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UDACITY
A case study
By
Spurthi Peddisetty (resume)
Analyze what are the good things about Udacity currently from Product perspective
● Nano Degree is the unique proposition: Learn only what is needed for a specialization.
● Well designed course finder: Filtering by category, type, skill level
● Course content created by experienced practitioners from Industry leaders like Google. This results in:
○ High Quality course content which covers practical aspects of learning.
○ Good Brand Strategy by partnering with Industry Leaders.
● Personalized Mentoring
● Career services by partnering with Industry Leaders.
● Good Assembly of Instructional Content, Quizzes to reinforce the learning, Concepts and Summary.
● Free trial of 3 days contributes to customer acquisition.
● Freemium Model: Free courses are available.
● Targeted and Tailored for both Business and individuals.
● Choice to the customer between nano degree and short term courses
● Discussion Forums for collaboration between learners.
● Single step signup results a low drop off.
What can be improved? And how?
● Ability to make notes as course is going on and linking it to the point in the video.
● Discussion forums have a lot of good insights (eg. One question had 1058 answers). Surface the key insights
● Udacity being Global product, it should use translation services to extend the courses in other languages.
● The website navigation and usability has a scope for improvement. Following are some key ones:
○ No clarity on navigating back from Classroom page
○ Availability of the % course approx time completion on the classroom page
○ Restart at the same time on re-login where it has stopped
○ Redirection to course page directly from enrollment page
What other new ideas will you bring in if you were the product manager of Udacity?
No Features Work stream Metric Improved Priority
1 Share Achievements on Social Platforms Customer
Experience
New customers
acquired
P0
2 Retargeting -Analytics Platform for Udacity Marketers Activation DAU (Daily Active users) P0
3 Course Recommender Customer
Experience
No.of registered courses P1
4 Industry target courses:
Monetisation
ARPU(Average revenue
per user)
P2
5 Peer learning Platform Customer
Engagement
DAU (Daily Active users) P2
6 Credit availability for performing students Acquisition Course completion rates P1
7 Gamification: Grading and leader board position Customer
Experience
DAU (Daily Active users) P3
8 Chatbot Enabled Interactive Discussion Forum Customer
Experience
DAU (Daily Active users) P3
9 Expansion Beyond Computer Science towards emerging fields e.g. Nanotechnology Market Expansion New customers
acquired
P2
I have explained these features in this Document.
I have considered the Top Four prioritised features for ROI calculation in the following
slides.
Try to quantify the ROI of each idea/improvement you suggest?
I am making the following Assumptions for this question:
● All technical resources are already available in the organisation
● ROI calculation for all the features is the based on the guess-timates made
● Guesstimates are made on the following conversion funnel
○ Udacity Customer Base: 1.6 million (reference)
○ Monthly active users: 0.16 million
○ Number of students complete course every month (⅓ active users): 0.05 million
○ Number of customer exploring Nano degree courses: 10000 students
○ Number of course registration happen per month : 0.05 million
○ Average course fee :Rs.50, 000
Share Achievements on Social Platforms
Investment:
● Development Effort: 2 Man days
● Total Investment: Rs. 30, 000
Returns
● Customer Base :1.6 million, Current Active users: 0.05 million users complete course
every month
● Every one in five would share in the network
● Every 1 in 10 shares result in the conversion of sign up
● Every 1 in 10 new sign ups take a paid course
● This leads us to around 100 new paid customers who have subscribed to a course.
● Assuming an average course fee of Rs.50,000 per course, the resultant revenue is:
● Revenue = 100 * 50,000 = Rs.50,00,000
Retargeting
Investment
● Man Effort for the development: 1 Man Month
● Investment : Rs.4,50,000
Returns
● Customer Base :1.6 million.
● No.of customer exploring to do course in Udacity per month : 10000 *
● On retargeting 1 in 10 would lead to conversion : 1000 new course
● 50 in 1000 would be paid ,hence revenue =50 *50,000 =Rs.25,00,000 per month
Course Recommender
Investment
● Man Effort for the development: 1 Months
● Investment : Rs.4,50,000
Returns
● Customer Base is :1.6 million
● No.of active users:0.16 million per month
● 25 % increase in course registrations in this 1/10th would be paid courses.
● Total revenue increase would be :Rs. 6,25,00,000
Credit availability for performing students
Investment
● Development Effort: 10 man days
● Amount spent on the Student on star performance per Nano degree for top 10% in the course
● 1000 Students per month :Rs.1,00,000 per student per year
● 50 % of them get placed ,placement commission from Industry leaders will be equal to 1 month
salary ,i.e 2,00,000 per user (Hence Break even on investment on Student)
● Investment: Rs 1,50,000
Returns
● It would improve no.of students for paid courses (by 10%) and increase in performance as well.
