Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Takecare Engr245 2021 Lean Launchpad

business model, business model canvas, mission model, mission model canvas, customer development, lean launchpad, lean startup, stanford, startup, steve blank, entrepreneurship, I-Corps, Stanford

  • Be the first to comment

  • Be the first to like this

Takecare Engr245 2021 Lean Launchpad

  1. TAKE CARE Platform for scheduling on demand at-home senior care Interview Completion: 100 total
  2. Carefully crafted team with collaboration across several schools and domains: business; engineering; medicine; education Our team Caroline Pringle Picker MBA & MA in Education BA Global Affairs Caroline Gray Hustler MBA & MA in Education BA Economics Emilia Ling Hustler MD/MBA Candidate MSc Epidemiology BSc Biotech Carol Schrader Mentor Shreya Shubhangi Hacker BA in Computer Science
  3. The genesis of Take Care PERSONAL PASSION SOCIETAL NEED TAKE CARE -A solution for families, like ours, in need of quality care -Gainful employment for caregivers ● Each member of our team has personal experience with the challenges of finding care for elderly loved ones ● As women in business, we recognize the cost that caregiving can have on female professional advancement ● At-home caregiving is one of the largest labor gaps in the United States--caregivers are underpaid and under- appreciated ● 10,000 Americans turn 65 every day and 90%+ prefer to age at home ● COVID revealed the risks of residential care facilities, increasing demand for at-home options
  4. What is at- home senior care? Non-medical Instrumental activities of daily living: cleaning, driving, companionship Medical Medically necessary interventions: G-tube feeding, IV flushing, wound care Activities of daily living: bathing, toileting, assists in and out of bed Take Care’s target offering
  5. Day 1 Platform for families finding and managing at-home senior care Distinguishing features: ● End-to-end platform to find, monitor, and pay long term caregivers ● Tech-first vs. legacy in-person agencies ● Payment integration ● Daily care management ● Rigorous caregiver training
  6. Distinguishing features: ● End-to-end platform to find, monitor, and pay long term caregivers ● Tech-first vs. legacy in-person agencies ● Payment integration ● Daily care management ● Rigorous caregiver training Day 1 Platform for finding and managing at-home senior care Distinguishing features: ● Offer critical same-day shifts to backfill for cancellations and respite care ● Higher wages for caregivers ● Hyper-local: building trust through community recommendations ● Non-medical focus: assist customers with daily living activities B2C platform for scheduling on- demand at-home senior care Today
  7. Week 1: Business model canvas Key Partners Home care aids and agencies Hospitals and acute care facilities (to gain referrals) Insurance providers (to integrate payments) Corporate partners (for care-as-a- benefit offering) Key activities Enable a marketplace that engages carers and families Provide training to carers Facilitate payments Value proposition Problems: At-home care is hard to find, navigate and manage. Families have anxiety and distrust in care quality. Carers lack training and reliable pipeline of clients Solution: Fast, affordable quality at-home care. Single-point solution for finding and scheduling trusted carers with an integrated management and payment system. Carers will have access to training and certification Customer relationships Trust-based relationships built on carer ratings and reviews Customer segments Families looking for reliable care for their loved ones and a way to oversee care Carers who are looking for training opportunities and steady employment Potentially agencies who are looking for add’l avenues to reach clients or software to support operations Key resources Home care aids (potentially agencies) Families/individuals Software, predictive analytics, training content Channels B2C app and website (families/ individuals use app directly) B2B2C elder care- as-a-benefit Cost structure Labor costs (payment to carers & Take Care employees) Marketing costs Development and maintenance of tech platform Revenue streams % of payment for care services + subscription fee for care management platform Potential revenue stream from home care agencies Advertising of eldercare products/services on platform
