The startup owners manual sxsw

The startup owners manual sxsw
The Startup Owners Manual Steve Blank Stanford - School of Engineering U.C. Berkeley - Haas School Of Business www.steveblank.com Twitter: @sgblank
See the Animated Version of this Presentation at: http://www.slideshare.net/sblank/th e-startup-owners-manual-sxsw-the- movie-2
This Talk is Based On • Business Model Generation • The Lean Startup • Four Steps to the Epiphany
This Talk is Based On • Business Model Generation • The Lean Startup • The Startup Owners Manual
Not all those who wander are lost Bilbo Baggins
The Search for a Path 1602 - 1908
The Path to Business Execution But Startups are Not Smaller Versions of Larger Companies
From Atoms to Bits
The Startup Path Search Versus Execution
What’s a Startup?
What’s a Business Model?
Value Proposition What Are You Building and For Who?
Customer Segments Who Are They? Why Would They Buy?
Channels How does your Product Get to Customers?
Customer Relationships How do you Get, Keep and Grow Customers?
Revenue Streams How do you Make Money?
Key Resources What are your most important Assets?
Key Partners Who are your Partners and Suppliers?
Key Activities What’s Most Important for the Business?
Cost Structure What are the Costs and Expenses
Turning Hypotheses Into Facts
The Four Steps – The Startup Path Customer Development
Customer Development There Are No Facts Inside The Building, So Get the Heck Outside
Customer Development Test the Problem, Then the Solution
Customer Development The Entrepreneurial Journey
Startup Owners Manual
Startup Owners Manual National Science Foundation
Startup Owners Manual • Yes there’s an E-Book version coming • Free autographed copies - Sunday Startup America Salon E 1:30 -3pm
Examples from the Book
Examples from the Book
Customer Relationships
Customer Relationships Web/Mobile Products– Get Customers © 2012 Steve Blank
Customer Relationships Web/Mobile Products– Keep Customers © 2012 Steve Blank
Customer Relationships Web/Mobile Products– Grow Customers © 2012 Steve Blank
Customer Relationships Web/Mobile Products Get/Keep/Grow © 2012 Steve Blank
Customer Relationships Physical & Web Mobile Are Different © 2012 Steve Blank
Customer Relationships Physical & Web Mobile Are Different © 2012 Steve Blank
How Does This Really Work? Lean LaunchPad Class National Science Foundation
How Does This Really Work? 8 Weeks from an Idea to a Business
Interviews: 252 Partner: 10 Survey: 76 Team Dynamo Final Presentation
THE TEAM MeghGautam Al Hassan Hleileh MS&E MS MBA 2  BTech in IT  MA in POL PICTURE PICTURE ECON SOC H Hung Le ElikaMahdavi MS&E MS MS&E MS  BS in EE/CS  BS in Indus.Eng. PICTURE PICTURE
TABLE OF CONTENTS 1. Overview of our idea evolution 2. Our journey from week 1 to week 8 3. Current Idea  Archetype  Product vision  Partner  Channel & Demand Creation  Competitive Landscape  Market Sizing 4. Lesson learned and what next
IDEA EVOLUTION THROUGH PIVOT 1 2 3 4 5 6 7 8 Travel Social Ex-pat Safe Travel inspiration - Nudge to enrich life booking travel travel travel Social platform that portal for planning portal to portal for nudges people to Middle Middle US inspire and enrich Easterns East travelers their life to M.E. Focus Competition Market size Market Scalability Customer Customer size Market size Insights Insights Research
Interviews: 20 1 Travel booking portal for Middle Easterns
WEEK 1 – MAKE MY DREAM Week 1 New Remain Remove Middle East focused Travel booking portal Hotels  Middle East focused platform price Product Development Lowest Trusted relationships Young and the affluent Airlines A/B testing Best inventory Successful partnerships High disposable incomes Events (Festivals) Relationship with Convenient Brand awareness/ Willing to explore  Offer a booking platform with group discounts and flash-sales Car rentals Promotion companies hotels; airlines; car rentals Experiential UI Social Validation identification Pilots Young and single Deal listings Sourcing deals Create a Community Cross pollination Divergent origins State Tourism Acquisition, retain Multiple options Events (Parties!) Social media savvy  Ramp up strategy through social conversations Travel agents customers Best Actionable deals Conventions (CES) Relevant locations Young couples Business Schools Trendsetting behavior  Preserve memories of travel through photo sharingand quotes (Study groups) Young families Best education for kids Cultural experience Web and mail Trendy destinations Advertising Market understanding Social Media Best in class product Word of Mouth Relationship with Referrals partners Customer call centers Human Capital Magazines Human Capital Percentage of booking costs Product Development Percentage of hotel/package (s) Advertising costs Advertising revenues Maintaining relationships Event of the month Refunds Exclusive partnership with events
