Our strategy

Our purpose is to make every home move amazing!

Our mission is to achieve a 10% market share by 2025 by being the go-to place to buy, sell or let your home

Purplebricks is focused on delivering a sustainable business for our customers, employees and shareholders by providing a seamless and trusted, home-move experience, delivering services, products, tools, and information to every customer who wants to buy, sell or let a home and to all Local Property Experts who derive real value from working with us.

Our strategic goals

Evolving our pricing and proposition is all about extending our total addressable market by adapting our pricing to appeal to different audience segments.

  • We have been very successful in going from start-up to the largest estate agency group in the UK by focusing on the single-minded proposition of a fixed up-front fee
  • We have begun to create a committed audience of hybrid adopters but, today, 92% of the market is still using traditional agents with a pay on completion commission
  • While the fixed up-front fee will allow us to grow beyond our current audience, iterating our pricing and moving to a more sophisticated pricing structure will widen our market opportunity and introduce new customer segments

Progress

  • We have completed deep dive and in-market pricing tests, and now have launched pricing trials in selected territories in London and surrounding areas
  • We have delivered the technology platform to facilitate a move to a more flexible pricing structure
  • We are testing a split fee (between publication and completion) alongside a range of all-inclusive "bundled" product offerings
  • Early lead indicators are providing valuable data on the penetration of new customer segments but it is too early to assess likely outcome

Technology has always been an area of differentiation for us, and we will continue to invest in product and technology, to deliver rapid innovation in the end to end customer journey and continually make it easier to move home.

We will also continue to increase LPE productivity by delivering greater automation and efficiency in the way they support our customers.

App usage has seen strong growth and we believe that the app platform will deliver further personalisation and greater engagement by enabling us to introduce contextually relevant products and services.

Progress

  • Continued to invest in building out engineering depth and capability
  • Starting to drive a step change in our customer experience
  • Real focus on improving virtual capabilities and enhancing visual content during COVID-19:
    • Introduced interactive 3D tours and video trailers
    • Redesigned our search and listings functionality
  • Reconfigured the app front end to deliver an easier, faster and simpler experience

The field teams are our strongest connection to our customers, and it is key for us to continually look to find ways to improve the performance of the field to deliver a great customer experience.

The goal here is to free the teams up to do what they do best, by ensuring we work with the best Territory Operators, who can create the right field structures, delivering a great experience, achieving higher conversion rates and, ultimately, delivering on our target market share of 10%.

  • A field restructure in 2020 created much bigger territories and facilitated:
    • Better line of sight of performance and therefore consistency of service experience in the living room
    • Better earnings opportunities for the self-employed field teams. The right leaders, recruiting and training the right people and following the right process, using data and technology in the living room to demonstrate our point of differentiation, are the key factors in the achievement of our market share target

 Progress

  • Following the field restructure in early 2020, we are now more focused on delivering a more consistent and improved performance across all regions
  • We have introduced a new value proposition to bring to life our culture and values in the living room – The PB Way
  • We have implemented a new target operating model to drive a strong sales culture balanced by higher levels of service standards
  • We have introduced a new talent tool helping Territory Operators to more consistently recruit, train and retain the best agents in the field
  • We have launched the "Your Key to PB" programme – evolving our journey as a digital business and providing continuous training modules and learning opportunities for everyone in the field

The goal here is to build scalable foundations across all areas of the business to ensure we can grow faster and safely, without growing pains.

  • We are making strategic decisions on what capabilities we need across our business
  • We are setting ourselves up to further scale the business

Progress

  • Investing further in delivering innovative customer processes for improved service and scaled growth:
    • Delivered automated anti-money laundering checks for sellers
    • Commenced next phase with self-certification through facial recognition
    • Commenced work on automated anti-money laundering checks for buyers
    • Commenced automation of processes for property management in lettings
    • Ongoing development of a multi-skilled team in the customer service teams
    • Improved self-service tools and automation across the customer journey
  • Continuing to deliver great customer service:
    • Net Promoter Score of 77
    • Feefo Gold Trusted Service Award for second year running

Our medium-term targets

10%

Market share

£1,700-£1,800

Average revenue per instruction

25%-30%

EBITDA margin

10%

Market share

£1,700-£1,800

Average revenue per instruction

25%-30%

EBITDA margin

We have a clearly articulated 'House Strategy' to drive growth in the UK

Vic Darvey

CEO