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NeurodiversityNerds engr 245 lean launchpad stanford 2019

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business model, customer development, e245, engr245, lean launchpad, lean startup, stanford, startup, steve blank

business model, customer development, e245, engr245, lean launchpad, lean startup, stanford, startup, steve blank

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NeurodiversityNerds engr 245 lean launchpad stanford 2019

  1. Our Journey
  2. NEURODIVERSITY NERDS
  3. KIM SCHREIBER MBA “Picker” KIM SALONER MBA “Hustler” EMMA CHEN Master’s in CS “Hacker” PAULINA BIERNACKI Education PhD “SM Expert” TIFFANY LIU CS Undergrad “Hacker” Week 1 App to help adults with autism develop confidence and independence MARIA LENA POPO “Mentor” SABRINA RAMOS “Designer” NEURODIVERSITY NERDSPocketRobin Now Intelligent Meltdown Manager for adults with autism 120 interview s
  4. Value Propositions Channels Customer Relationships Customer Segments Key Resources Key ActivitiesKey Partners Cost Structure Revenue Streams Local resource centers & non-profits particularly with housing and vocational resource matching Local Governments National NGOS: Autism Speaks, Easter Seals Initial skill assessment Individualized goal setting Interactive learning modules Engineering Neurodiversity expertise Week1 Suppliers: App platforms and cloud service providers Gamification & certification Community-building Education Curriculum Design Marketing To increase independence and confidence of adults with autism To relieve caregiver burnout and increase caregiver confidence in abilities of their dependents To provide fun and simple to use skill- building curriculum built specifically for adults with autism via a mobile app Automated services - personal online profile, customized user experience via assessment Communities App platform 30% fee Continued development costs Marketing/advertising Content development & research Technology support services Mobile App Via Caregivers Mobile App via Word of Mouth • Local resource centers • Meetups • Blogs Adults with DSM 5 Level 1 and Level 2 autism spectrum disorder Caregivers of adults with DSM 5 Level 1 and Level 2 autism spectrum disorder Caregivers of adults with autism via a monthly subscription Employers of adults with autism Monthly subscription fee (private pay) by caregivers Fun and simple-to-use skill-building curriculum built for adults with autism via a mobile app 1) Adults with Autism Spectrum Disorder (user) 2) Parents (payers) Increase self-sufficiency Reduce parent burnout
  5. 1 2 3 4 5 6 7 8 9 1 0 Our starting hypothesis was that skill-building is the major challenge for adults with autism facing “the cliff.” Skill-Building Curriculum MVP 1: Paper Prototype 4 5 6 7 8 9 1 0
  6. 1 2 3 4 5 6 7 8 9 1 0 We found that it’s not new skills, but turning new skills into HABITS. “Without reminders, I’ll forget to take a shower or set an alarm.” Adult with autism "I think habits make a bigger impact. It’s easy to learn skills but hard to integrate them into daily life.” Parent 4 5 6 7 8 9 1 0
  7. 1 2 3 4 5 6 7 8 9 1 0 Habit Formation Tool Skill-Building Curriculum Skill-building curriculum Would you like to match with a peer with similar goals? Yes No. I want to do it alone Great! You have set a reminder for: Wake up at 8 am everyday,, Monday, Tuesday, Wednesday, Thursday, Friday, Saturday, Sunday, Every day, 8 am MVP 2: PocketRobin Virtual Assistant for Reminders So we pivoted to become a virtual assistant to form healthy habits 4 5 6 7 8 9 1 0
  8. 1 2 3 4 5 6 7 8 9 1 0 Adults with autism wanted this virtual assistant, Parents wanted a resource-sharing platform. “I need a virtual assistant that gets me out of the house.” Adult with autism “I wish there was a single place I could go to have all my questions about autism answered.” Parent Resource Sharing Virtual Assistant 5 6 7 8 9 1 0
  9. 1 2 3 4 5 6 7 8 9 1 0 We tested a virtual assistant vs. a resource sharing app. Virtual Assistant tool 5 6 7 8 9 1 0 vs “Siri for Autism” Resource Sharing “Yelp for Autism” 6% conversion rate for BOTH! 213268 Landing page visits 5093 Comments, likes, and shares 1215 Form fills
  10. 1 2 3 4 5 6 7 8 9 1 0 Virtual Assistant vs “Siri for Autism” Resource Sharing “Yelp for Autism” The winner was... 5 6 7 8 9 1 0 Because VIRALITY is key to our Word of Mouth channel strategy!