● Increase in 100 students signup for Nanodegree per month .Revenue is Rs.50,000 per user
● Total Revenue =Rs.50,00,000 per month
Mention any low hanging items which can be put to market very quickly
Feature Implementation
Social share https://www.addthis.com/get/share(Can be
easily implemeted in house as well)
Credit availability for performing students Can be easily implemented
Retargeting Can use Amazon Redshift -Data Warehousing
solution to fast track delivery
Course Recommender Can use Google Cloud Platform for
Recommendation Engine to fast track delivery
THANK YOU.
spurthi.peddisetty@gmail.com

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Udacity

  • 1. UDACITY A case study By Spurthi Peddisetty (resume)
  • 2. Analyze what are the good things about Udacity currently from Product perspective ● Nano Degree is the unique proposition: Learn only what is needed for a specialization. ● Well designed course finder: Filtering by category, type, skill level ● Course content created by experienced practitioners from Industry leaders like Google. This results in: ○ High Quality course content which covers practical aspects of learning. ○ Good Brand Strategy by partnering with Industry Leaders. ● Personalized Mentoring ● Career services by partnering with Industry Leaders. ● Good Assembly of Instructional Content, Quizzes to reinforce the learning, Concepts and Summary. ● Free trial of 3 days contributes to customer acquisition. ● Freemium Model: Free courses are available. ● Targeted and Tailored for both Business and individuals. ● Choice to the customer between nano degree and short term courses ● Discussion Forums for collaboration between learners. ● Single step signup results a low drop off.
  • 3. What can be improved? And how? ● Ability to make notes as course is going on and linking it to the point in the video. ● Discussion forums have a lot of good insights (eg. One question had 1058 answers). Surface the key insights ● Udacity being Global product, it should use translation services to extend the courses in other languages. ● The website navigation and usability has a scope for improvement. Following are some key ones: ○ No clarity on navigating back from Classroom page ○ Availability of the % course approx time completion on the classroom page ○ Restart at the same time on re-login where it has stopped ○ Redirection to course page directly from enrollment page
  • 4. What other new ideas will you bring in if you were the product manager of Udacity? No Features Work stream Metric Improved Priority 1 Share Achievements on Social Platforms Customer Experience New customers acquired P0 2 Retargeting -Analytics Platform for Udacity Marketers Activation DAU (Daily Active users) P0 3 Course Recommender Customer Experience No.of registered courses P1 4 Industry target courses: Monetisation ARPU(Average revenue per user) P2 5 Peer learning Platform Customer Engagement DAU (Daily Active users) P2 6 Credit availability for performing students Acquisition Course completion rates P1 7 Gamification: Grading and leader board position Customer Experience DAU (Daily Active users) P3 8 Chatbot Enabled Interactive Discussion Forum Customer Experience DAU (Daily Active users) P3 9 Expansion Beyond Computer Science towards emerging fields e.g. Nanotechnology Market Expansion New customers acquired P2
  • 5. I have explained these features in this Document. I have considered the Top Four prioritised features for ROI calculation in the following slides.
  • 6. Try to quantify the ROI of each idea/improvement you suggest? I am making the following Assumptions for this question: ● All technical resources are already available in the organisation ● ROI calculation for all the features is the based on the guess-timates made ● Guesstimates are made on the following conversion funnel ○ Udacity Customer Base: 1.6 million (reference) ○ Monthly active users: 0.16 million ○ Number of students complete course every month (⅓ active users): 0.05 million ○ Number of customer exploring Nano degree courses: 10000 students ○ Number of course registration happen per month : 0.05 million ○ Average course fee :Rs.50, 000
  • 7. Share Achievements on Social Platforms Investment: ● Development Effort: 2 Man days ● Total Investment: Rs. 30, 000 Returns ● Customer Base :1.6 million, Current Active users: 0.05 million users complete course every month ● Every one in five would share in the network ● Every 1 in 10 shares result in the conversion of sign up ● Every 1 in 10 new sign ups take a paid course ● This leads us to around 100 new paid customers who have subscribed to a course. ● Assuming an average course fee of Rs.50,000 per course, the resultant revenue is: ● Revenue = 100 * 50,000 = Rs.50,00,000
  • 8. Retargeting Investment ● Man Effort for the development: 1 Man Month ● Investment : Rs.4,50,000 Returns ● Customer Base :1.6 million. ● No.of customer exploring to do course in Udacity per month : 10000 * ● On retargeting 1 in 10 would lead to conversion : 1000 new course ● 50 in 1000 would be paid ,hence revenue =50 *50,000 =Rs.25,00,000 per month
  • 9. Course Recommender Investment ● Man Effort for the development: 1 Months ● Investment : Rs.4,50,000 Returns ● Customer Base is :1.6 million ● No.of active users:0.16 million per month ● 25 % increase in course registrations in this 1/10th would be paid courses. ● Total revenue increase would be :Rs. 6,25,00,000
  • 10. Credit availability for performing students Investment ● Development Effort: 10 man days ● Amount spent on the Student on star performance per Nano degree for top 10% in the course ● 1000 Students per month :Rs.1,00,000 per student per year ● 50 % of them get placed ,placement commission from Industry leaders will be equal to 1 month salary ,i.e 2,00,000 per user (Hence Break even on investment on Student) ● Investment: Rs 1,50,000 Returns ● It would improve no.of students for paid courses (by 10%) and increase in performance as well. ● Increase in 100 students signup for Nanodegree per month .Revenue is Rs.50,000 per user ● Total Revenue =Rs.50,00,000 per month
  • 11. Mention any low hanging items which can be put to market very quickly Feature Implementation Social share https://www.addthis.com/get/share(Can be easily implemeted in house as well) Credit availability for performing students Can be easily implemented Retargeting Can use Amazon Redshift -Data Warehousing solution to fast track delivery Course Recommender Can use Google Cloud Platform for Recommendation Engine to fast track delivery