand the information Vs 2/10 from the original testing
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Users accepting their negative equity figure increased by 35% per week, equating to a saving of £20k per week.
