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Carfree.co Customer development

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Carfee.com startup story describe how business model evolve along with the customer development process. This shows how important it is for entrepreneurs to get out of the building, get hypothesis tested before actually invest tons of money and time on starting up.

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Carfree.co Customer development

  1. 1. Customer Discovery Process [extract] Nicholas Hinrichsen — nicholas@carfree. co Chris Coleman — chris@carfree. co
  2. 2. 1. Here is what we thought: .17 -: .ma1l from Chris to Nicky on May 16”‘ Wliy don’t we sell other peoples cars’? 1112211 lRead immediately. I'm really excited Z Z Z 1 Z 3 i Inhox (43) Chris Coleman - . Slarred Attached Imporlanl Sent Mall Duns 14) '1] (IZ9II'I: is_IIi’ea_ofD. aIy. I(iIIrr)Icx V 00_AnnoIIn: emen Chris_Idea_ofDay. docx Add .0 Dnve sun onllne Download 0.41,. ..» Frle ‘slew Help < E15 901 me lo Ihrnkmq - WHY DON'T WE SELL OTHER PEOPLE S CARS7 221221222111 They dam wanl lo do II Its an annoyung process and most oeople know nommg aboul n We don'I Mod anylmng Io do II, just to bust our asses creatrrvg aulmrader CIal(_; slISI and cars com ads FImhermoIe I m I! Socnlty Iruslcd car resource alreaoy at Inc 653 I m no! men out 10 make rnonev an Inrs — I Iusl are dome I1 and DIBODIQ have oacred I0 Dav me I0! II It’: a low mzrgln, but we can sell A LOT oI rm. We can betome a trusted thud-party broker. And yeah, some 4:! these type sewnces mzy amt, but I acmally don’t care: I think I have enough soaal leverage Ito where we are united by our Inends, who‘: Inends mu (hen trust us, who‘; Im-nds mm us 90 our — 2 2 2 2 2 K 2 2 2 K 2
  3. 3. .’3‘, l;: ;»l-; 2. Here is what we thought Customer Segment Value Proposition Channels Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship Seller: GSB students Buyer: Craigslist (i) We sell your car privately for YOU (ii) We always get more than KBB GSB blast emails We can charge 5% commission Detail, photograph, inspect, list, price based on comparable cars Chris’ sell expertise to inspect, list, (i)$l6 for car wash (ii)Sellers cover listing fees / did: We approach our classmates We list cars on Craigslist We respond to people who already reached out to Chris asking for help. We send a blast email offering our service We write: “in order to validate our service, we'll have to charge 5% commission for our service” We go through the process and list cars on Craigslist Chris will be driving the process We tell people we'd pay for detailing but sellers would need to pay listing fees
  4. 4. , Key E’ Key . v . ..«__, v:_-. activities - Detail Photograph Inspect List Price based on comps -1 / :4 , ‘»ivi_Key resources Chris’ expertise to inspect Chris’ expertise to list Chris’ expertise to sell Cost structure $16 for car wash Sellers cover listing fee 4 Costumer 9? segments I! Costumer relationships ,1-'97; Value Kg proposition It 1011 your ear privately for you lo always get sore than Ill C Channels V GS! blast enail Buyers are on Craigslist V . - -7; . V, ‘ 1 Revenue streams we can charge 5% commission
  5. 5. 3. Here is what we found: we segment a Customer Segment Value Propos it ion Channels Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship We approach our classmates We list cars on Craigslist We respond to people who already reached out to Chris asking for help. We send a blast email offering our service We wrote: “in order to validate our service, we'll have to charge 5% commission for our service” We went through the process and listed cars on Craigslist Chris will be driving the process We told people we'd pay for detailing but sellers would need to pay listing fees Classmates value our service We sold our first car on CL We acquired car sellers We got more than KBB Our blast email lead to 10 inbound requests People did agree to pay 5% commission We did all of this and it worked. Classmates laughed about us, cleaning other classmates’ cars. Chris’ expertise is only needed for inspection. Listing and selling a car doesn't require in—depth car knowledge We paid $16 for carwash, if we didn't detail the cars ourselves. Sellers did agree to pay listing fees if applicable.
