Download - Hot Spot Columbia

Transcript

Connor BoginMBA

Thomas GaubertIEOR MS&E

Troy HodgesEEE

Sam JonesMBA

Pranav NageshIEOR MS&E

Measuring real-time crowd sizes in public places and empowering users to make more informed decisions every time they leave the home

Total Interviews Performed: 119Interviews Since Last Class: 24

Day 1

HotSpot – Business Model Canvas – Day 1 Key Partners

Venues – we use bouncers/staff as source of data

Venues – we create a marketplace in which they are the “suppliers”

Google / other data providers – to obtain historic and real-time location information and occupancy levels

Hardware providers – for tracking occupancy and crowd information

Key Activities

Offer an application, which allows people to see how busy venues are (either historically at a given time or in real-time)Facilitate better venue decision making in any given cityProvide a marketplace that enables venues to communicate directly with potential customers

Value Propositions

Problem - Right now we have no way of knowing which venues are busy on an aggregated, real-time basis

Solution – We will:

More concisely and accurately inform people which venues are best for their needs

Aggregate the location info of users to enable venues to better understand customers and serve them

Customer Relationships

Engagement based on customer desire for optimal venue information

Very limited requirements from a support perspective

Customer Segments

Generally this has mass-market appeal –we will target the 21-30 demographic

Initial customer segment will working professionals without families between age 24-28

Channels

Distribute product through a smartphone app

Key Resources

Publically available map, geographic, and venue informationUser location data

Cost Structure

Upfront development of UI/UXCollection of traffic and occupancy dataMarketing to acquire usersScaling product and processes to support growing user baseHeadcount for technical and sales team

Revenue Streams

Online marketplace between users and venues – commission model – taking % of transaction feeAdvertisements in-appSale of data to SMBs and financial firms

Over the next five days, we tested hypotheses across the business model canvas by performing 119 interviews

means hypothesis passed

means hypothesis failed

Day 2

HotSpot – Business Model Canvas – Day 2 Key Partners

Venues – we plan to provide information for a wide range of venues, each with their own unique information which will be valuable to different customer segments.

Venues – if we create a marketplace in which they are the “suppliers” our app will provide the platform for direct sales / marketing efforts.

Google / other data providers – to obtain historic and real-time location information and occupancy levels

Hardware providers – for tracking occupancy and crowd information

Key Activities

Offer an application, which allows people to see how busy venues are (either historically at a given time or in real-time) and provide useful information about such venues.

Provide a marketplace that enables venues to communicate directly with potential customers

Value Propositions

Problem - Right now we have no way of knowing which venues are busy on an aggregated, real-time basis. Solution – We will:

More concisely and accurately inform people which venues are best for their needs

Venues: additional sales channel & marketing avenue, analytics will enable venues to better understand customers and serve them

Users: One stop shop for users which provides crowd information, venue information, reviews, uber transport options, and merchandise purchase opportunities and deals.

Customer Relationships

Engagement based on customer desire for optimal venue information

Very limited requirements from a support perspective

Customer Segments

Generally this has mass-market appeal –we will target the 21-30 demographic

Initial customer segment will working professionals without families between age 24-28

We have broadened our customer segment as we have widened our target market and demographic.

Our product has a much wider application and customers will be self segmented depending on their specific requirement

Channels

Distribute product through a smartphone app

Distribute the product through an online web offering in addition

Key Resources

Publically available map, geographic, and venue information

User location data Active input from both

users and venue staff

Cost Structure

Upfront development of UI/UX Collection of traffic and occupancy data. Storage data costs. Google API Key. Marketing to acquire users Scaling product and processes to support growing user base Headcount for technical and sales team

Revenue Streams

Online marketplace between users and venues – commission model – taking % of transaction fee

Advertisements in-app Sale of data to SMBs and financial firms

HotSpot – Petal Diagram

HotSpot

Social Reviewers

Search

Maps

Reservations

Crowd-sizingSoftware

Crowd-sizingHardware

1

1

2

22 1

1

2

Conducted meeting

Contacted

HotSpot – Market Size

TAM160M

SAM80M

Target Market20M

Total Available Market 200M smartphone users in US in 2016 80% of the US population lives in urban

and suburban areas, and we believe these populations would gain value from using this product

TAM in US market is 160M

Served Available Market 50% of TAM leverages digital tools to

inform public destination decision making

As a reference, Yelp has 80M unique monthly US visitors

SAM in US market is 80M

Target Market Assuming 25% penetration of the SAM

in a 3 year period As a reference, this would mean

achieving 25% of Yelp’s penetration Target Market is 20M

HotSpot – Type of Business

We leverage existing technology, aggregate passive data feeds, and add incremental user generated data inputs

We are building a technology-enabled startup

A wide range of people want to know historical population density in public venues

Users are increasingly interested in this information if it is accurate in real time

Users will want this data delivered through an interactive application

1 2 3

Day 3

HotSpot – Business Model Canvas – Day 3 Key Partners

Venues – we plan to provide information for a wide range of venues, each with their own unique information which will be valuable to different customer segments.

