Product Development- Presentation for LockBox Startup

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  • Presenter : SujalNotes :Our digital presence is much bigger than physical presence. Facebook, twitter, PintrestGenerate tons of digital information and keep adding daily …..Where do we have them? Locally – could be lost, Scattered - unorganizedWhat happens to your digital presence after you?No well laid process today to designate who owns and can manage your digital world after you!In today’s world , There is NO SINGLE SOLUTION that address all of these concerns3 together : Guaranteed Back-up, keep it safe and distribute based on trigger eventsFear of lossComplexity of interests and dataEasy way to manage multiple assets located in multiple areasSecure
  • this strategy is based on the success iControl has had with Comcast
  • increase revenue from existing customers and helping to differentiate their brand by providing them with an innovative product that helps show their leadership
  • (Refer Public data from wiki on 2.7 million)
  • Fear of lossHe is concerned about how his family can discover and access his growing digital assets in case of a disasterComplexity of interests and dataEasy way to manage multiple assets located in multiple areasBeneficiary managementSecure
  • Product Awareness : Drive Awareness of LockBox amongst 60% of Loyal MetLife customers Customer Acquisition : Target enrolling 10 % of MetLife customers in the first year Customer Retention: Increased loyalty to MetLife with this unique product offeringMetLife’s Goals in the partnership ventureBetter Sales Stories Explore avenues to potential marketsStrategy for Customer retention
  • OnlineMicrosite – MetLife.com/LockBoxSocial Media CampaignDisplay Ads SEM Campaign - Ad-words for Google, BingEmail Marketing for Targeted SegmentOfflineDirect mail to prospective customer segmentsCatalogsAds in Newspapers / AARP MagazinesFacebook Page MetLife/Lockbox Daily Tips, Likes, Give-AwayTwitter feeds with news on lockboxBuild YouTube ChannelOnline Discussion Forums
  • Target on Insurance Site, Gmail, Google search on any legacy/estate planning contexts.Bidding preference is to Increase awareness so the payment terms will be based on Cost per Impressions
  • Limit Maximum Bid Rates based on CTR Results
  • MetLife has about 2.7 million auto and home policies and the target audience that fit our demography is about 200000 both view and click through measurements using
  • Each direct mail cost is approximately $0.75cents)Product Pricing AssumptionsCost Assumptions:29.99$ per year for 5 GB content with unlimited passwords, and up to 10 beneficiary for existing customer as an add-on049.99$ per year for up to 100GB content with unlimited passwords/beneficiary for existing customer as an add-on69.99$ per year as an individual productRevenue Share Assumptions:30% of the lockbox product revenue will be shared to lockbox
  • https://docs.google.com/file/d/0B4b3lF2U-FMtZGczblFlSlAySzQ/edit?usp=sharingMetLife- Lockbox : Estimated 3% customer acquisition per year with 10% attrition, refer to business case xls spread sheet ) Year 1 – 2.4 – 5.2= (2.8) in million USD Year 2 - 4.6– 5.0 = (0.4 ) in million USD Year 3 - 6.8 – 5.4 = 1.4 in million USD