  6. 6. 4. Highlights: We were asked to leave the p arkiiig lot where we ‘t1“ied. ’to sell a car i -. 2 1 "T’. ... ".'s. 7 F fi”11|'~; =:r-iv; -i_'r= _—_= ':‘L‘ifiI. _-. -,I1J3-*_ ”rmrllmw‘*~ ‘ iii: ii iii‘ iii liii l"l ll; "V. .___'
  7. 7. .'3ll; if-ii-. ‘ ’ 5. New Customer Archetype: ht I'm. l»r-liiwvoi . ?.’ 30 ’t‘tU'S nltl, tinting ll guy my ugu lmwi iiuliuuw i ruutiiuil 54$'tl4.l(((llt’(1 , ‘i'm)1 , r‘lnnL I'M, lA’«l’tVI: { Um’ . ’1.6'I‘(/ K (0 Hi(7i‘ In the , umu uly ‘. L'}4‘l'l‘ my Ivrwliimui Zums iuizl (l1I'l'(LL1i’ ; 4.{r‘-' u. will Pll’IQ'Al, ml» lock. -ti. up I nunt In , «-Urnw cur Ind I don't wzuil In {rzuiv it in IE1 lnxiw _¥(7))lA’IV)I" In _i‘U my mu‘ pi’: *. u(z'l_5‘ for 1711‘ and Hutu om / Lt’ (iu; u'l1ui; ]lI't( u I L'iU'«14‘/ ii4(t'l‘, ' ]‘it}' {Or UM’ itHi'nu'n4-‘
  8. 8. Week 1
  9. 9. 1. Here is what we thought: We can maximize the selling price. Need to adjust pricing to give us higher incentives. We can also sell cars for other Stanford students and can reach them through flyering their cars.
  10. 10. 2. Here is what we thought Customer Segment Value Proposition Channels Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship Other Stanford students We maximize the selling price (i) We can reach other Stanford students (ii) We can get more customers to refer new business to us Introduce pricing model that gives higher incentives for us to maximize price Sellers cover cost for smog test / did: Experiments Try to reach them through flyering their cars We list cars at private party value and get good at haggling (i) We put flyers on their cars (ii) We ask existing customers to post their experience on Facebook Offer to customers to choose from: either 5% or 25% for every dollar above trade—in We learned, every used car sold needs a smog test. We told sellers they have to pay for it
  11. 11. Costumer ‘:7. segments ‘ Costumer —-/ - relationships . _} Value Key W -» Key 3 partners . ~1r, },, g—~. activities proposition ¥ De tail J We sell your car (GSB students privately for you (Photograph other Stanford «We always get more students {Inspect than KBB «List 1 Price based on comps We maximize private selling price A 4 "' r , _ ‘,2; Key resources §# Channels W ’GSB blast email J Buyers are on Craigslist Jchris’ expertise to inspect flyers on parked ' cars across campus te—l. -i-5-E Iord of llouth Gh«r: '.—s1—eaepe: .-4.= i.—se Social Ibdil to—se—1—l Cost structure Revenue streams x {$16 for car wash (we can charge 5% commission (Sellers cover listing fee we need to align incentives, 2"‘ pricing option 25% of every $$ above KBB trade-in Sellers cover Smog test
  12. 12. 3. Here is what we found: BMC Segment Customer Segment Value Proposition Channels Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship , Experiments Try to reach them through flyering their cars We list cars at private party value and get good at haggling (i) We put flyers on their cars (ii) We ask existing customers to post their experience on Facebook Offer to customers to choose from: either 5% or 25% for every dollar above trade—in We learned, every used car sold needs a smog test. We told sellers they have to pay for it We weren't successful reaching other Stanford students. We stopped reaching out to them also because we got too busy with GSB students People were actually hoping for the maximum price. ** BUT we can't promise to get more than KBB for every car because the market for one of our vehicles traded below KBB (i) flyers didn't work. (ii) Facebook posts lead to referrals. The 25% above KBB trade—in option confused a couple of people but the idea of higher incentives was well perceived from around 50% of our customers. Sellers agreed to pay for it and some offered to get it themselves.