WEEK 1 – MAKE MY DREAM Week 1 New Remain Remove Hotels Product Development Lowest price Trusted relationships Young and the affluent Airlines A/B testing Best inventory Successful partnerships High disposable incomes Events (Festivals) Relationship with Convenient Brand awareness/ Willing to explore Car rentals hotels; airlines; car Experiential UI identification Promotion companies rentals Social Validation Pilots Young and single Deal listings Sourcing deals Create a Community Cross pollination Divergent origins State Tourism Acquisition, retain Multiple options Events (Parties!) Social media savvy Travel agents customers Best Actionable deals Conventions (CES) Relevant locations Young couples Business Schools Trendsetting behavior (Study groups) Young families Best education for kids Cultural experience Web and mail Trendy destinations Advertising Market understanding Social Media Best in class product Word of Mouth Relationship with Referrals partners Customer call centers Human Capital Magazines Human Capital Percentage of booking costs Product Development Percentage of hotel/package (s) Advertising costs Advertising revenues Maintaining relationships Event of the month Refunds Exclusive partnership with events
WEEK 1 – MAKE MY DREAM Week 1 New Remain Remove Hotels Product Development Lowest price Trusted relationships Young and the affluent Airlines A/B testing Best inventory Successful partnerships High disposable incomes Events (Festivals) Relationship with Convenient Brand awareness/ Willing to explore Car rentals hotels; airlines; car Experiential UI identification Promotion companies rentals Social Validation Pilots Young and single Deal listings Sourcing deals Create a Community Cross pollination Divergent origins State Tourism Acquisition, retain Multiple options Events (Parties!) Social media savvy Travel agents customers Best Actionable deals Conventions (CES) Relevant locations Young couples Business Schools Trendsetting behavior (Study groups) Young families Best education for kids Cultural experience Lack of focus in value propositions Web and mail Trendy destinations Advertising Market understanding Social Media  Too broad a platform Best in class product Word of Mouth Relationship with Referrals partners Customer call centers  Too many value propositions Human Capital Magazines Human Capital Percentage of booking costs Product Development Percentage of hotel/package (s) Advertising costs Advertising revenues Maintaining relationships Event of the month Refunds Exclusive partnership with events
WEEK 1 – MAKE MY DREAM Week 1 New Remain Remove Hotels Product Development Lowest price Trusted relationships Young and the affluent Airlines A/B testing Best inventory Successful partnerships High disposable incomes Events (Festivals) Relationship with Convenient Brand awareness/ Willing to explore Car rentals hotels; airlines; car Experiential UI identification Promotion companies rentals Social Validation Pilots Young and single Deal listings Sourcing deals Create a Community Cross pollination Divergent origins State Tourism Acquisition, retain Multiple options Events (Parties!) Social media savvy Travel agents Conventions (CES) customers Market sizing problem Best Actionable deals Relevant locations Young couples Business Schools Trendsetting behavior (Study groups)  The method we used was a top-down approach Young families Best education for kids Cultural experience  We didn’t use net numbers (gross) Web and mail Trendy destinations Advertising Market understanding Social Media Best in class product Relationship with  The lesson here is that if we were to do it Word of Mouth Referrals partners again we would use bottom up / net figures Customer call centers Human Capital Magazines Human Capital Percentage of booking costs Product Development Percentage of hotel/package (s) Advertising costs Advertising revenues Maintaining relationships Event of the month Refunds Exclusive partnership with events
