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U-Experience Team11
 

U-Experience Team11

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    U-Experience Team11 U-Experience Team11 Presentation Transcript

    • Advantage Card U-Experience Lean LaunchPad Final Presentation – Team 11 Calvin Chen Mark Grundman Ria Kapila # of Customers Consumers Retailers Day 1 8 4 Day 2 20 0 Day 3 6 6 Day 4 13 2 Total 47 12 Business Type: Startup ?
    • Business Model Canvas Cost Structure - Membership card (create & distribute) - Website creation - Marketing Revenue Streams - Direct Sales - Subscription Fees - Point of Sale conversion Key Partners - Retail Shops - Service Companies - 3rd Party Social Networks - Clubs - Charities Key Activities - Selling - Building Website - Retail Partnerships Value Proposition - Monetary Savings (Discounts) - Additional Services - More Business (customers) - Business marketing Customer Relationships - Onboard local boutique retailers - Justify need - Maintain retail relationship - Word of mouth popularity Customer Segments - Boutique Store Retailers looking to expand small business - Students - Immigrants - Females (age 15 - 45) who like to try different boutique services - Customers >> New to the city >> Not loyal to brands >> Money conscious Key Resources - Network of Retail Stores - Savings offered Channels - Web sales of Advantage Card - Retail sales of Advantage Card Day 1 Business Model Canvas
    • Existing Discount Model Customers Restaurants ??? How do I get customers to return?
    • Business Model Canvas Cost Structure - Advantage card (create & distribute) - Website creation - Marketing & advertising - Overhead costs Revenue Streams - Direct Sales of Advantage card - Annual Subscription Fees - Point of Sale conversion - Add-on Services (customer consumption data, etc) Key Partners - Retail Shops - Restaurants - Service Companies (beauty related, Spa) - 3rd Party Social Networks - Clubs (Zagat, Open Table) - Charities Key Activities - Marketing via 3rd Party Social Networks - Card Sales - Building Website - Retail Partnerships - Consumer Partnership Value Proposition - Monetary Savings (Discounts) - Additional Services - More Business (customers) - Perks & Benefits to customers (set by retailers) - New & recurring customers streams - Less severe margin erosion for returning customers - Business marketing - Flexibility of promotions Customer Relationships - Onboard local retailers (restaurants & beauty) - Justify need - Maintain retail relationships - Consumer awareness - Word of mouth popularity - Ensure ease of use - Ensure advantages are honored Customer Segments - Boutique Store Retailers - Health & Beauty Store Owners & Managers - Restaurant Owners & Managers - Young professionals (18-30) - Consultants, Bankers, etc - Students - Females (age 15 - 45) who like to try different boutique services - Customers >> New to the city >> Not loyal to brands >> Money conscious Key Resources - Network of Retail Stores - Personal network of target consumers - Savings offered Channels - Web sales of Advantage Card - Retail sales of Advantage Card - Columbia University - Gourmet Clubs Day 2 Business Model Canvas
    • Total NYC Retail Sales = $78B Total NYC Restaurant/Healt h & Beauty Sales = $40B Target= $5.7M *Projected target value based on comparable service in UK using # of members as a percentage of total population. Applying that to NYC total population and per capita spending yields $5.7M. *Projections based on NYC and is not indicative of total market. Expandable to other cities. Initial Market Size
    • Proposed Model NYC Experience Dining Customers Restaurants
    • Business Model Canvas Cost Structure - Advantage card (create & distribute) - Website creation - Marketing & advertising - Overhead costs Revenue Streams - Direct Sales of Advantage card - Annual Subscription Fees - Point of Sale conversion - Add-on Services (customer consumption data, etc) Key Partners - Retail Shops - Restaurants - Service Companies (beauty related, Spa) - 3rd Party Social Networks - Clubs (Zagat, Open Table) - Charities - -Seamless.com Key Activities - Marketing via 3rd Party Social Networks - Card Sales - Building Website - Retail Partnerships - Consumer Partnership - App development Value Proposition - Monetary Savings (Discounts) - Additional Services - More Business (customers) - Perks & Benefits to customers (set by retailers) Big prize - New & recurring customers streams - Less severe margin erosion for returning customers - Business marketing - Flexibility of promotions - Exclusivity - -Alcoholic Beverages - Point System (Airline Loyalty) - Curation Customer Relationships - Onboard local retailers (restaurants & beauty) - Justify need - Maintain retail relationships - Consumer awareness - Word of mouth popularity - Ensure ease of use - Ensure advantages are honored Customer Segments - Boutique Store Retailers - Health & Beauty Store Owners & Managers - Restaurant Owners & Managers - Young professionals (18-30) - Consultants, Bankers, etc - Students - Females (age 15 - 45) who like to try different boutique services - Customers >> New to the city >> Not loyal to brands >> Money conscious - Foodies - -Budget - -High Spender Key Resources - Network of Retail Stores - Personal network of target consumers - Savings offered Channels - Web sales of Advantage Card - Retail sales of Advantage Card - Columbia University - Gourmet Clubs -Foodie networks Day 3 Business Model Canvas
    • Customer Segments & Value Proposition
    • Proposed Model – Consumer Study NYC Experience Dining Customers Restaurants
    • Customer Discovery: Learning Hypotheses What we were asking What we learned Small benefits upon each visit will drive new customers and make them loyal FALSE • What would you need to go out of your way to try a new place? • What would you need to go back? • What type of perks would enhance the experience and make you loyal? • How do you envision this working? • Would you pay for these benefits? • People want exclusivity and big paydays even if it means waiting or spending more. • People are more likely to try a new place based on monetary incentives but are more willing to return based on non-monetary experiences. • Consumers want an airline model that rewards loyalty. • Consumers will pay • Two types of consumers at opposite sides of spectrum Budget conscious and up front lock-in fee would drive behavior FALSE • If you were to pay up front for perpetual annual benefits would you be more inclined to go back? • What do you look for in a restaurant? • One time deal versus perpetual deals. • Prize experience on par with food • Will pay for that experience • Want exclusivity at higher end restaurants • Willing to try new restaurants if quality is ensured and special perk
    • Business Model Canvas Cost Structure - Advantage card (create & distribute) - Website creation - Marketing & advertising - Overhead costs Revenue Streams - Direct Sales of Advantage card - Annual Subscription Fees - Point of Sale conversion - Add-on Services (customer consumption data, etc) Key Partners - Retail Shops - Restaurants - Service Companies (beauty related, Spa) - 3rd Party Social Networks - Clubs (Zagat, Open Table) - Charities - Seamless.com Key Activities - Marketing via 3rd Party Social Networks - Card Sales - Building Website - Retail Partnerships - Consumer Partnership - App development Value Proposition - Monetary Savings (Discounts) - Additional Services - More Business (customers) - Perks & Benefits to customers (set by retailers) Big prize - New & recurring customers streams - Less severe margin erosion for returning customers - Business marketing - Flexibility of promotions - Exclusivity - Alcoholic Beverages - Point System (Airline Loyalty) - Curation Customer Relationships - Onboard local retailers (restaurants & beauty) - Justify need - Maintain retail relationships - Consumer awareness - Word of mouth popularity - Ensure ease of use - Ensure advantages are honored Customer Segments - Boutique Store Retailers - Health & Beauty Store Owners & Managers - Mid-tier Restaurant Owners & Managers - Young professionals (18-30) - Consultants, Bankers, etc - Students - Females (age 15 - 45) who like to try different boutique services - Customers >> New to the city >> Not loyal to brands - Foodies - Budget - High Spender Key Resources - Network of Retail Stores - Personal network of target consumers - Savings offered Channels - Web sales of Advantage Card - Retail sales of Advantage Card - Columbia University - Gourmet Clubs - Foodie networks Day 4 Business Model Canvas
    • Channels, Get Strategy, Revenue Retailers: • C: Direct Sales • G: Interesting value proposition, distance self away from Groupon • R: Take a transaction cost on rewards spent, no upfront fee Consumers: • C: Direct Sales, Dining clubs and organizations • G: Social Media, network, word of mouth • R: Direct Sales of card, Subscription fee
    • Proposed Model – Retailer Study NYC Experience Dining Customers Restaurants