  13. 13. 4. Highlights (page 1/ 2): Stanford "l‘ransportat1on *««~+. ... .Y: p‘*’~s"f. :‘. :;, pa; ». department told us to c2i’. ::z». .. . . zero has ‘ M/2:60 0763 or H7 stop flyering V€l11Cl€S We postponed reaching out 1 r°’W Sold for $15,750 - that's $4,000 above trade-in
  14. 14. 4. Highlights (page 2/2): Friends: Are you leaving town and not planning on taking your car with you’ Last week, I sold my old used Nissan without literally clicking one button, talking to any buyer, taking any pictures, haggling over prices, or worrying about when and if a buyer was for real. How? I let Chris Coleman and Nicholas Hinrichsen do all the work for me. Chris and Nicky are car experts, and they've launched a new service that let's you completely off the hook for all the hard work that comes with selling a used car. They use their marketing and auto expertise to list it for you on multiple marketplaces, they detail the car and take photos, they meet with prospective buyers and negotiate on your behalf, they handle all the title and dmv paperwork. They basically take all the pain and hassle out of selling your used car. If you're thinking about selling your car on your own — I highly recommend reaching out to Chris and Nicky first. (Happy to put you in touch with them if you don't know them personally - just comment below or send me an email. ) 2006 Nlssan Senna 5‘ 39k miles Li? -me Comment Sha'e Sold for $8.500-that's 1. nabgvetrade-in ox
  15. 15. Week 2
  16. 16. ‘''I‘i; ::. .i‘ ‘ 1. Here is what we thought: W e need to find out whether we can sell cars of people who don’t know us ‘ll. /if e need to set up a few landing pages and drive traffic to them through Adwords P1118? we need to approach people on Craigslist offering them help to sell their cars
  17. 17. 2. Here is what we thought Customer Segment Value Proposition Channels Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship Get customers who we don’t know (i)We list and sell your car for you (ii)We tell you the fair price of your car (iii)We get more than trade—in for your car (iv)We explain how to list and sell your car privately Adwords Craigslist / did: Experiments Run Google Adwords with different value propositions We set up four different landing pages with different value propositions respectively and drive traffic. We also approach existing Craigslist listings and offer help with selling their cars. Can we attract customers with Adwords? Can we attract customers through direct (e)mailing?
  18. 18. N .4/‘ Key partners Key g»7—-, activities V’ De tail {Photograph {Inspect JList ~/ Price based on comps Ll ‘Q. /1‘i: _ Key resources {Chris ' expertise to inspect Cost structure {$16 for car wash (Sellers cover listing fee (Sellers cover Smog test 4 We list G sell for / Costumer -- relationships Value {fish} Kg proposition {We sell your car privately for you {We always get more than KBB Google Searchers */ we maximize private selling price Channels less blast email ' eae—aeress-eapue {Word of Mouth YOU { Buyers are on Craigslist We tell you the fair car price We get more than trade-in We explain how to list & sell privately Google Advords Approach CL seller - Revenue streams {we can charge 5% commission t/ we need to align incentives, 2"“ pricing option 25% of every $$ above KBB trade-in
  19. 19. l . '3‘. l;I; »,i-_ e 3. Here is what we found: Customer Segment Value Proposition Channels Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship Run Google Adwords with different value propositions We set up four different landing pages with different value propositions respectively and drive traffic. We also approach existing Craigslist listings and offer help with selling their cars. (i) Can we attract customers with Adwords (ii) Can we attract customers through direct (e)mailing People are indeed interested in our service and reach out to us through our website Three out of our four landing pages successfully attracted customers. In total two of the website viewers converted into real clients! The value prop: “We tell you the fair price of your car” didn't convert into customers. It's actually not our service at all. (i) Google Adwords worked. (ii) Out of our direct emails over Craigslist, a few people reached out to us asking for help.
  20. 20. 4. Highlights (page 1/ 2): We sold a car of a Significant H Other of one of our classmates Sold for $10,200 - that's $2.775 above trade-in Classmates left the and left cars with us Classmates don’t know condition of their cars We need in-depth inspection of cars Through our landing page experiments, an elderly woman reached out to us asking for help We got interested in : .ié; f;i*: ; ;.: L ; r:; :;: : A buyer left $100 deposit for a car but bailed out and called the bank to declare check stolen
  21. 21. carfree GET MORE THAN TRADE-IN VALUE FOR YOUR CAR HOIIE GUARANTEE l FRIONG YESTWOMALS FAQS ABOUYUS carfree 1 CONFUSED HOW TO SELL YOUR CAR'? iWE CAN HELP! nous | GUARANVEE l PRICWG l rzsnuomus l FM): | Aaourus CONFUSED ABOUT THE VALUE 0!‘ YOUR CAR? We'LL HELP! HOME l GUARANYEE l PRICING | rssnuomus l FAQs | ABOUTUS HOW TO LIST AND SELL A CAR? LET US 130 IT FOR YOU!