WEEK 1 – MAKE MY DREAM Week 1 New Remain Remove Lack of focus in customer segments Hotels Product Development Lowest price Trusted relationships Young and the affluent Airlines A/B testing Best inventory Successful partnerships High disposable incomes Events (Festivals) Relationship with We were not focused on a Convenient Brand awareness/ Willing to explore Car rentals hotels; airlines; car specific customer segment Experiential UI identification Promotion companies rentals Social Validation Pilots Young and single Deal listings Sourcing deals – too broad. Create a Community Cross pollination Divergent origins State Tourism Acquisition, retain Multiple options Events (Parties!) Social media savvy Travel agents customers Best Actionable deals Conventions (CES) Our interview base was Relevant locations Young couples Business Schools Trendsetting behavior (Study groups) biased towards our network – needed a better sample. Young families Best education for kids Cultural experience Web and mail Trendy destinations Advertising Market understanding Social Media Best in class product Word of Mouth Relationship with Referrals partners Customer call centers Human Capital Magazines Human Capital Percentage of booking costs Product Development Percentage of hotel/package (s) Advertising costs Advertising revenues Maintaining relationships Event of the month Refunds Exclusive partnership with events
WEEK 1 – MAKE MY DREAM Week 1 New Remain Remove Hotels Product Development Lowest price Trusted relationships Young and the affluent Airlines A/B testing Best inventory Successful partnerships High disposable incomes Key learning Events (Festivals) Relationship with Convenient Brand awareness/ Willing to explore Car rentals hotels; airlines; car Experiential UI identification Promotion companies rentals Social Validation Pilots Young and single  Focus is crucial – be it in your value proposition or in your customer Deal listings State Tourism Sourcing deals Acquisition, retain Create a Community Multiple options Cross pollination Events (Parties!) Divergent origins Social media savvy segmentation Travel agents customers Best Actionable deals Conventions (CES) Relevant locations Young couples Business Schools Trendsetting behavior  Market sizing – Use bottom up whenever possible (Study groups) Young families Best education for kids  Get out of the building – in spirit and in action. Avoid bias Cultural experience Trendy destinations Web and mail Advertising Market understanding Social Media Best in class product Word of Mouth Relationship with Referrals partners Customer call centers Human Capital Magazines Human Capital Percentage of booking costs Product Development Percentage of hotel/package (s) Advertising costs Advertising revenues Maintaining relationships Event of the month Refunds Exclusive partnership with events
Interviews: 20 1 2 Travel Social booking travel portal for planning Middle Easterns Customer focus
WEEK 2 – SOCIAL TRIP PLANNING Week 2 New Remain Remove Pivot to social travel planning for group traveling Social Networks Through Acquisition Customer our mentors, we really dug into our customers insights Easy and pleasurable Trusted relationships Young and the affluent Travel Publications Customer Retention trip planning Successful partnerships High disposable incomes Product Dev Best inventory Events (Parties!) Willing to explore Hotels  They were telling us that they didn’t just want to go to the Relationship with key Business Schools partners Convenient Brand awareness/ Young and single Travel agents middle east Sourcing deals Experiential UI identification Divergent origins Airlines Lowest price Pilots Social media savvy Events Multiple options Cross pollination Deal listings  They wanted a seamless, social and enjoyable travel Best Actionable deals Young couples Car rentals experience from A-Z Relevant locations Create a Community Trendsetting behavior Promotion companies Social Validation Young families State Tourism Conventions (CES)  We pivoted to The Middle Easts travel booking portal with a Best education for kids Cultural experience ramp up focused on influential who want easy and Word of Mouth Trendy destinations Social Media Market understandingtrip planning pleasurable Human Capital Web and mail Relationship with Advertising partners Referrals Customer call centers Best in class product Magazines Human Capital Percentage of booking costs Product Development Advertising costs Percentage of hotel/package (s) Maintaining relationships Advertising revenues Refunds Event of the month Exclusive partnership with events
