What is Marketplace Liquidity?

Marketplace Liquidity is the measurement of the state of supply and demand in the marketplace.

A marketplace with high liquidity is one in which a couple of extra transactions on either side of the marketplace in a geographic location, would be unlikely to affect the ability of the marketplace overall to achieve the bulk of other transactions.

Gravity

Both supply and demand have a gravity, which is the distance that they will attract each other from.

That gravity is affected by several things, for example:
  • Value of the interaction
  • Amount of other contracts in the area
  • Peripheral services in the area etc
  • Population density of the area

For example: tamme tracks a builder in Bristol will do a large well paid job in London. However; your cleaner is not likely to travel that far for work. If that builder has other jobs closer to him, their gravity is going to have a higher effect. So therefore he is unlikely to bid on the London job. 

tamme will then build predictive models out based off user behaviours, intents and actions to ensure it is targeting the most likely person to take action. This occurs for both the supply and demand side of the marketplace. 

Balancing Your Marketplace

Maintaining the ideal amount of supply or demand in each geographical location is critical for a marketplace to achieve liquidity. 

Each marketplace determines a different number of required supply to complete every job, task or event required by demand to be fulfilled. tamme builds out predictive models to determine the perfect amount of supply or demand at a suburb level. 

For Example...

For example: (Supply Driver Scenario) in Manhattan (USA), there may only be 5 pet sitters who look after large dogs. When a job is posted for an animal owners large dog to be looked after in Manhattan, the marketplace may require at least 10 pet sitters who meet this requirement. As they have to be available for the time the large dog requires pet sitting, the animal owner and the sitter have to interview each other (and like each other!) and the pay must be an amount the pet sitter is interested in earning. 

(Demand Driven Scenario) In Shoreditch (UK) there are 20 large dog pet sitters. There is not enough work to go around for all of them to keep them engaged in the platform. Or if there is work, there is not enough work with the correct pay or amount of hours that the pet sitters are looking for. The marketplace may require 15 more pet owners with large dogs that are looking for a minimum 5 days work and/or a minimum pay of £100 for the whole job.

Once tamme understands "the magic number" so to speak by tracking every transaction, who takes the job, why they take the job, their behaviours and intents etc. tamme then ensures it reaches out to existing users though different ad channels to engage from both supply and demand as well as acquires new users just in the areas required. This is critical for any marketplace to achieve liquidity.