  22. 22. Week 3
  23. 23. l '1'? ! slow}-; 1. Here is what we thought: Change—in—life—events occur when people move into senior residencies l/ lOl"€OV€l‘, Linkedln should be a good source to actively approach people with change—in-life- events We need to have ll? ower of Attorney to sell cars of people who left the country
  24. 24. l t 9. L . Ylileaes; 2. Here is what we thought Customer Segment Value Proposition Channels Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship Elderly people People with Change-in-life-events are frustrated about the process of selling their used cars (i) Senior residencies (ii) Linkedln ads (i) We need Power of Attorney from sellers (ii) Sellers are not transparent about condition of their cars / did: Go to senior residencies, interview people and hang up flyers Pitch value proposition to people with change—in—life—events, e. g. senior residencies, Linkedln ads. (i) visit senior residencies and talk with staff (ii) run Linkedln ads (i) Ask for PoAs from sellers (ii) Perform in—depth 125 point inspection of cars for sale before pricing them
  25. 25. .; _, Costumer ‘ii segments A Costumer -— relationships . Key partners Key activities J Detail, photograph, J We sell your car (GSB students inspect, list, privately for you price based on comps Ask for PoA (Google Searchers ‘/ We can get more than KBB Elderly people {We maximize private selling price 125p inspection, sellers lie / dont know their cars 1 _ 4 We list & sell for /1‘ you §fi’_Key resources ” W H J e ‘/ We get more than trade-in Channels W 1653 blast email (Word of Mouth (Google Adwords J Buyers are on Craigslist / Chris’ expertise to inspect {We explain how to list & sell privately {Approach CL seller Senior residencies Frustrated selling your used car’? Linkedln change of life events V . -~, V_ Cost structure Revenue streams ($16 for car wash (we can charge 5% commission (Sellers cover listing fee «we need to align incentives, 2"“ pricing option 4 25% of every $5 above KBB trade-in Sellers cover Smog test
  26. 26. 3. Here is what we found: BMC Segment Customer Segment Value Proposition Channels Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship Experiments Go to senior residencies, people and hang up flyers Pitch value proposition to people with change—in—life—events, e. g. senior residencies, Linkedln ads. (i) visit senior residencies and talk with staff (ii) run Linkedln ads (i) We asked for PoAs from sellers (ii) We need to do in—depth 125 point inspection of cars for sale before pricing them interview : ‘ ll“l! Y’II~ We managed to hang up flyers on the bullet—in board of the senior residence nearby Value proposition resonates well with elderly people (i) staff of senior residencies are very protective of their seniors but we were offered to hang up flyers (ii) Linkedln doesn't offer “change—in—life—event” triggered ads (i) Sellers understand the need and cover the $10 (ii) We realized the urgency of a detailed inspection
  27. 27. Was: ‘ 4. Highlights (page 1/ ): ‘We’Ve got flyers at the senior 1*es1dence nearby We learned a lot about the needs of elderly people l l :1Ixogu: r-m: r—. ~’oitvI? -z_, 45:): unra: L E ,7 ll“ I H 3- Sold for $12,400 - that's $1,275 above trade-in sow for $3350 . mars $2.325 above gradem
  28. 28. 5"! :1 4-. 4. Highlights (page 2/ 2): A potential buyer got really mad at me Pie thou ght l’1n a used car dealer t1‘y1ng to screw hnn I-iis firiencl had discovered our landing pages 50 NICK, Anything goes if it's business. Screw the little guy and use lame excuses as buyer beware. I KNEW the car was WAY over valued. You have no conscience. And this is why America has gone down the tubes. No integrity and greed. You lied to me. I don't want to have anything to do with you.
