PrepEngineVaibhav      Rachana                Praneet              Ashray                     Customer Interviews         ...
Here is what we started withVocabulary building software for standardized tests withfeatures such as mnemonics, images, et...
Our E-245 Journey                                                Refining                               PrepEngine        ...
Canvas Progression
Vai Vocabulary Version 1                       “Mnemonics are definitely useful in remembering difficult words. Ability   ...
Refining the UI                       “Vocabulary affects only 150 marks out of possible 2400. To be much                 ...
In Search of Pivot                      “Most of the vocabulary learning takes place in the middle-school.                ...
PrepEngine - Motivation                      “ Ability to track progress on your vocabulary tool is great. What I’d       ...
Our Pivot - PrepEngineOne-stop shop for test preparation. Top-of-the line contentcoupled with features such as self-study ...
PrepEngine – Deep Dive                       “Our core competency is teaching if someone can handle all the               ...
Customer Segments                      “You do not seem to understand your customer segments very well. You               ...
Business Economics – Revenue Model                      “Per student charges do not make much sense since the tenure of a ...
Business Economics – CAC                      “There are very few industries where Inside sales is not effective. It isCus...
Partners                      “Our choice of which tutor to hire for our son was primarily based onCustomer Interviews    ...
Franchises                      “We have a custom-built CRM platform that we have developed over                      year...
VaiVocabulary CanvasKey Partners     Key Activities   Value Propositions      Customer Relationships   Customer Segments  ...
VaiVocabulary CanvasKey Partners     Key Activities   Value Propositions      Customer Relationships   Customer Segments  ...
VaiVocabulary CanvasKey Partners     Key Activities   Value Propositions      Customer Relationships   Customer Segments  ...
PrepEngine Canvas - OriginalKey Partners     Key Activities   Value Propositions      Customer Relationships   Customer Se...
PrepEngine CanvasKey Partners     Key Activities   Value Propositions               Customer Relationships   Customer Segm...
PrepEngine CanvasKey Partners     Key Activities   Value Propositions      Customer Relationships   Customer Segments     ...
PrepEngine CanvasKey Partners     Key Activities   Value Propositions      Customer Relationships   Customer Segments     ...
PrepEngine CanvasKey Partners     Key Activities   Value Propositions      Customer Relationships    Customer Segments    ...
PrepEngine CanvasKey Partners     Key Activities   Value Propositions      Customer Relationships   Customer Segments     ...
PrepEngine v2 CanvasKey Partners     Key Activities   Value Propositions      Customer Relationships   Customer Segments  ...
Other learnings from the Educational market           An analogy with the                            Supplemental         ...
Big Picture                                                        Global                US           $5 Bn Market        ...
PrepEngine             Thank you!      Teaching Team:        Our Mentors:      Prof. Steve Blank     Michael Borrus      J...
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Prep engine final 2013 stanford e245

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Prep engine final 2013 stanford e245

  1. PrepEngineVaibhav Rachana Praneet Ashray Customer Interviews This week – 8 Founder of InstaEdu Total – 103 COO of RevolutionPrep Next week – 7 ex-COO of Mathnasium
  2. Here is what we started withVocabulary building software for standardized tests withfeatures such as mnemonics, images, etymology, customizedrevision and progress tracking to learn vocabulary in anefficient way. Currently used by over 7000 customers!
  3. Our E-245 Journey Refining PrepEngine Refining the UI Customer Partners Motivation Segments In Search of PrepEngine Business TargetingVai Vocabulary Pivot? Deep Dive Economics Franchises
  4. Canvas Progression
  5. Vai Vocabulary Version 1 “Mnemonics are definitely useful in remembering difficult words. Ability to classify words based on difficulty can be a very helpful feature for revisiting the words in a short time.” – Lu , StudentCustomer Interviews “The integration of mnemonics and images would be useful to remember the words. However, book-like interface would be better instead of the student required to click for next word each time. Captions for images should be provided.” – Ingrid, Student • All customer feedback seems to be focused on user-interface. Lessons Learnt We would have to design a better user-interface for it to be appealing • The product might be useful in terms of its features
  6. Refining the UI “Vocabulary affects only 150 marks out of possible 2400. To be much more useful you have to concentrate on other areas of SAT as well”Customer Interviews – Ryan, Tutor “Aren’t you the team who ran out of colors for customer segments?” – Steve Teaching Team “The market size that you are dealing with here, might be very small” – Steve TAM SAM Market Research Target $44 Mn $31 Mn $13 Mn • Our current product has certain strengths in terms of its Lessons Learnt features. We need to leverage these strengths to pivot to a much larger market.