  8. Key Partners Home care agencies Community colleges, unemployment offices, job sites for recruiting caregivers to the platform NextDoor Key activities Enable a hyper-local marketplace that engages carers and families Match expert carers and families for reliable last- minute care Value proposition For Families / Agencies: Fill-in schedule gaps caused by caregiver cancellations For Families: Continuity of care (protect patient health) For Agencies: Customer satisfaction, retention (for agency) For Caregivers: ~50% higher wages for same-day shifts - Flexibility in scheduling - Additional shifts/wages Customer relationships Trust-based relationships built on community circles of trust, carer ratings and references, video interviews Customer segments Families looking for trustworthy, fast care for their loved ones and a way to oversee care; frustrated by last- minute cancellations Carers who are looking for higher wages than those offered by agencies (more tech savvy than typical caregiver) Key resources Gig-economy home care aids Community circles of trust built off existing networks (facebook) and new connections (geo, opt-in) Channels B2C: families find caregivers directly B2B: Agencies pay to fill staffing gaps Cost structure Labor costs (payment to carers & Take Care employees) Marketing costs Development and maintenance of tech platform Revenue streams % of payment for care services + subscription fee for care management platform Advertising of eldercare products/services on platform Today: Business model canvas
  9. What we learned along our journey
  10. Who we spoke to and why? Type Hypotheses tested Families ● There is demand and willingness-to-pay for qualified on-demand caregiving ● With the right features, families would trust an tech-enabled service Caregivers ● Caregivers would be eager to join a platform like Take Care Home Care Agencies ● Staffing is a major issue for HCAs and they would be willing to pay to resolve Accountable Care Organizations ● ACOs are interested in adding non-medical home care services to a value- based care bundle Chief HR Officers ● CHROs would be interested in an elder care-as-a-benefit offering Lawyers ● Caregivers can be hired as contractors VCs ● Tech-enabled senior care is a venture-backable business Following pages will show what we learned from these conversations
  11. Market is split between formal and informal market. Both face similar challenges with recruitment, training, insurance. Week 1-2: Customers are dissatisfied by incumbents What We Expected What We Found Agencies will pay to train their workforce Agencies are low margin, and can’t afford to spend on must- haves (compliance, recruiting) Care-as-a-benefit could accelerate demand-side of market Last minute cancellation is the “achilles heel” of the industry Week 1 Week 2 Week 4 Week 5 Home care industry is dominated by home care agencies and Care.com “I want the ease and convenience of a Care.com but the liability protection and concierge lifestyles services as something else” -Family seeking care Week 1 & 2 pivots: ● Formal vs. informal market ● Caregiver recruitment vs. training
  12. Trust and word of mouth drive discovery, but forum engagement would be low Week 3-5: Last-minute cancellation is the biggest pain point What We Expected What We Found Care-as-a-benefit could accelerate demand-side of market “Last minute cancellation is the ‘achilles heel’ of the industry”-SME Payors could include employees or health insurers Week 1 Week 2 Week 3 Week 4 Week 5 Caregivers and families are struggling to find each other On demand and scheduled service are equally appealing Week 3 - 5 pivots/learnings ● Cash is King Trust is King ● B2C → B2B2C ● Scheduled → same-day care
  13. ● Hyperlocal helps foster customer trust - but must balance with scale required (need to create enough supply for each local market) ● Dynamics and personas can vary dramatically across markets (e.g. ethnicity, age, and value prop!) In order to generate marketplace liquidity, we need to focus initially on local market and on-demand care Hyperlocalization Type of Care Channels ● Follow the money! ● Ironically, home care is too expensive for families but poorly compensated for caregivers ● There is little cost to save, so must charge more (and have the “right” to) → on demand is a big enough pain point to warrant higher wage ● Heavily debated which type of care to provide: medical / non-medical / high-touch / companionship - each with own challenges ● With a hyperlocal market, need as much supply and demand as possible → landed on non-medical care
  14. On-demand ads produced .6 percentage points more clicks than other experiments, ~.4 percentage points more than industry average ● Most successful test was quantitative and well-defined ● Relied on benchmarks to determine success (>1-2% CTR) ● As we look forward, critical to track data and metrics early to show traction and proof of concept for fundraising
  15. Week 6-8: B2C and B2B are the most promising channels What We Expected What We Found Care-as-a-benefit could accelerate demand-side of market Last minute cancellation is the “achilles heel” of the industry Payors could include employees or health insurers Week 6 - 8 Week 9 B2B2C: Employee care-as-a-benefit and insurance payors are promising customers Employee benefits are focused on childcare and fertility. Home care agencies struggle to fill gaps, leading to customer churn “[S]ales cycles are long and hard. If you want you could start talking to brokers now--it’ll be a 2 to 3 year conversation” -Chief HR Officer “Let me know when the company is up and running. This type of last-minute staffing solution is exactly what we need” -Home Care Agency Owner Week 6 - 8 pivots B2C → B2B2C → B2C & B2B (selling to home care agencies)