WEEK 2 – SOCIAL TRIP PLANNING Week 2 New Remain Remove Social Networks Customer Acquisition Easy and pleasurable Trusted relationships Young and the affluent Travel Publications Customer Retention trip planning Successful partnerships High disposable incomes Product Dev Best inventory Events (Parties!) Willing to explore Hotels Relationship with key Business Schools partners Convenient Brand awareness/ Young and single Travel agents Sourcing deals Experiential UI identification Divergent origins Airlines Lowest price Pilots Social media savvy Events Multiple options Cross pollination Deal listings Best Actionable deals Young couples Relevant locations Trendsetting behavior Car rentals Create a Community Promotion companies Social Validation Young families State Tourism Best education for kids Conventions (CES) Cultural experience Word of Mouth Trendy destinations Social Media Market understanding Human Capital Web and mail Relationship with Advertising partners Referrals Customer call centers Best in class product Magazines Human Capital Percentage of booking costs Product Development Advertising costs Percentage of hotel/package (s) Maintaining relationships Advertising revenues Refunds Event of the month Exclusive partnership with events
WEEK 2 – SOCIAL TRIP PLANNING Week 2 New Remain Remove Social Networks Customer Acquisition Easy and pleasurable Trusted relationships Young and the affluent Travel Publications Customer Retention trip planning Successful partnerships High disposable incomes Product Dev Best inventory Events (Parties!) Willing to explore Hotels Relationship with key Business Schools partners Convenient Brand awareness/ Young and single Travel agents Sourcing deals Experiential UI identification Divergent origins Airlines Lowest price Pilots Social media savvy Events Multiple options Cross pollination Deal listings Best Actionable deals Young couples Relevant locations Trendsetting behavior Car rentals Create a Community Promotion companies Social Validation Young families State Tourism Best education for kids Conventions (CES) Cultural experience Trendy destinations Word of Mouth Social Media Market understanding Human Capital Web and mail Relationship with Advertising partners Referrals Customer call centers Best in class product Magazines Human Capital Percentage of booking costs Product Development Advertising costs Percentage of hotel/package (s) Maintaining relationships Advertising revenues Refunds Event of the month Exclusive partnership with events
WEEK 2 – SOCIAL TRIP PLANNING Week 2 New Remain Remove Social Networks Customer Acquisition Easy and pleasurable Trusted relationships Young and the affluent Travel Publications Customer Retention trip planning Successful partnerships High disposable incomes What was the problem? Product Dev Best inventory Events (Parties!) Willing to explore Hotels Relationship with key Business Schools partners Convenient Brand awareness/ Young and single Travel agents Sourcing deals Experiential UI identification Divergent origins Airlines When research for potential partners, we learned of several existing Lowest price Pilots Social media savvy Events competitors with similar product Multiple options Cross pollination Deal listings Best Actionable deals Young couples Relevant locations Trendsetting behavior Car rentals  crowded Create a Community Promotion companies Social Validation Young families State Tourism Best education for kids  hypercompetitive Conventions (CES) Cultural experience Trendy destinations Word of Mouth Social Media Market understanding Human Capital Web and mail Relationship with Advertising partners Referrals Customer call centers Best in class product Magazines Human Capital Percentage of booking costs Product Development Advertising costs Percentage of hotel/package (s) Maintaining relationships Advertising revenues Refunds Event of the month Exclusive partnership with events
WEEK 2 – SOCIAL TRIP PLANNING Week 2 New Remain Remove Social Networks Customer Acquisition Easy and pleasurable Trusted relationships Young and the affluent Travel Publications Customer Retention trip planning Successful partnerships High disposable incomes Key learning Product Dev Best inventory Events (Parties!) Willing to explore Hotels Relationship with key Business Schools partners Convenient Brand awareness/ Young and single Airlines  We should have looked at the competitive landscape earlier Travel agents Sourcing deals Experiential UI Lowest price identification Pilots Divergent origins Social media savvy Events Multiple options Cross pollination Deal listings Best Actionable deals Young couples  We should have spoken to industry / domain experts earlier Relevant locations Trendsetting behavior Car rentals Create a Community Promotion companies Social Validation Young families State Tourism Best education for kids Conventions (CES) Cultural experience Word of Mouth Trendy destinations Social Media Market understanding Human Capital Web and mail Relationship with Advertising partners Referrals Customer call centers Best in class product Magazines Human Capital Percentage of booking costs Product Development Advertising costs Percentage of hotel/package (s) Maintaining relationships Advertising revenues Refunds Event of the month Exclusive partnership with events