  7. In Search of Pivot “Most of the vocabulary learning takes place in the middle-school. So, integrating it into school life, possibly from KG might be useful.Customer Interviews Language acquisition is also a possible extension of your idea” – Dennis, Teacher “You should have a product in mind. Do not use customer discovery to Teaching Team come up with your product. ” – Ann • Explored competitive landscape to find compatible entry points in the EdTech market. Market Research • Explored websites in the language learning domain to find out if vocabulary can be supplemental to those sites or vocabulary itself can be used for language learning • Customer interviews should be primarily used to Lessons Learnt validate/invalidate hypothesis and not to define a product
  8. PrepEngine - Motivation “ Ability to track progress on your vocabulary tool is great. What I’d want is to be able to track the progress of all our students similarly, not just vocabulary but everything else.” – Taylor, Program Coordinator, Tutoring InstituteCustomer Interviews “We spend about 15 mins with the student trying to teach them vocabulary each week and then the student is supposed to spend 2 to 3 hrs by themselves. For everything else we teach for an hour and the student spends around 4 hrs.” – Eric, Founder, Tutoring Institute Explored different companies catering to the supplemental education market, explored the landscape for products related to our idea Market Research including content providers, data analytic apps, and other tools targeted at high schools. • The private tutoring industry is large, fragmented with only a few startups trying to serve their needs. Lessons Learnt • There is a need for a solution to help the tutor with tracking the student during the self study time
  9. Our Pivot - PrepEngineOne-stop shop for test preparation. Top-of-the line contentcoupled with features such as self-study tracking, dataanalytics and content management that facilitatesteaching, learning and seamless communication.
  10. PrepEngine – Deep Dive “Our core competency is teaching if someone can handle all the technology for us, we would be very interested.” – David, Director, Tutoring Institute “We use multiple legacy systems to manage our students and tutors. WeCustomer Interviews use Google calendar to keep track of calendars, Minute 7 to keep track of tutor time entry and billing, Solve360 for tutors to enter their session notes and manually enter student progress and Socrato for student score data analytics.” – Aaron, Founder, Tutoring Institute • Validated the need for data analytics for student progress tracking • A bigger customer pain point is the lack of an integrated CRM Lessons Learnt solution to handle various tutor/student management tasks • Content is not the primary value proposition, and only with official content will it be something on the top of the customers mind.
  11. Customer Segments “You do not seem to understand your customer segments very well. You should not look at the tutoring market as a whole. You need to work on Teaching Team your product-market fit.” – Steve Based on our interviews, we realized that the needs of the tutoringCustomer Interviews institute differ based on the number of students they cater to. Estimated number and size of tutoring institutes across US using Yelp Market Research and other tutor-student connecting platforms (Wyzant, Tutorspree) • Our customers can be classified into 3 segments 1. 50 Franchises (average number of students : 5000) 2. 3000 Mid-size Tutoring Institutes (average number of Lessons Learnt students : 200) 3. 100,000 Individual Tutors (average number of students : 5) • Value proposition & Revenue model varies for each segment
  12. Business Economics – Revenue Model “Per student charges do not make much sense since the tenure of a student is widely variable. We would be willing to pay $3-5 per test report” – Aaron, Founder, Tutoring InstituteCustomer Interviews “Per report model discourages me from getting more reports. I would be willing to pay $20/student” - Anthony, Individual tutor “A variable subscription fee, based on range of students is a much more simpler way to charge us” - Mark, Founder, Tutoring Institute • Pricing numbers are in the correct range for mid-size tutoring institutes and individual tutors. Lessons Learnt • The revenue model needs to cater separately to each customer segment
