PROJECT: Student Behavior Data Tracking and Analysis PlatformNew Customers Interviews (in person, phone, skype, email): 23 TOTAL Customers Contacts: 93 Jack Akshai Curtis Finance Education Fundraising
What We Thought Day 1• Find the principal at schools that track – Through existing contacts• Sell them tracking software – Easier data collection – Quicker analysis• Figure out a plan for different types of schools later
What We Learned (Days 1-4)• Multiple value propositions– depending on customer segment.• 5 distinct customer segments in ‘No Excuses’ charter schools: teacher (user) principal (decider), finance director (buyer), IT (advisors), parents (influencers). All segments have specific channels.• Over 5,600 charter schools in the US and growing at 10%+ annually over the past several years (source). The market is significantly larger than we initially expected. • UK, India, Canada (Alberta)• Teachers look for/find technology solutions. Teachers talk to other teachers. Hence, partnering with teachers is one sales strategy hypothesis.• A LOT of money is spent each year on ed-tech solutions. Our preliminary (and existing pilot) cost structure can be revised up as we continue to scale, but it’s probably too cheap.• A start up can never talk to too many potential customers.
Ending Status/What’s Next?Ending Status Implied Next StepSegments have specific Channels Test channel guesses and effectivenessMarket is bigger than expected New canvases for different markets (beyond segmentation)Partnerships may be best sales method Find potential partnerships and continue to test consultant relianceTeachers find tech Test Google and other methods of howMultiple, segment specific value Figure out which to prioritize in pitchpropositionsHaving talked to 93+ customers Keep talking, get to more than 500 in the next few monthsTurned away customers Scale/build team to capture customers
Customer Segments: Relationship Diagram Superintendents Directors of FinanceUnions Deans/Principals School Boards Teachers IT Directors Denotes variables based on school structure
Market SizeInitial TAM: 1.25mm charter school students across 5,000+ schools•1,650 schools already using some version of monitoring•33% of all schools in ’09-’10.•“Majority of high-poverty schools track student behavior” # of Schools Revenue/School Total Revenue 165 (1st Yr Target) $5,000 $825,000 1,650 $5,000 $8,250,000 5,000 $5,000 $25,000,000 132,656 (All US K12) $5,000 $663,280,000 Hypothesis: Market is larger than charters that track discipline.
Revenue Model•Initial set-up fee: $500-$2000 •State per pupil •Complexity of feature set required •Maturity – how much assistance required? •Acquisition/retention cost (will we need to visit?)•Ongoing subscription - $2/student/mo •2 customers stated willingness higher than $2 •At least two subscription ed data software companies charge more than $2 •Expect 5 year life (min)• Avg Revenue/Yr: $5,000 •Avg 250 students •10 mo. usage Year Schools Total Revenue 0 5 (of 20 requests in 5 mo) $25,000 1 165 (10% of initial market) $825,000 2 500 (10% of all charters) $2,500,000 5 2500 (less than 2% of all schools) $12,500,000
What Does it Look Like?• Sample Student Report
What Does it Look Like? Current Development • Addition of ‘Dashboard’ for quick analytical snapshotAnalysis• Integrated graphical charting – See ‘Demerit Report’• Analytical Tools – See Behavior Frequency Analysis• Targeted reports with specific analysis for particular groups