Interviews: 64 1 2 3 Travel Social Ex-pat booking travel travel portal for planning portal to Middle Middle Easterns East Competition
WEEK 3 – EX-PAT TRAVELING Week 3 New Remain Remove Pivot to Ex-pat Community Travel Portal We pivoted back to the original idea knowhow and on Trustedcustomer segment the affluent Social Networks Customer Acquisition Local with focus one relationships Young and Hotels Customer Retention content Successful partnerships High disposable incomes Business Schools Product Dev Willing to explore  A travel planner for Ex-Pat Easy and pleasurable Travel agents studentswho frequently (Parties!) Middle-East & Relationship with key Events visit the partnerstrip planning Young and single other major cities. Travel Publications Sourcing deals Best inventory Divergent origins Airlines Social media savvy Events  We want to capture & publish their travel experience. Deal listings Young couples Trendsetting behavior Word of Mouth Social Media Market understanding Human Capital Relationship with partners Human Capital Percentage of booking costs Product Development Advertising costs Maintaining relationships Refunds
WEEK 3 – EX-PAT TRAVELING Week 3 New Remain Remove Social Networks Customer Acquisition Local knowhow and Trusted relationships Young and the affluent Hotels Customer Retention content Successful partnerships High disposable incomes Business Schools Product Dev Willing to explore Travel agents Relationship with key Easy and pleasurable Events (Parties!) partners trip planning Young and single Travel Publications Sourcing deals Best inventory Divergent origins Airlines Social media savvy Events Deal listings Young couples Trendsetting behavior Word of Mouth Social Media Market understanding Human Capital Relationship with partners Human Capital Percentage of booking costs Product Development Advertising costs Maintaining relationships Refunds
WEEK 3 – EX-PAT TRAVELING Week 3 New Remain Remove Social Networks Customer Acquisition Local knowhow and Trusted relationships Young and the affluent Hotels Customer Retention content Successful partnerships High disposable incomes What was the problem? Business Schools Product Dev Willing to explore Travel agents Relationship with key Easy and pleasurable Events (Parties!) partners trip planning Young and single Travel Publications Sourcing deals Best inventory Divergent origins Airlines We interviewed 64 people and found: Social media savvy Events Deal listings Young couples  The market was too small Trendsetting behavior  There is little homogeneity in customer needs Word of Mouth  Too low frequency of travel to justify target Social Media market Market understanding Human Capital Relationship with partners Human Capital Percentage of booking costs Product Development Advertising costs Maintaining relationships Refunds
WEEK 3 – EX-PAT TRAVELING Week 3 New Remain Remove Social Networks Customer Acquisition Local knowhow and Trusted relationships Young and the affluent Hotels Customer Retention content Successful partnerships High disposable incomes Key learning Business Schools Product Dev Willing to explore Travel agents Relationship with key Easy and pleasurable Events (Parties!) partners trip planning Young and single Airlines  Market sizing is crucial Travel Publications Sourcing deals Best inventory Divergent origins Social media savvy Events Deal listings Young couples Trendsetting behavior Word of Mouth Social Media Market understanding Human Capital Relationship with partners Human Capital Percentage of booking costs Product Development Advertising costs Maintaining relationships Refunds
Interviews: 33 Survey: 46 1 2 3 4 Travel Social Ex-pat Safe booking travel travel travel portal for planning portal to portal for Middle Middle US Easterns East travelers to M.E. Market size
WEEK 4 – US TRAVEL TO Middle East Week 4 New Remain Remove Pivot to US Traveler Portal to Middle East Social Networks We expanded our market proposition US Customer Acquisition Safety to entire Trusted relationships Young and the affluent Alumni Associations Hotels travel market Customer Retention Product Development Localknowhowandconte nt Successful partnerships High disposable incomes Willing to explore Business Schools Relationship with key Community/Group Travel agents  Platform to facilitate Americans to partners Sourcing deals Travel -MBA Students Travel Publications travel to the Middle-East pleasurable Easy and Airlines trip planning Events Best inventory Deal listings Word of Mouth Social Media Market understanding Human Capital Relationship with partners Human Capital Percentage of booking costs Product Development Advertising costs Maintaining relationships Refunds