  11. 1 2 3 4 5 6 7 8 9 1 0 And word of mouth was already working for us – we went viral in Colorado! 5 6 7 8 9 1 0
  12. 1 2 3 4 5 6 7 8 9 1 0 So we doubled down on virtual assistant… but how would we keep users engaged? 6 7 8 9 1 0 Engagement
  13. 1 2 3 4 5 6 7 8 9 1 0 We found social engagement was a huge motivator. I wish I could make friends and have friends to come over. Adult with ASD Friends, social activity and helping others motivates me. Adult with ASD 6 7 8 9 1 0
  14. 1 2 3 4 5 6 7 8 9 1 0 So we built our 4th MVP to be an accountability buddy app. 6 7 8 9 1 0
  15. 1 2 3 4 5 6 7 8 9 1 0 Hydrate more Ennio Study 30 min Dan Exercise Tameem Leave by 8:45 Nicholas Pray daily Brian Shave daily Nick Shower Patrick Make bed Katie “Want to continue for another week?” Users were more motivated with accountability buddies. 6 7 8 9 1 0
  16. 1 2 3 4 5 6 7 8 9 1 0 We thought we’d found product-market fit! Habit Formation Tool with accountability buddy system 6 7 8 9 1 0
  17. 1 2 3 4 5 6 7 8 9 1 0 Ok, customers like your product, but can you make money?? ...but the teaching team encouraged us to make sure we were on the right track... 7 8 9 1 0 Ok, customers like your product, but can you make money??
  18. 1 2 3 4 5 6 7 8 9 1 0 We asked our customers: “How much would you pay for our app?” How much would you pay for that mom? It’s your money, son, how much would you pay? Uhh... Uhh... Willingness to pay was… unclear. We needed to run more tests. 7 8 9 1 0
  19. 1 2 3 4 5 6 7 8 9 1 0 $9.99 / month 0.00% Conversion Rate .6% Conversion Rate (not statistically significant but still sad) We built a new pricing test, hoping for the same 6% conversion rate 7 8 9 1 0 Free
  20. 1 2 3 4 5 6 7 8 9 1 0 We reached out to all the people who were excited about our first landing page 8 9 1 0
  21. 1 2 3 4 5 6 7 8 9 1 0 Parents wanted peace of mind, and adults with autism wanted support to prevent meltdowns Adults with AutismParents 9 1 0 8 9 1 0 “peace of mind” “manage my fears” “I have coping skills but forget to use them and then have meltdowns.”
  22. 1 2 3 4 5 6 7 8 9 1 0 We redesigned our landing page with these value props and got 8% conversion for $9.99/month! MVP 6 9 1 0 8% conversion
  23. 1 2 3 4 5 6 7 8 9 1 0 MVP 7: Mitigating meltdowns through emotional regulation 1 0
  24. 1 2 3 4 5 6 7 8 9 1 0 Next, we explored revenue streams beyond private pay. “Anxiety attacks and meltdowns cost $20,000 per hospital stay per person.” “We invest in products that lead to higher employment rates for our clients.” 1 0
  25. 1 2 3 4 5 6 7 8 9 1 0 Institutional partners ARE willing to pay for PocketRobin. “I’ll give you $5,000 to run a 6-month pilot on 100 of our clients.” - Labor & Employment Specialist at the Colorado Regional Center 1 0
  26. 1 2 3 4 5 6 7 8 9 1 0 World-renowned autism self-advocate Temple Grandin is consulting with us. “You should find Key Opinion Leaders!” Emmy and Golden Globe Winner Time 100’s Most Influential People, National Women’s Hall of Fame inductee
  27. Continuing the business ? YES! We are all in :) Milestones: ● March 2019: Continuing testing assumptions around emotional support app ● April 2019: Apply for grant funding for initial development & launch website for early sign-ups ● May 2019: Build initial app with emotion trackers and anxiety reduction modules ● May 2019: Initial investor meetings with impact funds and foundations begin ● June 2019: Roadshow across the U.S. to share app and collect user feedback ● September 2019: Secure seed funding ● October 2019: Launch Version 2 Year - Round - Fundraise - Revenue Milestone ● 2019 Seed $1 million ● 2020 Series A $5 million $120K ● 2021 Series B $15 million $1.2M
  28. Acknowledgements Thank you so much to: Our designer, Sabrina Our mentor, Maria Popo The teaching team Shire House group home And all of the LLP students/teams!
  29. Total Addressable Market: $71.5B (5.5M US citizens w/ autism) * ($13,000 avg cost of disability support programs) Target Market: $15.7B 44% of high functioning autistic adults Served Available Market: $35.8B (50% of 5.5M paying for college-level support) * ($13,000 avg cost of disability support programs) 31 Y1-Y3 Revenue: $120, $1.2M, $12M Estimating $10/mo subscription fee * subscribed users (1000; 10,000; 100,000) Sources: US News Autism Housing Network Autism Speaks Market Size