  16. Double-sided marketplaces are incredibly difficult - you have multiple customers (and potentially channels too) plus you need to be differentiated and valuable to all of them ● Had to hone-in on each customer, ensure we were providing a valuable, differentiated service to both sides ● Follow the money! ○ Training, while a big pain point, did not have enough ability to pay (not B2B - low margin agencies, nor B2C - caregivers can’t afford!) ● Ironically, home care is too expensive for families but poorly compensated for caregivers ● There is little cost to save, so must charge more (and have “right” to) → on demand is big enough pain point to warrant higher wage
  17. ● How to phase channel: eventually, we plan to sell to both families and agencies, but we recognize that we can’t do it all at once (we plan to start with agencies and ultimately sell to consumers) ● Scale: Hyperlocality addresses trust, but how to scale an on demand service? ● Recurring revenue: What makes a customer a one-time user vs. a regular user? ● W2 vs. full-time employment: How do we ensure a secure pool of caregivers at all times? ● Two sided marketplace: ○ How much $$$ will it take to find suitable caregivers? ○ How can we encourage HCAs to use our app? Looking ahead: We are figuring out how to scale a localized marketplace Questions left to answer: Week 9 Week 10 Beyond
  18. We’ve achieved several exciting milestones ★ Strong demand from both customer segments: Multiple HCA’s interested in product. Families stating they’d pay double for service. ★ Caregivers are lining up: 25+ caregivers have signed up for Take Care -- we are continuing to build out profiles with them ★ High conversion rates: Facebook CTR of 2.4% for on-demand ★ Successful first users of “MVP service”: connected a caregiver with two families looking for immediate care.
  19. Shreya Shubhangi We believe there is a bright future ahead for Take Care! Caroline Pringle Caroline Gray Emilia Ling Full team continuing on in the Fall Next Steps ● The team will continue incubating Take Care and hit the ground running in Fall 2021 ● This summer, we are each pursuing internships in adjacent industries and potential customers ● Early conversations and research on accelerators and VCs focused on longevity (e.g. techstars)
  20. Appendix
  21. Thank you! Our progress this quarter would not have been possible without the help of... ● The LLP Professors and TA team ● Our Faculty Advisor, Jennifer Carolan ● Our Mentor, Carol Schrader ● Our legal counsel, Michel Levin ● Our wonderful classmates!
  22. For families with elderly loved ones who need help finding backup home care on-demand. Take Care is a mobile app that allows you to search, manage, and pay for senior care. Our NPS score is 2x that of competitors because we facilitate trust through hyperlocal referrals, provide rapid onboarding, and offer concierge services for premium members Current status
  23. ★ Strong demand from both customer segments: HCA owner wants to rip this out of our hands; family member said he’d pay double ★ Caregivers are lining up: 23 caregivers have signed up for Take Care--we are starting to build out profiles for them ★ High conversion rates: Facebook CTR of 2.4% for on-demand ★ Successful first users of “MVP service”: connected a caregiver with two families looking for immediate care. Exciting Initial Traction
  24. Our journey so far WHAT WERE WE LAST WEEK WHAT ARE WE THIS WEEK KEY ACTIVITY Marketplace for vetted on-demand backup care for seniors Marketplace for vetted on-demand backup care for seniors CUSTOMER SEGMENT B2C: Customer is family member finding care for older loved one B2B: Agencies pay us to fill staffing gaps B2B2C: Care-as-a-benefit through employer B2C: Customer is family member finding care for older loved one B2B: Agencies pay us to fill staffing gaps ADDRESSABLE MARKET Families with elderly-loved ones in select states Families with working spouse/child who cannot afford to have cancellations (States: WA/FL/TX)
