How would you measure the success of Zillow's Zestimate feature?

Introduction

Measuring the success of Zillow's Zestimate feature requires a comprehensive approach that considers multiple stakeholders and metrics. To effectively evaluate this product success metric problem, I'll follow a structured framework covering core metrics, supporting indicators, and risk factors while considering all key stakeholders.

Step 1

Product Context

Zillow's Zestimate is an automated home valuation tool that provides estimated market values for individual residential properties. It's a core feature of Zillow's platform, aimed at both homeowners and potential buyers.

Key stakeholders include:

1. Homeowners: Seeking accurate property valuations
2. Potential buyers: Looking for price guidance
3. Real estate agents: Using estimates as a starting point for discussions
4. Zillow: Driving engagement and establishing market authority

User flow:

1. Users enter a property address
2. Zestimate algorithm processes available data
3. Users view the estimated value and supporting information

Zestimate fits into Zillow's broader strategy of being the go-to platform for real estate information and transactions. It serves as a key differentiator from competitors like Redfin and Realtor.com, who offer similar but less well-known valuation tools.

The product is in a mature stage of its lifecycle, having been introduced in 2006 and undergone multiple iterations and improvements since then.