Editor's Notes

  • Here is a short summary of our 10-week journey
  • Each of our lives have been touched by someone with a cognitive disability. This company is for my brother (schreiber). For my mother (saloner). For my friends (Emma). For my students (paulina). And for my brother (tiffany).
  • Here is our WHOLE team - including our designer Sabrina! And our mentor Maria!
    We started as : an app to help adults with autism develop confidence and independence
    120 interviews later w. adults with autism, caregivers, service providers, employers...we are PocketRobin! A virtual assistant for emotional regulation for adults with autism

    Suggested alternate wording for the last 2 sentences [Paulina]:
    After 120 interviews with adults with autism, their parents, service providers such as therapists, and industry insiders, we are…. PocketRobin! An emotional support virtual assistant for adults with autism
  • This is our original biz model canvas
    Mobile skill building curriculum that is: fun & simple to use built to increase self-sufficiency and reduce caregiver burnout.
    TWO core customer segments - the adult with ASD and their family - who are seen as the payer
    And, our revenues come from a monthly subscription fee


  • So our starting hypothesis was that skill-building is the major challenge to adults with autism facing “the cliff.”
    We built a paper prototype and got outside the building...
    Connected with a local group home for adults with autism called Shire house and began attending weekly game nights and connecting with other organizations across the country.



  • We heard from caregivers that HABITS make a bigger impact and the key is integrating new skills into daily like We heard from adults with autism who struggled to remember daily habits like showering and setting alarms
    BUT it turned out that The challenge for people was not about exposure to new skills as much as it was turning new skills into HABITS.


  • So we pivoted to become a virtual assistant to form healthy habits and built a new MVP: a chatbot for daily reminders.




    ADVICE: Focus on ONE skill Our main job to be done: Habit formation through Intelligent reminders
    And we built our 2nd MVP: a chatbot for daily reminders



  • Another voice was emerging at the same time. Parents were really frustrated by how difficult it is to find resources for autism. Our team was becoming divided about what to focus on...So we decided to do a value proposition showdown!
  • We launched a THREE DAY Facebook ad campaign, pitting the virtual assistant app against the resource-sharing app
    We got strong positive signals for both, with 6% of visitors leaving their contact info on each landing page! This was huge!
    [CLICK]
    But the BIG DIFFERENCE was that the virtual assistant app had stronger virality, with almost twice the number of comments, likes, and shares.



    --------
    Week 4:
    Hypothesis: We thought customers would favor a resource-sharing app over a virtual assistant app.
    MVP: Facebook ad campaign testing conversion rates for two different ideas
    Key insight: Conversion rates were strong for both products, but virtual assistant was more ‘viral’
    Bottom line: We decided to focus solely on the virtual assistant!


    Secondary insight:
    Channel insight: Word of mouth is powerful. This is stronger for virtual assistant MVP than resource sharing mvp.
    This week we affirmed our understanding that word of mouth is powerful, but not free. We added app store to our channels and considered how to add these channels in our financial models

    Virtualize and simplify the slide maybe

    Week 4:
    Hypothesis: We thought customers would favor a resource-sharing app over a virtual assistant app.
    MVP: Facebook ad campaign testing conversion rates for two different ideas
    Key insight: Conversion rates were strong for both products, but virtual assistant was more ‘viral’
    Bottom line: We decided to focus solely on the virtual assistant!

    Secondary insight:
    Channel insight: Word of mouth is powerful. This is stronger for virtual assistant MVP than resource sharing mvp.
    This week we affirmed our understanding that word of mouth is powerful, but not free. We added app store to our channels and considered how to add these channels in our financial models


    STATS:
    Virtual Assistant tool

    Number of people reached: 5,290
    Likes, shares & comments: 93
    Link clicks: 235

    Landing page stats
    Visits: 268
    Conversions: 15
    Conversion rate: 5.56%

    Resource Sharing: “Yelp/Nextdoor for Autism”

    Number of people reached: 3,999
    Likes, shares & comments: 50
    Link clicks: 209

    Landing page stats
    Visits: 213
    Conversions: 12
    Conversion rate: 5.63%


  • By popular demand, the winner was our virtual assistant!!
    [CLICK]
    Because virality is key to our word of mouth channel strategy. Even a competitor told us “We rely on word of mouth because this is such a strong community.”


