Nilan Peiris: commitment

Transcript context

…That is really interesting. Airbnb is not quite like that. It's actually become more like that with a lot of just like, "Let's build awesome products and not focus on experiments as much." So that's really interesting that prioritization basically at Wise came from, "What are people telling us?" I guess let me ask actually, how did you know what the impact would be on customers? How did you decide? Is it frequency of how often people request it? Is it, "We need to lower the cost, and so we're just going to prioritize the things that will lower prices most?" Definitely on the journey at the beginning, you are into split testing, right? Let's try to take apart a split test on price. So, you've systemically dropped the cost. Imagine we drop the cost. The question is, do we drop the price? Do we pass that all on to customers? And do we keep some of it? And split testing on the price thing, if the split test is going to mean you end up with more revenue, it means you drop the price by 10%, and there happened to be that day, more than 10% more customers in the market who, they saw the price at one pound, but they see the price at 90p, at 10% lower, and they're like, "I wasn't going to shift at buy at one pound but I'm going to buy it 90p." So this is pretty hard to do this. This word around conviction is one I use a lot, where you build this conviction that price is what matters. And through this incremental split test, you will take a long time to go there, but at some point you kind of go, "Actually I've got enough conviction." So there's one kind of strategic bet at the heart of Wise. That is if we have the lowest cost platform, and it's really fast, and really high quality, the world's volume will switch to us. And just marginally getting there step by step by step, and trying to track the incremental return is actually slower. And there's a point that comes that you go, "I feel really comfortable investing in price. I feel comfortable investing in speed, because I know it's going to pay back, and not necessarily this month, but eventually it will, and I need to make gains on all three levers in order to get there. " Does that make sense? Yeah, absolutely. So essentially, in that track of work, instead of everything that you did to reduce price, there wasn't an experiment to see, "What impact does this have on growth, or revenue?" Instead, it's just, "We know reducing price is going to help us grow, and so we're just going to track how much we're cutting price." And that's essentially the goals, I imagine, were just cut the price by some amount, find a way to make it this much cheaper every, say, quarter, or year.…

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