  29. 29. 5. New Customer Archetype: / V l / u". I'M lvttwuu 1-)’ - 5')’ Lynn) aid m1.d_ moi/ u( into A smivr ren'¢(mr. :. imlfn nun Ago. Although I mutiny like my cm, afuikich I've n1w'm/ Ismluvxqavcimrc, it’: alarm! timt to sell it. I rut A lvt afcallsfmn smn-. m¢n w’/ w off: -.7 tvfrm/1'4: may 1u'mi_s afscvx/ ices tame. lmt I¢(mx't trmt mu/4 of them. faulty trust sen/ (us : .ndyrsed_ lay the ve$id_t. m:: . nvscfiflvyzn m the intcnml lmllttin lvmvd. ) I'm frmtmtui wit! » the pmm vfszlli: -7 my {M , and u/ mlc{}zrzfu tv /9A| ;fI7V the Lam/ embscc ifwmeane an can sell it an nu; in/ mlf. /)
  30. 30. Week 4
  31. 31. "i'i; x = _—<. .-_{~_ A}. 1. Here is what we thought: Tesla customers will need to trade—in their car but Tesla doesn’t take trade—ins There might be an opportunity lfiuyers Wlll trust us more if we disclose that we’re making 5% of the sale Leveraging information from Li11l<eCll11 will make buyers ‘trust us more
  32. 32. 2. Here is what we thought / did: Experiments Customer Segment High net—worth individuals Go to Tesla where high net—worth individuals face the problem to trade in their car Value Proposition Help sell car if seller is Ask people at Tesla to put us in unmotivated to sell it themselves touch with their customers, who over Craigslist face the painpoint Channels Tesla dealership on El Camino Ask people at Tesla to put us in touch with their customers, who face the painpoint Revenue Streams Key Activities (i) Explaining our role to buyers (i)Tell buyers our role and will enhance trust compensation (ii) Leveraging publicly available (ii)Make Linkedln profiles Linkedln information will create available transparency for buyers Key Resources Cost Structure Key Partners Tesla to work with us Ask people at Tesla to put us in touch with their customers, who face the painpoint Cust. Relationship
  33. 33. is} 3* J Full listing ¥ Ask for PoA {125p inspection Key : —»_ activities Key g partners Tesla Explain our role to buyers Leverage Linkedln for transparency J-i Key resources J Chris’ expertise to inspect Cost structure J$16 for car wash «Sellers cover listing fee Jsellers cover Smog test {We list & sell for , ’ Costumer relationships / «nun V/ We sell your car privately for you ‘/ We can get more than KBB 1 We maximize private selling price YOU. Channels x/ ass blast email ¢ Word of Mouth (Google Adwords ¥Approach CL seller J We get more than trade-in (We explain how to list 5 sell privately ‘/ Fr“-°‘trat°d -"°1-ling «Senior residencies your used car? 3 _ It-rnkedi-n—eha-nge—o-E Unmotivated sellin 3:5.-£e—e'V'eB-‘l3'S' Your used car? Tesla dealership Revenue streams (we can charge 5% commission Costumer segments ‘ «GSB students «Google Searchers Elderly people High net-worth Tesla cus tomers ¢ Buyers are on Craigslist Jwe need to align incentives, 2"“ pricing option 25% of every $$ above KBB trade-in
  34. 34. 3. Here is what we found: BMC Segment Customer Segment Value Proposition Channels Revenue St reams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship ifixperiments Go to Tesla where high net—worth face the problem to trade—in their car Ask people at Tesla to put their customers, who face the painpoint, in touch with us Ask people at Tesla to put their customers, who face the painpoint, in touch with us (i)Tell buyers our role and compensation (ii)Make Linkedln profiles available Ask people at Tesla to put their customers, who face the painpoint, in touch with us People at Tesla confirmed the pain for the customers and are keen to find an alternative to provide a better experience to their customers — see above — — see above — (1) Buyers ask: cool, what other cars do you have for sale? (ii) Some buyers appreciate transparency — see above —
  35. 35. l . 'i'. l;lT—»= ,l‘; A_: 4. Highlights: Tesla employees on El Camino offere d to refer customers to us Tjuyers love our role disclosure “cool, What other cars can it check out? ” Cne buyer trusted us because of our bacl<grounds, winch he researched on Ln1l<ed. ln Sold for $8,500 - that's $1.475 above trade-in
  36. 36. Week 5
  37. 37. l 'l'l§l§‘v. l‘; ‘K 1. Here is what we thought: ‘A7 e can sell a lemon through disclosing its sliort—coinings. “For Sale” signs will attract buyers on high- traffic spots to less-desired cars We should fix the price of our cars, don’t haggle but share the way we price our cars.