  • And word of mouth was already working for us!

    Jonah Berger, an autism specialist in Colorado, actually printed out a flyer we posted online,
    [CLICK]
    He handed it out at his class for adults with autism.

    Word about PocketRobin spread...

    And suddenly people were reaching out and signing up for our Beta version.
  • So we doubled down on the Virtual Assistant!!
    BUT we saw users’ interaction with the chatbot decrease over time. Now, the bigger question was, how would we keep users engaged?


  • We reflected on what users said was motivating to them.
    [CLICK]
    We heard that making friends was a big challenge.
    [CLICK]
    And that social activity was motivating.
  • So we added an accountability feature into our habit forming app. For our 4th MVP, each of us was paired with an adult with autism.[CLICK] We set daily goals and motivated each other via text message and photos.
  • Users were more motivated with the social component. And after 1 week of testing we asked, [CLICK] hey want to continue for another week
    [CLICK] We heard - YES! almost everyone wanted to continue with PocketRobin.
  • We were excited to have found product market fit.
    [CLICK]
    And updated the canvas to include the accountability buddy system.
  • But the teaching team reminded us: You’re a for-profit, you have to make sure your customers will pay for this! Where’s the money!?
  • So we asked two of our customers, a mom and son, how much they would pay for our app.
    [CLICK]
    Neither was clear on who would pay, and we needed to test our pricing assumptions.
  • [CLICK]
    Our original landing page offered our product for free and had a 6% conversion rate.
    [CLICK]
    To see if customers would pay for an accountability buddy, we built a new MVP with pricing.
    [CLICK]
    Although this ad reached fewer people than our original test, the results were disappointing: we had a 0% conversion rate when we showed pricing!



    -------
    Compare to the free virtual assistant landing page with 5.56%, there is 0 conversion on the $9.99 accountability buddy landing page
    ADD QUOTE - parent said to pay, child said he will not pay
    … this is a massively negative signal
    we got sad and everyone freaked out. this was our moment of DOOM AND GLOOM. mixed signals from caregivers.
  • We like to call this the moment of doom. This was a rude awakening for our team. Yes, we’d found a product people liked using for free but they weren’t willing to pay. Sure, we screamed for a minute, but then brushed ourselves off and got started on deeper customer development.
  • Remember those customers who’d signed up for our virtual assistant? We reached out to ALL of them to find out what had drawn them to our product and why they signed up.
  • Through these interviews, we uncovered what “virtual assistant” meant to our customers and why they would pay.

    Caregivers wanted peace of mind & progress tracking. To them, that meant help for their child in managing fears and anxiety in real-time.

    Adults with autism told us: ““I have coping skills but forget to use them and then have meltdowns.” They wanted a virtual assistant to help with that.
    ---

    In interviews, we heard that people wanted peace of mind via a PORTABLE TOOLKIT for ANXIETY that identifies triggers, offers real-time self-calming support and intelligent emotional tracking to see progress over time.

    “People have coping skills but they forget to use them”
    “An app to increase self sufficiency & peace of mind”
    “I want a virtual assistant to help me manage my fears”


    Other possible language we can include:
    “Overcome a lifestyle of chronic worrying”
    “promote self-awareness with on-the-go calming tools”

    ----
    WEEKS 1-3
    STARTING HYPOTHESES:
    Out of three value props (peace of mind, daily progress tracking, smart scheduling), scheduling would be the most popular
    That customers would be willing to pay at least $4.99/month.
    TEST / GOOB:
    Created FB ads testing our 3 value propositions
    A/B tested landing pages with 2 pricing options: $4.99/month vs. $9.99/month.
    Interviews at Shire House, in Colorado(10 adults with autism, 16 caregivers, 9 service providers, 1 employers)
    Met with businesses with similar business models through the teaching team and our mentor (This is where insurance option comes from)

    WHAT YOU LEARNED:
    The $9.99/month price got even more traction than $4.99/month (learning: we can test higher prices)
    “Peace of Mind” and “daily tracking” were the top value props
    People want and will pay for a virtual assistant
    Received a statement of intent for a 6 month pilot at the Dept. of Vocational Rehab in Colorado ($5000 over 6 months)
    If we can prove reduced hospitalization/insurance costs, insurance companies may be willing to partner and pay
    WHAT YOU HEARD:
    Keep your landing page SIMPLE!
    Test WTP by showing the price + clicking “Sign me up!” button, then offer a free trial
    WHAT CHANGED AS A RESULT OF LEARNING:
    Our revenue streams expanded from pure private pay to working with state Depts of Vocational Rehab and exploring insurance options
  • After reframing our caregiver value prop with these new learnings, we went from a 0% conversion rate to an [CLICK] 8% conversion rate for a price of $9.99 a month, which was crazy, and we felt confident again that we were on the right path.