  25. Key Partners Home care agencies Community colleges, unemployment offices, job sites for recruiting caregivers to the platform Key activities Enable a marketplace that engages carers and families Match expert carers and families for reliable last- minute care Value proposition For Families / Agencies: Fill-in schedule gaps caused by caregiver cancellations For Families: Continuity of care (protect patient health) For Agencies: Customer satisfaction, retention (for agency) For Caregivers: ~50% higher wages for same-day shifts - Flexibility in scheduling - Additional shifts/wages Customer relationships Trust-based relationships built on community circles of trust, carer ratings and references, video interviews Customer segments Families looking for trustworthy, fast care for their loved ones and a way to oversee care; frustrated by last- minute cancellations Carers who are looking for higher wages than those offered by agencies (more tech savvy than typical caregiver) Key resources Gig-economy home care aids Community circles of trust built off existing networks (facebook) and new connections (geo, opt-in) Channels B2C: families find caregivers directly B2B: Agencies pay to fill staffing gaps Cost structure Labor costs (payment to carers & Take Care employees) Marketing costs Development and maintenance of tech platform Revenue streams % of payment for care services + subscription fee for care management platform Advertising of eldercare products/services on platform Business model canvas
  26. ● Customers churn from agencies when the agency fails to provide consistent service ○ Reduce customer churn and improve satisfaction by filling scheduling gaps caused by cancellations ● Increase caregiver satisfaction & loyalty to agency by paying higher wages for last-minute shifts ● Reduce overhead cost required to source and manage big network of last-minute caregivers Each channel has distinct value prop. B2C: Families find caregivers directly B2B: Agencies fill their staffing gaps Higher Wages (~25-50% more than avg shift) Flexible Work / Ability to Pick Up Additional Shifts “Demand Side” “Supply Side” ● Fill-in critical scheduling gaps caused by caregiver cancellations ○ Continuity of care ○ Care coordinator can continue their life (jobs, kids) ● Improve care quality and experience for both patient & care coordinator (often child / spouse) ○ Trained, experienced caregivers vetted with background checks, references, and ratings ○ App-based experience with more visibility into care provided (pictures and chats)
  27. Who we talked to: 3 VCs, 3 caregivers, 2 families, 2 SMEs What we expected: - A B2B2C care-as-a-benefit offering could provide a promising revenue stream -On-demand caregivers are likely younger (e.g., part-time college students) or middle-aged (e.g., stay-at-home moms wanting to pick-up part-time work) What we learned: - The market isn’t primed for eldercare-as-a- benefit -Older caregivers, and those working with agencies prefer stable shifts and consistent clients Interview Insights Quotes Care-as-a-benefit: “I would prioritize that channel for now. The sales cycles are long and hard. If you want you could start talking to brokers now--it’ll be a 2 to 3 year conversation” Caregiver profile: “Since I have other responsibilities at home, short-notice shifts don’t work as well for me. I’m sure there are some caregivers would like it but I prefer consistent clients” -Middle- aged full-time caregiver working with an agency
  28. Potential partners XXX Why do we need them? Sourcing families (and caregivers) - customer acquisition Sourcing certified, trained caregivers (trusted / vetted) Why might they need us? Already many chats / interest in using app to find caregiving → keep customers engaged Part of their value prop is ability to get jobs for their students post-grad Risks They’re more important to us than them - deprioritized R&D / attention Overqualified for non-medical care Costs We would drive the R&D vision & expense Some CNA schools require per-recruit commission
  29. Potential partners Take Care
  30. Drivers/assumptions of your business over the next 3 years ● Customer: ○ Customer acquisition cost ($175) ○ Share of rev. from B2B(~55%) ○ Churn Rate (50%, expect 12 mo. of care needed on avg.) ● Caregivers & service ○ Caregiver acquisition cost ($250) ○ Caregiver churn rate (30%) ○ Hours filled by TC (65%-90%) ○ Take rate (33%) ○ Hourly rate ($45) ● Sales and Marketing ○ Marketing cost for families + agencies ($26K in yr 1) ● Expenses ○ Caregiver wage (70% of gross rev.) ○ Engineering spend (<$200K in yr 1) ○ Legal spend + background checks (<$300K in yr 1)
  31. Caregiver profiles & ratings Q1 Q2 Q3 Q4 2021 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Cash reserves 5M 10M 20M 30M Seed $2M Series A $15M Series B $30M Operations Software development LLP Launch 1 town AI matching algorithm MVP tests Launch across few counties Replicate & Scale across multiple states / region Launch state-wide Booking engine Insurance / W2 Integration 3P Integrations (Nextdoor) Three year operating plan Nationwide expansion Partnerships (NextDoor) Expand channel (B2B2C) 33 Months Time to Profitability:
  32. MVP: Building real caregiver profiles ● Currently working with a handful of caregivers to build out profiles on our MVP website ● Video interviews with caregivers ● References from previous clients / CNA schools ● Location, expertise, certifications Current Focus