  38. 38. 2. Here is what we thought / did: BMC Segment Customer Segment Value Proposition Channels Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship “. r Sell lemons through fully disclosing the flaws of the car Full convenience, “car magically disappears” while in daily use “For Sale” signs on targeted high- traffic areas will help sell less- desired cars If not in writing, trade—in offers are not a good basis for pricing. Fixed price transactions are better for everyone involved. lExperiments List a lemon (i) Park a less-desired car with “For Sale” signs on targeted high- traffic area. (ii) Run ads on Autotrader. com Ask people for written trade—in offers and compare with initial promise. (i) We should fix the price of our cars (ii) Don't haggle but share the way we price our cars.
  39. 39. viz Key . »ir, :,, g«‘ activities Key partners l Full listing J Ask for PoA {125p inspection Explain our role J Leverage Linkedln for transparency «Tesla Show buyer pricing Fixed price -. L / ? K‘ i___Key resources Jchris’ expertise to inspect Cost structure {$16 for car wash (Sellers cover listing fee {Sellers cover Smog test 4 Costumer 9% segments ‘[ / Costumer -— relationships ,4.-2:? Value Kg proposition Jwe sell your car privately for you {GSB students {Google Searchers (We can get more than KBB We maximize private selling price {We list & sell for you w’ We get more than trade-in Elderly people High not-worth Tesla customers {-15 “avg" woman (approached us! ) Q Channels {Buyers are on " Craigslist (GSB blast email ord of Mouth Frustrated selling G°; ::: c:d: :r: :l1er our used car‘? . . . Y Senior residencies w/ Unmotivated sellin (Tesla dealership your used car‘? For Sale signs at CI! to “inagically high-traffic spots disappear” for a Autotrader ads fair price V We explain how to list & sell privately Sell lemons through full disclosure (3 _. Revenue streams (we can charge 5% commission ' % J we need to align incentives, 2"“ pricing option 25% of every $$ above written trade—in
  40. 40. 3. Here is what we found: BMC Segment Customer Segment Value Proposition Channels Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship (Experiments List a lemon (i) Park a less-desired car with “For Sale” signs on targeted high- traffic area. (ii) Run ads on Autotrader. com Ask people for written trade—in offers and compare with initial promise. (i) We should fix the price of our cars (ii) Don't haggle but share the way we price our cars. Lemon doesn’t attract traffic through full disclosure (i) Zero calls, no analytics, no objective way to (in)validate hypothesis (ii) No success. Trade—in offers in lower than initial it's a big pain to written cash—offer place. writing are promises and actually get a in the first Buyers always expect to haggle. We shouldn't try to change that behavior. Agree on fixed price with seller, add buffer for haggling in listing.
  41. 41. Water it 4. Highlights (page 1/ 2): Successful referrals from the senior residence nearby }‘i-lTD Tesla’ ' ' Ap art from tliat, a buyer for a different car got angry with us He realized his car smells like smoke after he bought it ‘We felt terrible because we hadn’t noticed the smell Sold for $28,950 - that's $4.450 above trade-in
  42. 42. 'I'lf—I 4. Highlights (page 2/ 2): Lemons don”t attract buyers through full transparency We can set a minimal price of $400 for our services if 5% commission is not El"["'£1"'8tC"L’lV€ "~'; p-. ‘.b: ‘_iil'-i'ri, 'Z; ;/1 ; g “ J, 3'’; .-G- ' 7 I, » I’ 1 is Sold for $2,250 » that's $1.175 above trade-in
  43. 43. 5. New Customer Archetype: .1 ii / '5 / /ga / Ki/ ‘ ‘ / ‘ lni lri-luu. wi H -’«' * ~. v'4(«". will, ‘.5lI"(1'. (OL': inst’ nu‘~. v<l ioiivrlhc ill‘: K L i Lu? -i( lA'(‘(f iw, mu ti lnl until Jan I i-uni! to ! ll(‘. {M an ! ‘ill‘K(1lA$)‘i'l| )ll(, w'ui}~. 1.1:-'i'. ~. 1 wzuxi ! z'r §J(: ( rid of ma’ «av i . z'm" ixwuu. In imuqnu ; r’ (in: ,u(iu: i in um l*uuu1.« DH‘. mlv us is | 'l’l7 . {4'auisuu , "Ll‘, mi» iwii I nut lut1.'i’lu' i’im: ¢,ll[ In }iu, '.- ! <'v Hl4‘(‘( and :11» -in (ind . lo'n. u'. wilii rum/ .17»): nzwn, i. '}‘m I at : ,ci. m win‘ I innit )H rue‘ fr‘ »)iiu; ;:utU_ iititigifn-tic‘ ("4Z : >vi.1« i1I7,l‘(' )m :1 fun fiiniw