WEEK 4 – US TRAVEL TO Middle East Week 4 New Remain Remove Young affluent market Social Networks Customer Acquisition We surveyed 46 people and Safety proposition Trusted relationships MBA Students Alumni Associations Customer Retention Localknowhowandconte Successful partnerships Hotels Product Development interview 33 more nt Young and the affluent Business Schools Relationship with key Community/Group High disposable incomes Travel agents partners Travel Willing to explore Sourcing deals  Young & Affluent Americans Travel Publications Easy and pleasurable Airlines trip traveling to the Middle East planning Events need local insight. Best inventory Deal listings  We’ll be the trusted source! Word of Mouth Social Media Market understanding Human Capital Relationship with partners Human Capital Percentage of booking costs Product Development Advertising costs Maintaining relationships Refunds
WEEK 4 – US TRAVEL TO Middle East Week 4 New Remain Remove Social Networks Customer Acquisition Safety proposition Trusted relationships Young and the affluent Alumni Associations Customer Retention Localknowhowandconte Successful partnerships High disposable incomes Hotels Product Development nt Willing to explore Business Schools Relationship with key Community/Group Travel agents partners Travel -MBA Students Sourcing deals Travel Publications Easy and pleasurable Airlines trip planning Events Best inventory Deal listings Word of Mouth Social Media Market understanding Human Capital Relationship with partners Human Capital Percentage of booking costs Product Development Advertising costs Maintaining relationships Refunds
WEEK 4 – US TRAVEL TO Middle East Week 4 New Remain Remove Launched website with full basic booking functionalities Social Networks Customer Acquisition Safety proposition Trusted relationships MBA Students Alumni Associations Customer Retention Localknowhowandconte Successful partnerships Hotels Ebtism.com went liveProduct Development nt Young and the affluent Business Schools Relationship with key Community/Group High disposable incomes Travel agents partners Travel Willing to explore  Full basic functionalities (login, browse deals and book trips) Sourcing deals Travel Publications Easy and pleasurable Airlines trip planning Events  4 sourced deals from agencies Best inventory Deal listings  42 GSB students booked Word of Mouth Social Media Market understanding Human Capital Relationship with partners Human Capital Percentage of booking costs Product Development Advertising costs Deals selection Exclusive login Value proposition Ability to book trips Maintaining relationships (real sourcing) Refunds
WEEK 4 – US TRAVEL TO Middle East Week 4 New Remain Remove Social Networks Customer Acquisition Safety proposition Trusted relationships MBA Students Alumni Associations Customer Retention Localknowhowandconte Successful partnerships Hotels What was the problem? Product Development nt Young and the affluent Business Schools Relationship with key Community/Group High disposable incomes Travel agents partners Travel Willing to explore Sourcing deals We spoke to Christos Stergiou, and pleasurable truegreece.com (Greece Travel Publications Easy founder of Airlines Analogue) trip planning Events Best inventory Deal listings  10 years of development  $5M idea Word of Mouth Social Media Market understanding Human Capital Relationship with partners Human Capital Percentage of booking costs Product Development Advertising costs Maintaining relationships Refunds
WEEK 4 – US TRAVEL TO Middle East Week 4 New Remain Remove Social Networks Customer Acquisition Safety proposition Trusted relationships MBA Students Alumni Associations Customer Retention Localknowhowandconte Successful partnerships Hotels Key learning Product Development nt Young and the affluent Business Schools Relationship with key Community/Group High disposable incomes Travel agents partners Travel Willing to explore Sourcing deals Market size need to be VENTURE SCALE Travel Publications Easy and pleasurable Airlines trip planning Events Best inventory We want to DISRUPT the Travel Space. Deal listings Let’s Re-think the Entire Idea! Word of Mouth Social Media Market understanding Human Capital Relationship with partners Human Capital Percentage of booking costs Product Development Advertising costs Maintaining relationships Refunds
