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How LinkedIn leverages data to build scalable payments strategy

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Karan Ahuja

www.linkedin.com/in/ahujakaran www.linkedin.com/in/chiyikuan

Chi-Yi Kuan

• Product Manager

• Product guy and Entrepreneur

• Director, Business Analytics

• Big data evangelist and practitioner

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Who are you @ LinkedIn?

Most

Connected

Andre Edelbrock

Most

Popular

Souheil Badran

Source: LinkedIn Data

Most

Endorsed

Joe Rivest

Earliest

Adopter

John Canfield

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Agenda

• Introduction to LinkedIn

• Crafting a data driven payments strategy to boost

conversion and drive international growth

– Launching new payment methods

– Reimagining the checkout flow

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Our mission

Connect the world’s professionals

to make them more productive

and successful

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For our members

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For our customers

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Mobilize

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The next decade

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Our vision

Create economic opportunity

for every member of the global

workforce

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THE ECONOMIC GRAPH

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Connecting talent with opportunity

at massive scale

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Interactive analytics products to make better decisions

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In-house experimentation platform helps measure

performance and improve member experience

Empowering everyone @LinkedIn to

be able to run and analyze A/B

experiments

End-to-end A/B solution with:

• Automated analytics

• Trustworthy results

• Scientifically-founded methodology

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Case Study I

Launching new payment

methods

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Internal and external data sources highlighted a need to

add more payment methods

“Can we publish ads and pay via direct

debit?”

B2B Advertiser, France

“I would prefer to pay via PayPal; will it be

available in the near future?”

Member looking to avail free trial, Netherlands

“I’m really interested in trying LinkedIn’s

Sales Navigator product but don’t have a

credit card.”

Potential Subscriber, Spain

What were our members saying? What was our data saying?

7

21

USA ROW

% of members1 dropping off the checkout page due to lack of

payment choice

An international member is 3x more

likely to drop-off vs. a US member

Notes: (1) Based on survey data (Sample size by geography: US – 7,469,

ROW – 4,317)

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Country Preferred payment method online1

Cards PayPal Direct Debit2 Other

US 81% 18% 1%

UK 40% 21% 35% 4%

Canada 59% 35% 2% 4%

Australia 35% 42% 21% 3%

Nordics 54% 22% 24%

France 82% 14% 4%

Netherlands 5% 6% 77% 12%

Brazil 78% 5% 17%

India 33% 58% 9%

Germany 13% 5% 81% 1%

China3 10% 20% 70%4

Japan 52% 10% 39%

Key insights

• PayPal a prime option in countries

where we make money

Notes: (1) Payment method preferences from Cypersource, Emarketer (for Netherlands), PwC research (for Australia), ICICI (for India) (2) Direct Debit also includes bank transfers ELV (3) Preference

data for China is for third-party payment solutions (4) Includes e-wallets, Alipay is #1 at 50% market share followed by Tenpay

1

2

3

1

2

3

External reports coupled with internal data helped us to

identify payment preferences for our key markets Payment method preference for top 12 countries ($)

Direct Debit2 is a preferred payment

method in IN, DE, NL

AliPay is preferred over other

payment methods in China

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We launched PayPal last year and observed a significant

lift in conversion

Results

• +x% lift in checkout

conversion

• +$xxM in annualized LTV

(lifetime value) bookings

• xx% of checkout orders

today are placed via PayPal

Key takeaways:

- Leverage internal and external data sources to make informed decisions

- Focus on ‘member experience’ and the metrics will follow

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How many posts are published on LinkedIn

per day?

a. 10,000

b. 20,000

c. 30,000

d. 40,000

e. 50,000

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How many posts are published on LinkedIn

per day?

a. 10,000

b. 20,000

c. 30,000

d. 40,000

e. 50,000

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Case Study II

Redesigning the checkout

flow

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Over the years, we’ve added several products…

Payments

LinkedIn

Premium

Text Ads,

Sponsored

Updates

Job Posts

Single payments platform

handling products with varying

billing methods

• Job posts: one-time fee

• Ads: CPC, CPM

• Premium: subscription model

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… but our checkout flow remained static

One-size-fits-all model was

leading to poor member

experience and high drop-

off rates Several unnecessary

fields

No context

Product

information

obscure

No ability to edit

order

Not much

information on

billing

frequency

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We started analyzing our internal data…

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… and a lot of text

I don’t have a credit card.

How else can I pay?

Customer Care Ticket

Why is a payment method

required for a free trial?

NPS Survey

All terms & conditions were not

clearly explained. What happens

after the free trial? How can I cancel?

Will I be charged if I cancel?

The price is too high for a Job Seeker

Basic subscription. I can pay up to

INR500 per month, which is about

USD10 but not more than that.

Customer Care Ticket

NPS Survey

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One LinkedIn

• Integration with existing product flows (i.e., customized checkout flow)

– Provides consistent user experience

– Maintains context and product messaging

Clarity

• Information on billing frequency

• Detailed breakdown of cost line items (taxes, discounts, etc.)

• FAQs specific to each purchase type

Simplicity • 2-page to 1-page flow

• 50% reduction (from 14 to 7) in input fields

Flexibility • Ability to change billing cycle (monthly/annual), job posting type

(30-day/5-pack/10-pack)

Based on user research and our analysis, we designed our

new checkout flow around 4 key principles

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Our redesigned checkout flow improved member

experience and created more value

Results

• Double digit increase in

checkout conversion

• +$xxM in annualized LTV

(lifetime value) bookings

• Double digit decrease in

customer tickets

Key takeaway:

- Context is everything when asking members/customers to pay for products/services

- Customers don’t care about organizational barriers; break them down ASAP

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Key Takeaways

• Invest in data technologies to measure actions, derive

insights, and make better decisions

• Leverage internal & external data sources to build a data

driven and holistic payments strategy

• Focus on “Outside-in” and “Customer First” and the

metrics will follow. Context is everything on the

payment/checkout page

• Customers don’t care about organizational barriers, so

break them down ASAP

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