  33. Ask caregivers if we can interview them and advertise their profiles Caregivers are eager to have their profiles shared by Take Care for last-minute shifts Test 008: Caregiver conversion Test Card HYPOTHESIS OUR TEST METRIC WE’RE RIGHT IF % of caregivers who agree to have profiles built >50% of caregivers agree to have their profiles posted RESULT TBD NOW WHAT TBD
  34. Test these hypotheses: ● Caregivers who have signed up are willing to build profiles and start connecting with families ● Caregivers are willing to drive/commute 30 minutes to their shift Update our MVP: ● Interview caregivers and develop real profiles for website Other Areas of Focus: ● Drill down on unit economics and financial viability of tech-enabled service businesses ● Explore B2C channel through conversations with agencies ● Develop better understanding of technology behind other flexible staffing companies (e.g., IntelyCare) Next steps: Before next class, we will...
  35. Past slides
  36. Our Initial Test Results
  37. Our Initial Test Results
  38. Key activities ● Online ad spend to drive customers (caregivers first, then families) to website ● Offline spend - community colleges recruiting, local unemployment centers Compliance Partnership Development Fundraising ● Identify sources of funding and programs (debt and equity both an option) ● Complete applications and manage interview processes ● Labor specialists and home health care advising Customer Acquisition Product development ● Website ● Matching algorithm, ratings and reviews ● CNA schools / community colleges - incentivized to get their applicants hired ● NannyPay / other similar W2 services ● NextDoor / other local networks
  39. Key resources & partners Human Software ● Web front end ● App development ● Matching algorithm ● Ratings and reviews ● Integrations into other apps (e.g. NextDoor) Brand ● Brand/trademark/logo (trademark, copyright) ● Reputation and customer trust - strong press, reviews, ratings Partners ● CNA schools / community colleges - incentivized to get their applicants hired ● NannyPay / other similar W2 services ● NextDoor / other local networks ● Sales and marketing - with expertise in digital acquisition and marketplaces ● Customer experience / success team ● Customer support (for families and caregivers) ● Web and app engineers ● Compliance and legal (outsourced at first)
  40. SUPPLY-SIDE FUNNEL AND KPIs 40 CAREGIVER SIGNUPS ACTIVATION & PERFORMANCE ONBOARDING RETENTION Sample Supply-Side KPIs • Weekly sign-ups • Sign-ups per $ of marketing • Weekly activations/first visit • Hours of care given • Visits per hour/week/month • Churn • Caregiver lifetime value/caregiver acquisition cost • Referral rates • Sign-up to onboarding conversion rate • Utilization rate • Failure to fill shift rate • Cancellation rate • Rating & complaints
  41. DEMAND-SIDE FUNNEL AND KPIs 41 DOWNLOADS FIRST VISIT SIGNUPS ADDITIONAL VISITS & RETENTION Sample Demand-Side KPIs • Downloads per day/week/month • Downloads per $ of marketing • Passive to active sign- up ratio • First visits per week/month • Gross bookings • Churn • Customer lifetime value/CAC • Cancellation rates • Referral rates • Download to signup conversion rate • Sign-ups per $ of marketing • Number of rides by cohort (e.g., # of rides for riders who signed up 1 week ago, vs. 2 weeks ago, etc.) • First visits per $ of marketing
  42. Financial metrics B2B will help kick start market so can focus more on supply side than recruiting both sides at once Take Rate will be key test we need to run for LTV/CAC - how much will agencies / families share with Take Care for this service Hourly rate needs to be at least 50% higher than avg to support additional wages and fees Recruiting costs, while high, will be lower on aggregate than industry b/c we have higher wages and lower turnover Do not believe this will require an enormous engineering effort - CAC will be largest spend bucket Families will naturally churn as no longer need care, but expect 12 months of caregiving
  43. For families with elderly loved ones who need help finding backup home care on-demand. Take Care is a mobile app that allows you to search, manage, and pay for senior care. Our NPS score is 2x that of competitors because we facilitate trust through hyperlocal referrals, provide rapid onboarding, and offer concierge services for premium members Current status
  44. We are testing demand for consistent care and backup care Test: Customer demand for consistent care Customer demand for on- demand/backup care Caregiver demand for flexible shifts Result (CTR): 1.82% [$0.60 CPC] 2,194 Impressions 2.42% [$0.44 CPC] 1,197 Impressions 0.88% [$0.59 CPC] 2,384 Impressions
  45. Payment flows diagram (B2C) Take Care Keeps $8.6 / Hour $45 / Hour of On- Demand Care 5 hours / mo $650 1-Yr LTV Take Care
  46. Payment flows diagram (B2B) $45 / Hour of On- Demand Care Take Care 11% of Agency Total Shifts ~1,500/quarter Agency Take Care Keeps $8.6 / Hour
  47. Three-year income statement
