Zillow: Revolutionizing Real Estate with Spencer Rascoff, Rich Barton, and Lloyd Frink.
Company profile
Company business details
Motivation to build the product
The founders were motivated by the need for transparency in the real estate market, recognizing that consumers often lacked access to critical information about home values and market trends. This insight led them to create a platform that democratizes real estate data and empowers users.Problem that their product solves
Zillow solves the problem of information opacity in the real estate market, providing end users—home buyers, sellers, and renters—with access to essential data about home values and market conditions. This is important for them as it enables informed decision-making in what is often one of the largest financial transactions of their lives.Their unfair advantage
Zillow's unfair advantage lies in its extensive database of real estate information and its innovative Zestimate feature, which provides users with estimated home values based on a variety of data points, setting it apart from traditional real estate services.Strategies
Pre-Launch (Product Development & MVP)
Scrabble for Naming
Rich Barton applied a unique approach to naming companies, which he referred to as 'Scrabble for Naming.' He emphasized the importance of using high-point letters like Z, X, and Q to create distinctive and memorable brand names. For example, he named Zillow using a Z and incorporated double letters to enhance recall. Barton believed that a well-chosen name could significantly impact a brand's identity and market presence, making it easier for consumers to remember and engage with the brand.
Launch Stage
Provocation Marketing
Rich Barton, during the launch of Zillow, implemented a strategy called provocation marketing. This involved creating a product feature that was inherently provocative, such as the Zestimate, which provided estimated home values. The Zestimate was designed to spark conversations and emotions among users, leading to organic word-of-mouth marketing. Barton emphasized that the product itself should be the primary marketing tool, and they built a PR data distribution infrastructure to feed housing data to local newspapers, ensuring constant media coverage and engagement. This approach allowed Zillow to grow its brand without relying heavily on traditional advertising budgets.
Leveraging Media Appearances
Rich Barton leveraged his appearance on NPR’s 'How I Built This' to share his entrepreneurial journey and the story behind Zillow. By participating in this well-known podcast, he aimed to reach a broader audience and enhance brand recognition. The interview not only highlighted his personal experiences but also discussed Zillow's innovative tools like the Zestimate, which empowers consumers with information. This strategic media engagement helped position Zillow as a thought leader in the real estate industry.
Growth Stage
Data-Driven Marketing
At Zillow, Rich Barton focused on leveraging data to drive marketing efforts. The company established a mechanism to continuously feed housing data to local newspapers, which created a constant demand for stories related to housing prices. This strategy not only built brand awareness but also positioned Zillow as a trusted source of information in the real estate market. By providing valuable data, Zillow was able to engage with consumers and media outlets effectively, enhancing its visibility and credibility in the industry.
Provocation Marketing
Rich Barton, co-founder of Zillow, emphasized the importance of provocation as a marketing strategy during his interview on NPR’s 'How I Built This.' He explained that provocation is a tool he has used across multiple companies to disrupt established industries. This approach involves challenging the status quo and encouraging dialogue around industry practices, which can lead to increased visibility and engagement with the brand. Barton noted that this strategy has been effective in creating a buzz and drawing attention to the companies he has been involved with.
Learn more about Zillow
How Rich Barton Built Expedia and Zillow from $0 to $35B — Audacious Goals, Provocation Marketing, Scrabble for Naming, and Powerful Daily Rituals (#806)