Venues – if we create a marketplace in which they are the “suppliers” our app will provide the platform for direct sales / marketing efforts.

Google / other data providers – to obtain historic and real-time location information and occupancy levels

Hardware providers – for tracking occupancy and crowd information

Key Activities

Offer an application, which allows people to see how busy venues are (either historically at a given time or in real-time) and provide useful information about such venues.

Provide a marketplace that enables venues to communicate directly with potential customers

Value Propositions

More concisely and accurately inform people which venues are best for their needs

Venues: additional sales channel & marketing avenue, analytics will enable venues to better understand customers and serve them

Users: One stop shop for users which provides crowd information, venue information, reviews, uber transport options, and merchandise purchase opportunities and deals.

Customer Relationships

Engagement based on customer desire for optimal venue information

Very limited requirements from a support perspective

Customer relationship for each sub sector of product offering should be different

Most efficient call to action is social adoption amongst friends and peers

Customer Segments

We have broadened our customer segment as we have widened our target market and demo.

Our product has a much wider application and customers will be self segmented depending on their specific requirement

We need to narrow down to a core following who find the greatest value as an initial hook – nightlife

We have segmented the bar/club market into 3 segments: Undergraduate and graduate students/ white collar professionals / creative professional

Key Resources

Publically available map, geographic, and venue information

User location data Active input from both

users and venue staff

Channels

Distribute product through a smartphone app

Distribute the product through an online web offering in addition

Cost Structure

Upfront development of UI/UX Collection of traffic and occupancy data. Storage data costs. Google API Key. Marketing to acquire users Scaling product and processes to support growing user base Headcount for technical and sales team

Revenue Streams

Online marketplace between users and venues – commission model – taking % of transaction fee

Advertisements in-app Sale of data to SMBs and financial firms

Museums

Retail Shops

Grocery Stores

Restaurants

Bars and Clubs

HotSpot – Identifying Our Focus Areas

HotSpotis a tool for your life

Through interviews, we have identified bars and clubs as the most

relevant and underserved venues for measuring crowd size

But WHO are our target customers at bars and clubs?

Untested

Untested

HotSpot – Customer Segments and Product / Market Fit

In the bar and club venue category, we have identified three target customer segmentsC

usto

mer

Seg

men

tVa

lue

Pro

posi

tion

Undergradand GradStudents

White Collar YoungProfessionals

CreativeYoungProfessionals

Students with active social lives and excitement to experience new places in the city Age 18-29 Limited disposable income Low loyalty to specific venues In search of the right vibe

Professionals with high stress jobs and a “work hard, play hard” attitude Age 22-28 High disposable income Willingness to spend for the

right thing

Professionals with highly creative jobs in fashion, marketing, and media Age 18-26 Medium disposable income Goal to find trendy,

understated venues

Identify the right place based on: Crowd Size – Crowded but not

overwhelming Price – $, $$ Location – Near campus Vibe – Beer bar, dive bar

Identify the right place based on: Crowd Size – Hottest spots in

the city, packed or exclusive Price – $$$, $$$$ Location – Trendiest hoods Vibe – Night clubs, craft

cocktail bars

Identify the right place based on: Crowd Size – Medium to large

crowd Price – $$, $$$ Location – Hipster hoods Vibe – Alternative longue,

dive bar with taxidermy

Day 4

HotSpot – Business Model Canvas – Day 4 Key Partners

Venues – we plan to provide information for a wide range of venues, each with their own unique information which will be valuable to different customer segments.

Venues – if we create a marketplace in which they are the “suppliers” our app will provide the platform for direct sales / marketing efforts.

Google / other data providers – to obtain historic and real-time location information and occupancy levels

Hardware providers – for tracking occupancy and crowd information

Key Activities

Offer an application, which allows people to see how busy venues are (either historically at a given time or in real-time) and provide useful information about such venues.