  48. Create job ad on FB/Nextdoor/ Craigslist/distribute via text for caregivers that links to typeform Caregivers who are in-between jobs or do not want full-time work value on-demand shift work Test 006: Caregiver personas Test Card HYPOTHESIS OUR TEST METRIC WE’RE RIGHT IF % breakdown across different personas (e.g., working student, retired RN); expectations around wage High interest from non-full time caregivers; expect 20% increase in wage RESULT TBD NOW WHAT TBD
  49. Test these hypotheses: ● Profile of on-demand caregiver is different from that of consistent caregivers; pay expectations may also differ ● On-demand care challenges can be addressed with app-based features Update our MVP: ● Develop caregiver-facing typeform to understand wage expectations and personas for on-demand care Other Areas of Focus: ● Explore B2C channel through conversations with agencies ● Understand MVPs of other service marketplaces (e.g., Rover, Poppy) ● Research specific local markets for best launch (early hypotheses: WA, FL, TX) ● Carelinx business model and track record to date Next steps: Before next class, we will...
  50. ● Sign. more expensive than informal market (~+50%) ● Customer has little / no say on interviewing & vetting caregivers (take what you get) ● Large (~11%) no-show rate ● Highly manual today: many phone calls, no app to manage or coordinate ● Relatively low quality service & care ● Customers continue to use because coordination is difficult; “agency is responsible for filling the no-show slot” ● Estimated 60% of the market The Market today has severe gaps... Word of Mouth ● Very rare to have a reference that is local, trusted, and available to start working ● Once you have a great caregiver you don’t give them up ● Leads to hard work finding caregivers on local Facebook groups ● Time consuming, hard to vet, & back to the drawing board when one quits / no-shows ● Estimated ~30% of the market Care.com Agencies ● Untrustworthy & frustrating ● Poor customer service ● Many unverified accounts ● Reputationally poor (major PR issue in 2019 with uncertified caregivers) ● High no-show rates ● Customers pay for the Care.com subscription, but no support for scheduling, coordinating, paying, etc. ● Waste time & $$ on unverified and unvetted caregivers ● Estimated ~10% of the market
  51. Care.com fails its customers on many vectors: Customer / Caregiver Reviews Brand & Reputation Google Trends (9/2013 - today): interest is down 75% Care.com has a low NPS and customers needs are not met: matching, support fall short of expectations Care.com brand has taken a major hit: customers do not trust the company
  52. Last minute cancellation is the “achilles heel” of the industry My grandpa’s care aid keeps cancelling at the last minute. How often does this happen to others? What do you do when it happens? -Question posed to caregiver support group on Facebook “We had tons of problems with aides calling in sick / hungover / car trouble. It happened once a week and they were completely unapologetic about it”
  53. MVP-Caregiver marketplace
  54. B2C - Direct to Consumer App Hypothesis: Consumers are used to searching for their own caregivers as this is the typical route for the informal market today Challenges: Paying for home care is expensive for consumers. For our business model, marketing costs may be too high to support a double-sided marketplace in this low-margin industry. (Must recruit caregivers and market to families = $$$) B2B2C:CHROs Hypothesis: Chief HR officers (CHROs) are desperate to solve the issues facing women / minorities that are causing higher attrition & improve emotional wellbeing of employees (care for families - children and elderly parents is a critical painpoint) Challenges: How much willingness-to-pay from corporations and how big of market is that? Does adding another channel/customer into an already complex 2-sided marketplace overcomplicate our business model? B2B2C:ACOs Hypothesis: Value-based care will incentivize low-cost non-medical home care services Challenges: Will low-cost home care services cut too deep into narrow profit margins of accountable care organizations (ACOs)? Is there an opportunity to expand as more Direct Contracting Entities (DCEs) emerge? Channels
  55. Demographic: Upper-middle class Sex: Male; Age: 60+ Profession: Early Retirement Need: Diagnosed with ALS 3 months ago, requires immediate care-plan with progressively more (24/7) in-home medical care Persona debut: The Family The Buyer: Kathy The Patient: Gerald Our Value Proposition to Families: Discovering and hiring consistent caregivers. Providing immediate matches for last-minute care to prevent critical gaps in scheduling. Current Workflow: Speak to 10+ friends and neighbors asking for personal references; fill scheduling gaps with family or make personal sacrifices when care falls through Demographic: Upper-middle class Sex: Female; Age: 55 Profession: Full-time professional and high-school aged children Need: Kathy wants quality care for Gerald but she is juggling work and family. She needs caregivers she can trust and scheduling that doesn’t fail