    • Customer Discovery: Learning Hypotheses What we were asking What we learned Restaurants would be willing to create offerings to increase customer experience in exchange for loyalty TRUE • How do they retain customers? • What type of perks would you be willing to offer recurring customers? • What is the breakdown of your customers segment? • Three types of restaurants - High Traffic - Proximity - Destination • Restaurants already have offerings for their loyal customers • Higher end restaurants aren’t as willing to offer monetary incentives for new customers Restaurants would be willing to use external sites as a channel to advertise and bring in new customers Depends • Have you ever offered discounts, or daily deals through external sites? • How do you feel about the idea of using discounts? • When would you tend to offer these incentives (seasonal/by day or hours)? • How do you currently market or advertise? • All restaurants at some point have tried some sort of discounts • The majority of proximity, higher end restaurants were no longer offering or willing to offer discounts • High traffic, mid-priced restaurants continue to offer promotions for specific times throughout the year • Typically advertise through word of mouth or external sites
    • 4th Day! Major Pivot Focus on Consumer Experience & Become Revenue Streams for Restaurants
    • Business Model Canvas Cost Structure - Advantage card (create & distribute) - Website creation - Marketing & advertising - Overhead costs - Membership card costs - Experience Reservation costs Revenue Streams - Point of Sale conversion - Direct Sales of Advantage card - Annual Subscription Fees - Add-on Services (customer consumption data, etc) - Service mark-up Key Partners - Retail Shops - Service Companies (beauty related Spa) - 3rd Party Social Networks - Clubs (Zagat, Open Table) - Charities - Seamless.com - Restaurants - Museums - Day Trips - Tourist Attractions Key Activities - Marketing via Social Networks - Card Sales - Building Website - Retail & Consumer Partnerships - App development - Club Membership Sales Value Proposition - Monetary Savings/Discount - Additional Services - More Business (customers) - Perks/Benefits to customers (set by retailers) Big prize - New & recurring customers - Less severe margin erosion for returning customers - Alcoholic Beverages - Business marketing - Point System (Airline Loyalty) - Flexibility of promotions - Exclusivity - Curation - Special Experience @ Value for consumers - New Revenue source for partners Customer Relationships - Onboard local retailers (restaurants & beauty) - Justify need - Word of mouth popularity - Maintain retail relationships - Consumer awareness - Ensure ease of use - Ensure advantages are honored Customer Segments - Boutique Store Retailers - Health & Beauty Store - Owners & Managers - Females (age 15 - 45) who like to try different boutique services - High Spender - Mid-tier Restaurant Owners & Managers - Customers: New to the city, Not loyal to brands, Foodies Budget Targeted Retailers: - Owners/managers - Business Development Managers - VP of Sales Consumers: - Young professionals (18-30), Consultants, Bankers - Students - Singles (daters) - Corporate Relationship Managers Key Resources - Savings offered - Network of Retail Stores - Personal network of target consumers & partners - Software - Direct Sales Channels - Web sales of Advantage Card - Retail sales of Advantage Card - Gourmet Clubs - Foodie networks - Columbia University - Tourist Guides - Magazines - Social Networks Day 5 Business Model Canvas
    • Hypothesis What we were asking What we learned Partners: Partners would be willing to offer exclusive services for guaranteed revenue Partners would be willing to allow us 30 day leeway to cancel if can’t hit quota TBD • Would you like to partner up for additional revenue source? • Would you allow us to buy services in bulk for a % discount? • Would you be able to handle a 30 day notice for any bulk reservations through our club? • Willing to partner if business is guaranteed • Need larger sample size to evaluate in near future Consumers: Consumers would prefer exclusive experiences and would be willing to pay for uniqueness TRUE • Would you be willing to be part of a club that gives you special experiences in NYC? • Would you prefer food experience or other intangible experience? • How often would you take advantage of this club for the special offers? • Consumers are willing to pay for experiences • Most of them would prefer both food and other intangible experiences • Most of the consumers would be willing to take advantage of club membership more than twice a month Customer Discovery - Learning
    • Next Steps… • Customer Re-discovery • Further study Competition in market space • Re-evaluate Market Size & positioning • Test & iterate Hypothesis • Go out & interview potential consumers & partners • Identify roadblocks & potential solutions • Update Business Model Canvas • Rinse and Repeat