Interviews: 17 Survey: 10 1 2 3 4 5 Travel Social Ex-pat Safe Social booking travel travel travel platform portal for planning portal to portal for that Middle Middle US nudges Easterns East travelers people to to M.E. travel Market size
WEEK 5 – TRAVEL NUDGE Week 5 Paying partner side End-user side Remove Pivot to travel inspiration Social Networks We pivot to a brand new market Customer Acquisition Enrichment (Travel) Trusted relationships Online travelers Travel Websites Customer Retention Leads Successful partnerships Travel Websites Product Development Alumni Associations  Inspire people to travelproposition Safety more Relationship with key MBA Students Travel agents partners Local knowhow and Business Schools through recommendation content Young and the affluent Hotels Sourcing deals Community/Group High disposable incomes Travel Willing to explore  Relevant based on social graph and travel history Word of Mouth Social Media User data Human Capital Relationship with partners Human Capital Leads Product Development Advertising Advertising costs Maintaining relationships Percentage of booking costs Refunds
WEEK 5 – TRAVEL NUDGE Week 5 Paying partner side End-user side Remove Inception of Nudge by looking at the competitive landscape Social Networks Customer Acquisition Enrichment (Travel) Trusted relationships Online travelers Travel Websites Customer Retention Leads Successful partnerships Travel Websites Product Development Alumni Associations Relationship with key Safety proposition MBA Students Travel agents partners Local knowhow and Business Schools content Young and the affluent Hotels Sourcing deals Community/Group High disposable incomes Travel Willing to explore Revised later Word of Mouth Social Media User data Human Capital Relationship with partners Human Capital Leads Product Development Advertising Advertising costs Maintaining relationships Percentage of booking costs Refunds
WEEK 5 – TRAVEL NUDGE Week 5 Paying partner side End-user side Remove Social Networks Customer Acquisition Enrichment (Travel) Trusted relationships Online travelers Travel Websites Customer Retention Leads Successful partnerships Travel Websites Product Development Alumni Associations Relationship with key Safety proposition MBA Students Travel agents partners Local knowhow and Business Schools content Young and the affluent Hotels Sourcing deals Community/Group High disposable incomes Travel Willing to explore Word of Mouth Social Media User data Human Capital Relationship with partners Human Capital Leads Product Development Advertising Advertising costs Maintaining relationships Percentage of booking costs Refunds
WEEK 5 – TRAVEL NUDGE Week 5 Paying partner side End-user side Remove Sizeable potential market Social Networks Customer Acquisition Enrichment (Travel) Trusted relationships Online travelers Travel Websites Customer Retention Leads Bottom-up estimation Successful partnerships Travel Websites Product Development Alumni Associations TAM = $900MSafety proposition Relationship with key MBA Students Travel agents Business Schools partners Local knowhow and content  Market = population x nudgethe affluent Young and Hotels Sourcing deals Community/Group frequency x CTR x CPCdisposable incomes High Travel Willing to explore SAM = $373M  With leads revenue sharing model, TAM is based on assumptions of nudges frequency and conversion SOM = $267M Word of Mouth User data  Target market is justifiable with an Social Media Human Capital annual revenue of $267 million with Relationship with partners 31% market penetration Human Capital Leads Product Development Advertising Advertising costs Maintaining relationships Percentage of booking costs Refunds
WEEK 5 – TRAVEL NUDGE Week 5 Paying partner side End-user side Remove Mock up of the product for customer interview Social Networks Customer Acquisition Enrichment (Travel) Trusted relationships Online travelers Travel Websites Customer Retention Leads Successful partnerships Travel Websites Product Development Alumni Associations Relationship with key Safety proposition MBA Students Travel agents partners Local knowhow and Business Schools content Young and the affluent Hotels Sourcing deals Community/Group High disposable incomes Travel Willing to explore Word of Mouth Social Media User data Human Capital Relationship with partners Human Capital Leads Product Development Advertising Advertising costs Maintaining relationships Percentage of booking costs Refunds
Interviews: 52 + 3 partners 1 2 3 4 5 6 Travel Social Ex-pat Safe Travel inspiration - booking travel travel travel Social platform that portal for planning portal to portal for nudges people to Middle Middle US inspire and enrich Easterns East travelers their life to M.E.