  56. Persona debut: The Caregiver Sex: Female Age: Bimodal, mid 20s, 45-60 Race: 50% white, 50% minority Education: Low education or currently in school Personality: Carer, aspirations for a professional healthcare career (nurse)
  57. Competitive landscape TAKE CARE Traditional care agencies & nursing homes
  58. Market size Total Addressable Market: $643B $173B paid US homecare market + $470B unpaid caregiving Served Available Market: $173B Annual paid homecare Target Market: $86.5B Non-medical homecare (placeholder assumption of 50%) Y1-Y3 Revenue: $390K, $780K, $3.9M # of clients (50, 200, 500) * 1300 hours of care per year * 30% of hourly rate captured * $20 hourly rate Sources: Business Insider, The New York Times
  59. Pain Relievers • Immediate forum answers for urgent and niche questions • Value Proposition Canvas Products / Services • Two-sided marketplace offering caregiver-client discovery and matching, scheduling support • Match families into community forums based on their care-need Value Proposition: Marketplace & Community Forum Gains Creators • Matching algorithm • Develop informal knowledge base through community forum Customer Segment: Families & Caregivers Pains • Urgent questions with no one to answer • Low-supply of caregivers Customer Jobs • Finding quality care • Trusting caregivers • Mental health drain on families Gains • Support, advice, and word-of-mouth references • Alleviate loneliness through community • Higher wages for caregivers than agencies
  60. Initial SME interviews have validated the opportunity - Ashley Braiser Partner, Lightspeed Venture Partners “Aging is a huge market. The key will be figuring out the distribution channels and managing carer and customer acquisition costs” - Taylor McLemore Managing Director, Techstars Workforce Dev. Accelerator “There’s a big opportunity for durable labor marketplaces, particularly in the healthcare space, if you give workers credentials and treat them well” -Rob Chess Stanford Professor, teaches “Longevity: Business Implications & Opportunities” “There’s an opportunity to professionalize at- home care. Not a lot of training goes on currently and there’s a need for more tools to help families monitor and manage care”
  61. Test 001: Marketplace solution Test Card HYPOTHESIS OUR TEST METRIC WE’RE RIGHT IF Is finding clients a key painpoint for caregivers? Will families trust an app-based solution? Yes/No and rationale, level of enthusiasm 50% of interviews demonstrate enthusiasm RESULT Finding families is not a key pain point for caregivers but it is for families (labor shortage) NOW WHAT Solve different pain point (low wage) for caregivers while providing finding/matching for families Ask 10 interviewees whether they would have appetite for this type of product
  62. Ask family interviewees whether community/loneliness/lack of knowledge is a pain point? Is there market appetite for creating a family community circle/forum to help navigate care? Test 002: Community value prop Test Card HYPOTHESIS OUR TEST METRIC WE’RE RIGHT IF Yes/No and rationale, level of enthusiasm 50% of interviews demonstrate enthusiasm RESULT Community is sought for some specialized conditions, but not as easy to build as for childcare b/c of decline NOW WHAT TBD
  63. Ask family interviewees how often last-minute care is an issue and how much they’d be willing to pay Families will pay higher rate for last-minute trusted care Test 003: Last-minute care Test Card HYPOTHESIS OUR TEST METRIC WE’RE RIGHT IF # of last-minute care needs per mo. $ per hour for last-minute care Last minute care is needed 2x per month and customers willing to pay 50% more RESULT TBD NOW WHAT TBD
  64. Landing page with onboarding steps (on-demand vs. scheduled) Families are actively searching for caregivers in their communities Test 004: Demand for MVP Test Card HYPOTHESIS OUR TEST METRIC WE’RE RIGHT IF Click through-rate & % on-demand vs. scheduled Click-through rate is higher than 0.5%; families are willing to try on- demand RESULT TBD NOW WHAT TBD
  65. A/B test FB ads for consistent care roles vs. ad-hoc shift work Caregivers value on-demand shift work Test 005: Caregiver take-up Test Card HYPOTHESIS OUR TEST METRIC WE’RE RIGHT IF Click through-rate for % on-demand vs. scheduled Click-through rate is higher than 0.5% RESULT TBD NOW WHAT TBD
  66. MVP-Community forum
  67. - Upsell: Offer concierge app service with more white-glove support, help vetting/coordinating - Next sell: Discounts for pre-purchased caregiver time - Cross sell: Discounts for add-on caregiver time - Referrals: Free care hours for new customer referrals Acquire Ads (FB, NextDoor, Google, Podcasts) - $60 (see next slides) Primary care, DME stores, pharmacy advertisement - Wide reach with potential caregiver acquisition potential Activate In-app promotions - Free care hours for new customers Upsell, Next Sell; Cross Sell; Referr KEEP GROW GET Client relationship funnel Keep Customers Recurring Value - Guaranteed caregivers - Search automated, superior scheduling and management platform