  44. 44. Week 6
  45. 45. ’. 'i; a;i_i-, 7’ 1. Here is What we thought: W e can sell a lemon through non disclosing its short-comings in ads but setting a low price The pain were addressing is so obvious) we should create more visibility of our service to capture demand
  46. 46. 2. Here is what we thought / did: BMC Segment w, : . lExperiments Customer Segment We can sell a lemon through non Re—list the lemon disclosing its short—comings in ads but setting a low price Value Proposition Channels We can attract customers by Wear branded sweatshirts, tell increasing visibility of our everyone, who is involved in the service. process of a used car transaction, about our service. Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship
  47. 47. , / “ .1. Key Key & partners .4/, _: »_-, activities '/ Full listing {Ask for PoA 125p inspection Explain our role Show buyer pricing J Leverage Linkedln ' (Tesla »L , ‘, ii’ Key resources #- ~ Jchris’ expertise to inspect Cost structure {$16 for car wash {Sellers cover listing fee {Sellers cover Smog test 4 Costumer 9'1 segments 1 [ / Costumer --— relationships Value Kg proposition {We sell your car privately for you (GSB students [Google Searchers ul Elderly people {High net-worth Tesla customers {We can get more than KBB We maximize private selling price {We list & sell for you {We get more than trade-in J45 “avg” woman J Female banker (approached us! ) { Buyers are on Craigslist ‘ through-f-u-Ll diselesure Channels {GSB blast email {Word of Mouth (Google Adwords (Approach CL seller {Senior residencies (Tesla dealership ' 1 . 1 EE. ‘ (carfree schwag We explain how to list & sell privately Frustrated selling your used car? Junmotivated sellin your used car? a/ Car to “magically disappear" for a fair price V Revenue streams Sell lemons thr- ough no disclosure but low price 4'3 ¢we can charge 5% commission { we need to align incentives, 2"‘ pricing option 25% of every $$ above written trade—in
  48. 48. 3. Here is what we found: BMC Segment , ExpeLiments Customer Segment Re—list the lemon Lemon doesn’t attract traffic through full disclosure Value Proposition Channels Wear branded sweatshirts, tell When we verified payment of a everyone, who is involved in the buyer, the female banker asked what process of a used car transaction, we were doing and loved our value about our service. proposition. She asked us to sell her car. Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship
  49. 49. 4. Highlights: W7 hen we verified payment of a buyer, the female banker asked what we were doing and loved our value proposition She asked us to sell her car She even offered (1) to feature us as “Tlie Business of the Moiitli” in their client magazine and (ii) to set up CarFree banners in her branch
  50. 50. Week 7
  51. 51. .'i‘. lr: ;:; :.i-. 1. Here is what we thought: if potential buyers like it when we trust them, we should share our inspection report with them . Lemons can be sold through eBay
  52. 52. 2. Here is what we thought / did: BMC Segment [Experiments Customer Segment Value Proposition Channels Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship We can sell a lemon through eBay and signal its flaws with a low buy—now price. All cars should have “For Sale” signs. If potential buyers like it when we trust them, we should share our inspection report with them. We want to be the top of mind solutions / service for private party sale money and trade—in experience. Re—list the lemon on eBay Put “For Sale” signs on all the cars for sale. We leave a copy of inspection report. Introduce us with: “we get you the money of a private sale with the convenience of a trade—in. "