Transcript

  • 1. Lockbox – Go To Market Lock Box – Go To Market
  • 2. Why Lockbox?  Digital Assets - Protection & Inheritance  Personal ‘Digital Safe Box'  Password Manager  Assign Beneficiaries  Enables digital Assets transfer  Store Anything that matters!  Backup & Inheritance Guarantee
  • 3. Lockbox Product Positioning  LockBox Offered as OEM (white-label) software solution  Sell as an Auxiliary Product  Pair Lockbox with leading Finance/Insurance providers  Leverage Brand and Distribution channel of Partners
  • 4.  Review RFP from MetLife and our Response  Market Evaluation - MetLife-LockBox Partnership  Partnership Marketing Strategies  Cost & Revenue numbers for Next 3 years  GO / NO-GO Decision on the partnership Agenda for Today
  • 5. MetLife-LockBox RFP Highlights  Scope MetLife looking for service providers to empower Digital Asset Management  Goal  Make a Difference  More Customer Value  Added Revenue  Generate Sticky Customers  Partnership 3 year limited Exclusivity  Functional Expectations  Asset Upload  Password management  Beneficiary assignment.  Digital security standard compliance × Legal binding × Mobile access × Auto-sync
  • 6. MetLife-LockBox RFP Highlights  Product Offering  Stand-Alone and Add-on product  Marketed under the brand name MetLife  Lockbox will have its own microsite under MetLife  Revenue Sharing  30% revenue share to lockbox  Branding and marketing cost handled by MetLife  Yearly License fee : 500K  Additional Support/training fees  Product Pricing  Add-On  29.99$ per year for 250GB , unlimited passwords, 10 beneficiaries  49.99$ per year for up to 750GB , unlimited passwords, beneficiaries  Individual Product  69.99$ per year for up to 750GB , unlimited passwords, beneficiaries  Support Support & Training to be owned by LockBox
  • 7. Market Evaluation LockBox MetLife • "Awareness” phase of Marketing Funnel • White box solution • No Brand Marketing required • Acquire market share • #1 insurance company • Brand Differentiation • Sticky Customers • Increased Revenue Awareness Very Low Likeability Unpredictable Market Share None Decision Partnership Awareness High Likeability High Market Share High Decision Extend
  • 8. MetLife Customer Segment  MetLife Loyalty Customers : 0.8 M households  MetLife Multiple Insurance holders :2.7 M households  Target Customer Profile  Aged 45 and above  High Net-worth Individual  Policy holders with Maximum value  Potential 800K customers 20 20 40 20 Customer Age Profile 18- 35 35- 45 45 - 65 >65 45 25 20 10 Customer Income Profile <60K 60 to 100K 100- 250K 250K and above
  • 9. Hank Marsh Personal 48 years old Construction Architect, Family Business Married with Kids Net-worth about 720K Passionate on building design and Interiors  Loyal MetLife customer for 10 years  Has Auto/Home/Life insurance  Maximum coverage on all his policies  Recently Signed up for MetLife Financial planning  Prefers High premium - Low deductible policies Behavior Fear of Loss Strong Desire for Disaster Recovery Planning Desire for Inheritance
  • 10. Partnership GoTo Market Objectives Product Awareness Customer Acquisition  Customer Retention
  • 11. Partnership Marketing Strategies
  • 12. Display Ads  Drive Awareness  Banner Display Ads  Google Ads - Demographic/Contextual/Remarketing  ROI :CTR per CPM obtained from Search  CPM costs 12$ per 1000 impression (Google)
  • 13. SEM/SEO SEM  Partner with Google / Bing  Generate leads and drive awareness  Targeted SEM keywords  Revise Strategy based on CTR Rate  Smart Bidding : Long Tail keywords  Sample SEM Keywords o Digital Living will, Digital locker o Insure Digital Assets, Digital Inheritance o Assign Beneficiary ,Preserve digital data o Asset inheritance, LockBox o Secured Storage, Password manager
  • 14. Email Marketing Drive Awareness and Generate Leads Target specific customer segments Personalized Email : Unique URL and Toll Free number Mobile e-mail friendly ROI : Site response view & Click-through Omniture Retarget based on response
  • 15. Offline Marketing Direct mail to targeted segments Full page Magazine Ads by MetLife in AARP MetLife Catalogues for Lockbox product Direct CS Sale calls
  • 16. Marketing Budget Baseline  MetLife Home & Auto Customers : 2.7 Million  MetLife Loyalty Customers : 0.8 Million  Total marketing budget : 7.2 Million USD for 3 years  Budget for Online spending – 60%  Budget for Offline spending – 40%
  • 17. Q3 2013 Q4 2013 FY 2013 FY 2014 FY 2015 FY 2016 Standalone Sales Revenue $0 $0 $0 $240,000 $456,000 $651,000 Add On Sales Revenue $0 $0 $0 $2,160,000 $4,104,000 $5,854,000 Total Revenue (Margin share) $0 $0 $0 $2,900,000 $5,060,000 $7,005,000 Lockbox License Revenue $0 $0 $0 $500,000 $500,000 $500,000 Hardware and Operations Cost $800,000 $400,000 $1,200,000 $1,200,000 $600,000 $400,000 Development Costs $750,000 $750,000 $1,500,000 $1,800,000 $500,000 $500,000 Brand Marketing Costs $0 $929,000 $929,000 $2,198,000 $2,198,000 $2,198,000 License Fee 0 0 0 $500,000 $500,000 $500,000 Total Cost for LockBox $1,150,000 $2,700,000 $3,000,000 $1,100,000 $900,000 Gross Margin for LockBox (30% revenue Share & License Fee) ($2,200,000) ($1,780,000) $768,000 $1,701,500 LockBox Revenue Projection Common Revenue from Product Sales Cost for LockBox Cost for MetLife
  • 18. Partnership Evaluation Pros  Partnering Market Leader – Great Head start  Access to a larger Market Segment  Total Save on the marketing costs  Product awareness to a large customer base  Potential open up for new ventures in future Cons  Hardware & Operational cost not shared  Customized Developmental costs could be higher  MetLife cautiously optimistic on the product  Limited Exclusivity with MetLife for 3 years  Failure could mean more to LockBox than MetLife