SlideShare a Scribd company logo
Auckland
Building the right things.
Practical ‘Market Validation’ tips and
techniques.
4th
Meetups in 2018
Who we are?
2000+ members
2hr 40 mins!
33 Meetups so far
Started in Feb 2015
Closing time
H&S / Obligatory
Instructions
In case of fire
Live
streaming
Toilets
Questions
Introduction to the
Speakers
Flavio Hangarter
Entrepreneur and Educator – Astrivio
Chris Stevens
Head of Product - Pushpay
What’s the most important goal?
Increase revenue - more sales
Increase revenue - upsells
Increase customer use
Increase customer happiness
Which assumptions need to be true?
Market opportunity big enough
Space in the market for our solution
Customer pain solved by our solution
Enough value for switching costs
Customers willing to pay
Which approach to test our assumptions?
Competitor research
Market sizing and estimating
Metrics and data
User or customer interviews
Check point.
Goal: Increase revenue by $350k p/a with a
payment option directly in the platform
Assumption Approach
Opportunity can generate $350k p/a Product metrics & market sizing
Buyers are willing & able to use
an integrated payment experience
Buyer interviews
Sellers will switch from the current
methods to a new way
Seller interviews
Sellers will pay for the service Seller interviews
Reporting Results
Can generate $350k p/a
Key findings
Expected revenue from transactions: 0.25% - 0.5% [1]
Total value of all sellers Jan - Dec 2017: $400m
Total addressable market: $1m - $2m [2]
At 25% of buyers using embedded payments: $250k - $500k
Sources - [1] Credit card revenue share [2] 2017 Seller activity and modelling
Can generate $350k p/a
Recommendations
Business development to initiate talks with payment processors
Buyer interviews to confirm ability to achieve 25% uptake
Market Validation
Write down the goal - for business success
Write down the assumptions
Write down the approach
Report the finding - full transparency
Provide recommendations and next steps
Thanks
James Espie - @JamesEspie on Twitter
Product Tank Auckland - @pmauckland on Twitter
Pushpay
Q & A
Thank you
Announcements
Micro meetups
Venues
ProductTank NZ
Slack workspace
@pmauckland
https://www.linkedin.com/company/producttank-auckland/
https://www.meetup.com/ProductTank-Auckland/

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Market validation and sizing