  53. 53. ’ ‘A Costumer segments ‘I Costumer --4 relationships Key gs" Key partners ’a, §,, /»g_ activities “We get you the ¥GSB students m°“eY °f '3 Private ¥Google Searchers sale with the J Elderly people convenience of a J High net-worth trade —in” Tesla customers ¢ We sell your car privately for you JTesla ¢Full listing J Ask for PoA 125p inspection Explain our role Show buyer pricing Leverage Linkedln Show inspect repor ¥ We can get more than KBB We maximize private selling price J We list & sell for you 4 We get more than (45 “avg” woman «Female banker / . Kj_Key resources trade--m We explain how to Craigslist fchris’ expertise list & sell {GSB blast email t° lnspect privately (Word of Mouth «Frustrated selling {gocgle Adwords your used car? ¢APP1'°3°h CL 531151‘ Sell lemons thr- ‘/ Unmotivated sellin J Senior residencies Ough 6333!? 1°" your used car? “bu now” rice ¢car to “magically {Tesla dealership Y P disappear” for a Jcarfree schwag fair Price All cars “For Sale’ V Cost structure i Revenue streams ($16 for car wash Jwe can charge 5% commission ~/ Sellers cover listing fee ¢ we need to align incentives, 2“°‘ pricing option ¢ 25% of every $$ above written trade-in Sellers cover Smog test
  54. 54. 3. Here is what we found: BMC Segment Customer Segment Value Proposition Channels Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship Experiments Re—list the lemon on eBay Put “For Sale” signs on all the cars for sale. We leave a copy of inspection report. Introduce us with: “we get you the money of a private sale with the convenience of a trade—in. ” Highest bid was lower than a fair selling price. Sellers found the folder in the car professional”. We calls from people signage and “very started getting who saw our cars for sale on the street. Buyers really appreciate the transparency. “We get you the money of a private sale with the convenience of a trade—in” resonates very well with sellers.
  55. 55. 4. Highlights: 2002 Acura RSX, 118k miles Sold for $8,200 - that's $2,900 above trade-in
  56. 56. Week 8
  57. 57. .'2'. i;= ;+l-_ 1. Here is What we thought: 'i/ .7 e need to provide sellers with regular updates and statistics about their ads and the sales process
  58. 58. Week 8 2. Here is what we thought / did: EEEflmIIIIIIIIIIIIIIIIIIIEQMEHIIIIIIIIIII Customer Segment Value Proposition Channels Revenue Streams Key Activities (i) Provide sellers with regular (i) We send emails on Sundays and statistics about their ads and the Wednesdays about # of views, # of sales process. calls / txts / emails # of test- drives and $$ offer. Key Resources Cost Structure Key Partners Cust. Relationship
  59. 59. .. ’,( N Key .1/, ;_»y—-, activities Key partners I Full listing Ask for PoA 125p inspection Explain our role Show buyer pricing Leverage Linkedln (Tesla Autoflation {Show inspect repor - Buyers want stats Li / L y , N] »l__Key resources . Jchris’ expertise to inspect Cost structure {$16 for car wash (Sellers cover listing fee {Sellers cover Smog test 4 / Costumer -- relationships Value r‘»-"’-1; Kg proposition {We sell your car privately for you J “We get you the m°“eY °f 3 Private {Google Searchers sale with the convenience of a trade—in” {We can get more than KBB We maximize private selling price {We list & sell for you J We get more than trade—in {High net—worth Tesla customers 445 “avg” woman {Female banker Channels (GSB blast email (Word of Mouth Frustrated selling (Google Adwords Y°ur used car? {Approach CL seller Junmotivated sellin {Senior residencies your used car? {cu to “magically / Tesla dealership (All cars “For Sale’ disappear" for a fair price V .53 . Revenue streams 4 Buyers are on Craigslist We explain how to list & sell privately Sell lemons thr- ough eBay: high “buy now" and low reserve price {we can charge 5% commission {we need to align incentives, 2"‘ pricing option 25% of every $$ above written trade—in
  60. 60. Customer Segment Value Proposition Channels Revenue Streams Key Activities Key Resources Cost Structure Key Partners Cust. Relationship _’i‘l; : ; +-. }_ 1+ 3. Here is what we found: (i) We send emails on Sundays and Wednesdays about # of views, # of calls / txts / emails # of test- drives and $$ offer. (i) Sellers absolutely love our update emails and read them.
  61. 61. And much more . Contact us in case you want to hear about the latest experiments we ran, especially how to scale our bl1S11l€SS. Nicholas Hinrichsen »- iiicl1olas(<i‘~cai'fi'ec. co Chris Coleman ~ cli1‘is(«7"carf1‘ee. co

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