  68. Caregiver relationship funnel - Upsell: Offer preferential opportunities for higher rated caregivers - Next sell: Increase pay after working more care hours - Cross sell: Eventually, could offer training opportunities on app to increase skill range and potential pay - Referrals: Bonus pay for caregiver referrals Acquire Combined digital and local acquisition model Ads (FB, NextDoor) - $50-$100 CAC CNA certification platforms, nursing schools, HCAs, community colleges, unemployment agencies - Wide reach with potential caregiver acquisition potential Activate In-app promotions - Bonus pay for taking first request - Bonus pay for x # of days active on app Upsell, Next Sell; Cross Sell; Referr KEEP GROW GET Keep Customers Recurring Value - Higher pay, flexible hours, hyperlocal clients - The higher your rating the higher your wage
  69. ~$360 Total CAC Burdened with Both Sides of the Marketplace 1.0% Conversion Estimate Customer acquisition cost Convert to Customer 2 0.5% Conversion Estimate Paid Acquisition 1 $0.56 CPC 1.77% CTR Actual - Facebook Ads = $110 CAC Families 2 Convert to Customer Paid Acquisition 1 $2.50 CPC ~1.0% CTR Estimate = $250 CAC Caregivers
  70. Customer LTV Unburdened w/ Caregiver Cost Including Caregiver Cost
  71. Learning goals self-assessment LEARNING GOAL SCORE R/Y/G COMMENTS EXPLAINING YOUR SCORE AND/OR WHAT YOU WILL CHANGE 1. Form hypotheses y Have been able to learn a lot about the caregiving space and identify the pain points for all the stakeholders (agencies, caregivers, families) 2. Design and conduct customer, partner, and supplier interviews We’ve recognized the stakeholders that we need to focus on and have been able to conduct interviews with a lot of these individuals. 3. Design and build minimum viable products (MVPs) We spent quite a bit of time researching the space and trying to focus our hypotheses through conducting interviews- we got to the building MVP stage slightly later. 4. Design and run experiments Because of the slightly delayed MVP and limited budget, we only recently launched our Facebook ads. 5. Determine if hypotheses are true or false based on interview and experimental results Limited reach of FB ads has led to small data on hypotheses 6. Work effectively in teams under pressure We’ve been good at taking the ‘all hands on deck’ approach when dealing with the workload. We’ve established a working system for interviews, the MVP, and testing. 7. Communicate your progress in weekly presentations Have been showing all the shifts in our thinking during the week and communicating our interview and test findings. 8. Form new hypotheses based on learning We focus on the findings of each interview and use those to shape what else we want to learn. 9. Pivot (adapt strategy) based on new data Have honed focus since week 1 based on interviews and other information. 10. Achieve (or know you have not achieved) product-market fit We have been very deliberate about determining the customers we’re addressing and what pain points we’re trying to fix.
  72. WHAT WERE WE LAST WEEK Caregiver marketplace for on-demand care for complex elderly populations Where we were...marketplace differentiated by on-demand care ● Learned from parallel industries: childcare, child learning, adult learning. ● Focused marketplace on most complex care needs (ALS, dementia, etc.) because not well- served today (and likely most impacted when there’s a cancellation / no-show) ● Care coordination is a major pain point for all players: caregivers, agencies, and families. ● Last-minute cancellations are frequent (11% of scheduled visits) and highly disruptive to families WHAT ARE WE THIS WEEK Caregiver marketplace for scheduled and last-minute care Where we are...Zeroing in on how to build trust and make money ● Last-minute care is particularly hard from trust-perspective given limited time to interview / vet ● Community “circles of trust” to vet and refer caregivers ● Potentially offer back-up care as a corporate benefit (B2B2C) - huge need and awareness post- COVID, CHROs have indicated interest & desire to offer ● Other channel opportunity: partner with Accountable Care Organization through Medicare Advantage consumers (e.g. Landmark) Our journey so far

    Be the first to comment

business model, business model canvas, mission model, mission model canvas, customer development, lean launchpad, lean startup, stanford, startup, steve blank, entrepreneurship, I-Corps, Stanford

Views

Total views

13,250

On Slideshare

0

From embeds

0

Number of embeds

12,546

Actions

Downloads

6

Shares

0

Comments

0

Likes

0

×