  • Our new MVP FIRST asks you to [CLICK] submit how you feel on a scale from 1-5 throughout the day, and when your [CLICK] emotions peak, we trigger customized coping mechanisms [CLICK] like soothing music or instructions to go to a quieter place. Over time, the app learn the user’s [CLICK] schedule, [CLICK] locations of high anxiety, and [CLICK] anxiety triggers, and [CLICK] pro-actively prevents meltdowns.

    =======
    Our next MVP was a dashboard [CLICK] of emotional support tools for adults with autism - it checks in with the user a few times a day as it learns the users [CLICK] schedule, [CLICK] location and [CLICK] anxiety triggers.
    Over time, it pro-actively prevents meltdowns by queuing custom coping strategies.
  • While discovering that there IS a private pay model for our product, we also explored TWO other revenue sources: [CLICK] Insurance companies interested in reducing anxiety-related hospitalization costs AND [CLICK] state governments as part of their autism service model.
  • IN FACT: the Colorado state government gave us a statement of intent to run a 6-month, $5000 pilot [CLICK] on 100 of their clients.
    At this point, we are confident that we’re on our way product-market fit for a potentially 80-million dollar annual revenue business at 30% market penetration.

  • [CLICK] In addition, in one of our office hours, Steve Blank told us to look for Key Opinion Leaders. [CLICK]

    As we were working on this final presentation, we got a call from Temple Grandin, [CLICK] who is quite literally the face of autism! She’s the most famous autism self-advocate in the world, with movies, [CLICK] books, [CLICK], and more [CLICK]. We’ll be consulting with her moving forward.
  • Our goal the whole time has been to help adults with autism navigate the world and be more confident and independent, and we’re thrilled where our project has landed us now. This is just the prologue to our adventure as a start-up, and as I know [CLICK] everyone is wondering if we are continuing.
    The answer is, [CLICK] YES WE ARE ALL IN! And we are so excited to [CLICK] continue exploring the autism space and developing PocketRobin.


  • Last but not least, we’d love to give a huge thank you to all of the people who have helped us along this journey. This entire process would’ve been impossible without you--thank you!
  • We started at the cliff.
    [Click]
    We felt great, building a skill building app
    [Click]
    Then our customer interviews sent us mixed signals, we were feeling confused and divided as a team.
    [Click]
    But we came together, really excited with a new idea for an accountability buddy app.
    [Click]
    That’s when the devastation hit. We got negative signals on our value prop and felt defeated.
    [Click]
    Nevertheless, we trudged on, meeting with advisors, mentors, and reforming our value prop.
    [Click]
    We started feeling positive again, and even more bonded as a team.
    [Click]
    Our customers were sending us positive signals too.
    [Click]
    And here we are today, excited to see where pocketrobin leads us next.
  • Economic Costs
    The cost of caring for Americans with autism had reached $268 billion in 2015 and would rise to $461 billion by 2025 in the absence of more-effective interventions and support across the life span.
    The majority of autism’s costs in the U.S. are for adult services – an estimated $175 to $196 billion a year, compared to $61 to $66 billion a year for children.
    On average, medical expenditures for children and adolescents with ASD were 4.1 to 6.2 times greater than for those without autism.
    Passage of the 2014 Achieving a Better Life Experience (ABLE) Act allows tax-preferred savings accounts for people with disabilities, including autism, to be established by states.
    Passage of autism insurance legislation in 48 states is providing access to medical treatment and therapies.
    More than half of young adults with autism remain unemployed and unenrolled in higher education in the two years after high school. This is a lower rate than that of young adults in other disability categories, including learning disabilities, intellectual disability or speech-language impairment
    31% of children with ASD have an intellectual disability (intelligence quotient [IQ] <70), 25% are in the borderline range (IQ 71–85), and 44% have IQ scores in the average to above average range (i.e., IQ >85).

    “The most recent attempt to account for actual special education expenditures ... found that average expenditures for a general education student that year was $6,556 compared to $12,474 for students with disabilities.”
    http://www.michiganradio.org/post/how-much-does-it-cost-educate-student-special-needs-nobody-knows
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