  13. Business Economics – CAC “There are very few industries where Inside sales is not effective. It isCustomer Interviews much more cost effective to use inside sales” - COO of Sales as a Service Company Calculated the sales cost for Direct, Inside and online (LinkedIn and Market Research Google AdWords) sales for different customer segments taking into account the complete CTC of sales team and conversion rates. Teaching Team “Direct and inside sales together is a rare combination in a startup” – Ann Certain customer acquisition techniques work for certain customer segments Lessons Learnt • Franchises: Direct Sales • Mid-Range: Inside Sales • Individual tutors: Online Advertising Mid-range tutoring institute will be our initial focus followed later by Franchises and Individual Tutors
  14. Partners “Our choice of which tutor to hire for our son was primarily based onCustomer Interviews what his counselor suggested” - Jon, Parent • “Inventory Management Startup Stitch Labs Integrates With Quickbooks Killer Xero To Simplify Accounting” - www.techcrunch.com Market Research • Tutoring associations have partnered with companies providing technical services to tutors / tutoring institutes - Nation Tutoring Association • Counselors can be gateways to tutors and mid-size tutoring institutes • Tutoring Associations can certify our products providing credibility to the tutors Lessons Learnt • Strategic Alliance with new company like Xero can help to make complete product offering to customers • Partnership with content suppliers can be useful to provide content to the individual tutors
  15. Franchises “We have a custom-built CRM platform that we have developed over years using Salesforce as the backend. The only motivation for us to shift to your system would be an appealing pricing structure.” - Whitney, Former COO, FranchiseCustomer Interviews We have invested considerable engineering resources to develop our platform. However, I strongly feel that there is a need for such a solution in the existing market. Another big franchise approached us for licensing our CRM Platform. - Claire, COO, Franchise A big thank you to Michael Borrus and Jim Greer for using their LinkedIn Mentor Help contacts to connect us with key decision makers from this segment. We have an interview with CTO of PrepMe • It’s a much harder task to reach out to key decision makers from Big Franchises Lessons Learnt • Use Stanford Alums in these Franchises and Network Solutions tool to get the key contacts in these companies • Franchises may also need our product, but this segment needs further verification. We have 3 interviews scheduled this week
  16. VaiVocabulary CanvasKey Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources ChannelsCost Structure Revenue Streams
  17. VaiVocabulary CanvasKey Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources ChannelsCost Structure Revenue Streams
  18. VaiVocabulary CanvasKey Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources ChannelsCost Structure Revenue Streams
  19. PrepEngine Canvas - OriginalKey Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources ChannelsCost Structure Revenue Streams
  20. PrepEngine CanvasKey Partners Key Activities Value Propositions Customer Relationships Customer Segments Prep material, quizzes , tests Add/modify content Student under Key Resources surveillance ChannelsCost Structure Revenue Streams
  21. PrepEngine CanvasKey Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources ChannelsCost Structure Revenue Streams
  22. PrepEngine CanvasKey Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources ChannelsCost Structure Revenue Streams
  23. PrepEngine CanvasKey Partners Key Activities Value Propositions Customer Relationships Customer Segments & Google Key Resources ChannelsCost Structure Revenue Streams
  24. PrepEngine CanvasKey Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources ChannelsCost Structure Revenue Streams
  25. PrepEngine v2 CanvasKey Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources ChannelsCost Structure Revenue Streams
  26. Other learnings from the Educational market An analogy with the Supplemental Healthcare market Educational Market (Platform / content / analytics technology) Physician: Teacher/Tutor For schools For private tutoringPatient: Insurance Company: • Large number of • Not too manyStudent Parent players in the people are market targeting this segment • Referrals extremely important
  27. Big Picture Global US $5 Bn Market $54 Bn Market $33 Mn Revenue ~$330 Mn RevenueTop Countries: Brazil, China, France, Germany, India, Japan, Russia, UK, USDespite the differences in tutoring markets across countries, our product is scalable witha few modifications
  28. PrepEngine Thank you! Teaching Team: Our Mentors: Prof. Steve Blank Michael Borrus Jon Feiber Jim Greer Ann Muira-Ko Rick Barber Stephanie Glass We will miss E245!

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