WEEK 6 – TRAVEL NUDGE Week 6 Paying partner side End-user side Remove Social Networks Customer Acquisition Enrichment (Travel) Trusted relationships Online travelers Travel Websites Customer Retention Customer Acquisition Successful partnerships Travel Websites Product Development Relationship with key Leads partners Word of Mouth Social Media User data Human Capital Relationship with partners Human Capital Cost per acquisition Product Development Advertising costs Leads Maintaining relationships Advertising
WEEK 6 – TRAVEL NUDGE Week 6 Paying partner side End-user side Remove Partner Social Networks Customer Acquisition Enrichment (Travel) Trusted relationships Online travelers Travel Websites Reach out to Travelocity (Jim Hornthal) Customer Retention Customer Acquisition Successful partnerships Travel Websites Product Development Relationship with key Leads partners  Customer insights differed  Technological challenges (e.g. cookies)  Revenue share instead of lead generating Reach out to Expedia andBookingmarkets Word of Mouth Social Media User data  Confirm revenue share model (5% - 10%) and we Human Capital Relationship with partners even got a standard term Human Capital Cost per acquisition Product Development Advertising costs Leads Maintaining relationships Advertising
WEEK 6 – TRAVEL NUDGE Week 6 Paying partner side End-user side Remove The customers value relevance of nudges Social Networks Customer Acquisition Enrichment (Travel) Trusted relationships Online travelers Travel Websites Then we went out of the building to interview 50partnerships Customer Retention Customer Acquisition Successful Travel Websites people at Stanford Mall Product Development Relationship with key Leads partners  What prevents people from traveling is time, not imagination or laziness (seasonal)  People don’t want to be nudged too often (1 per month) Word of Mouth  Referrals from close friends more valuable Social Media User data than referrals from strangers Human Capital Relationship with partners Human Capital Cost per acquisition Product Development Advertising costs Leads Maintaining relationships Advertising
Interviews: 16 1 2 3 4 5 6 7 Travel Social Ex-pat Safe Travel inspiration - Nudge to booking travel travel travel Social platform that enrich portal for planning portal to portal for nudges people to life Middle Middle US inspire and enrich Easterns East travelers their life to M.E. Market size
Week 7 WEEK 7 - NUDGE Expand from travel to include activity nudges Social Networks  Customer Acquisition our nudges to include activities, events, Students We expanded Enrichment (Activities + Trusted relationships Travel Websites Event Websites social reminders than just travels Customer Retention Product Development Travel) Customer Acquisition Successful partnerships Graduates Young Families University Events Relationship with key Merchants  Keep user more engaged with relevant frequent nudges Websites partners Enrichment (Travel) Travel Online travelers Word of Mouth Social Media User data Human Capital Relationship with partners Human Capital Cost per acquisition Product Development Advertising costs Maintaining relationships
Week 7 WEEK 7 - NUDGE Social Networks Customer Acquisition Enrichment (Activities + Trusted relationships Students Travel Websites Customer Retention Travel) Successful partnerships Graduates Event Websites Product Development Customer Acquisition Young Families University Events Relationship with key Merchants partners Enrichment (Travel) Travel Websites Online travelers Word of Mouth Social Media User data Human Capital Relationship with partners Human Capital Cost per acquisition Product Development Advertising costs Maintaining relationships
Week 7 WEEK 7 - NUDGE Social Networks Customer Acquisition Enrichment (Activities + Trusted relationships Students Travel Websites Customer Retention Travel) Successful partnerships Graduates Event Websites Product Development Customer Acquisition Young Families University Events Relationship with key Merchants partners Enrichment (Travel) Travel Websites Online travelers The customers want diverse nudges We went out of the building to interview 20 people Word of Mouth  People also want to be nudged in other User data Social Media things than just travel Human Capital Relationship with partners  Mobile is the most effective medium to increase engagement Human Capital Cost per acquisition Product Development Advertising costs Maintaining relationships
Week 7 WEEK 7 - NUDGE Social Networks Customer Acquisition Enrichment (Activities + Trusted relationships Students Travel Websites Customer Retention Travel) Successful partnerships Graduates Event Websites Product Development Customer Acquisition Young Families University Events Relationship with key Merchants partners Enrichment (Travel) Travel Websites Online travelers Word of Mouth Social Media User data Human Capital Relationship with partners Human Capital Cost per acquisition Product Development Advertising costs Maintaining relationships

Check these out next

The startup owners manual sxsw

Recommended

More Related Content

Slideshows for you(20)

Similar to The startup owners manual sxsw(20)

More from Stanford University(20)

Recently uploaded(20)

The startup owners manual sxsw

Editor's Notes