Provide a marketplace that enables venues to communicate directly with potential customers

Provide unique in-app offerings which vary according to venue type

Value Propositions

More concisely and accurately inform people which venues are best for their needs

Venues: additional sales channel & marketing avenue, analytics will enable venues to better understand customers and serve them

Users: One stop shop for users which provides crowd information, venue information, reviews, uber transport options, and merchandise purchase opportunities , deals

For bars / clubs – incorporate new core value propositions for this segment: HotSpot Recommends, In-App Specials, Real time Picture Feeds

Customer Relationships

Engagement based on customer desire for optimal venue information

Very limited requirements from a support perspective

Customer relationship for each sub sector of product offering should be different

Most efficient call to action is social adoption amongst friends and peers

Customer Segments

Our product has a much wider application and customers will be self segmented depending on their specific requirement

Initial focus: core following who find the greatest value in nightlife

We have segmented the bar/club market into 3 2 segments: Undergraduate / graduate students and white collar professionals / creative professional working young professionals

Key Resources

Publically available map, geographic, and venue information

User location data Active input from both

users and venue staff

Channels

Distribute product through a smartphone app

Distribute the product through an online web offering in addition

Cost Structure

Upfront development of UI/UX Collection of traffic and occupancy data. Storage data costs. Google API Key. Marketing to acquire users Scaling product and processes to support growing user base Headcount for technical and sales team

Revenue Streams

Online marketplace between users and venues – commission model – taking % of transaction fee

Advertisements in-app Sale of data to SMBs and financial firms

HotSpot – Channels and Get StrategyD

istri

butio

n C

hann

els Previous Hypothesis: Mobile App Only Revised Hypothesis: Mobile App and Web

People care most about making crowd-sized based decisions on the go; to do this, they will use a mobile app

Users will plan ahead and use computers50% of mobile Yelp searches happen through mobile web, not app

Get

Stra

tegy

Deeply penetrate single geography – New York City Leverage existing networks

across students and working professionals

Create referral incentives CAC: <$.50

Incentivize social evangelists across global urban locations Utilize existing MBA and

personal networks Create referral incentives with

multi-level marketing structure CAC: <$.25

Target users via social media (e.g. Instagram, Facebook) Use data attributes to target

high likelihood adaptors CAC: <$1.75

+

Untested Untested

HotSpot – Revenue Model

1. Fee for In-App Transactions 2. Sale of Analysis from Data

3. Revenue Share with Partners 4. Marketing and Promotion Services

Charge a percentage of in-app revenue generated by business posting geo-based offers to HotSpot users

Take revenue share of the sale of venue tickets, table/bottle service, etc. through partners like Tablelist

Sell customer insights to small and medium sized businesses

Aggregate macro-analysis for sale to hedge funds and investment shops

Charge venues, performing artists, etc. to have their events promoted to HotSpot users

Untested

Day 5

HotSpot – Business Model Canvas – Day 5 Key Partners

Venue types; museums, bars, clubs, restaurants, grocery stores, retail stores

Venues – we plan to provide information for a wide range of venues, each with their own unique information which will be valuable to different customer segments. Our app will provide the platform for direct sales / marketing efforts.

Google / other data providers – to obtain historic and real-time location information and occupancy levels

Key Activities

Offer an app, which allows people to see how busy venues are (either historically at a given time or in real-time) and provide useful info about such venues.

Provide a marketplace that enables venues to communicate directly with potential customers

Provide unique in-app offerings which vary according to venue type

Value Propositions

Users: More concisely and

accurately inform people which venues are busy in real time and provide information and insights about these venues

One stop shop for users which provides crowd information, venue information, reviews, in-app deals, Hotspot Recommends, and optional real time picture Feeds

Venues: Additional sales channel

& marketing avenue Source of data analytics

which will enable venues to better understand customers and serve them

Customer Relationships

Users – Get Strategy: Leverage existing

student + working professionals

Referral incentives Incentivize social

evangelists Social media ads

Venues – Get Strategy: Social media ads In-store visits

CustomerSegments

Our product has a wide application and customers will be self segmented depending on their specific venue selections

Initial focus: core following who find the greatest value in nightlife (bar/club market)

Segmented into Undergrad/grad students and working young professionals

Venue segmented by types: museums, bars, clubs, restaurants, grocery stores, retail stores

Channels

Distribute product through a smartphone app

Distribute the product through an online web offering in addition

Key Resources

Publically available map, geographic, and venue information

User location data Active input from both

users and venue staff Other social API plugins

Cost Structure

Upfront development of UI/UX Data: Collection of traffic and occupancy data., storage data costs, third

party API keys. Marketing to acquire users Scaling product and processes to support growing user base Headcount for technical and sales team

Revenue Streams

Online marketplace between users and venues – commission model – taking % of transaction fee

Advertisements in-app Sale of data to SMBs and financial firms

Venues CustomersKey:

HotSpot – Enabling Data

Using existing data, we built a tool that changes the venue search process

HotSpot – Our MVP

After showcasing our MVP product, 60% of interviewees actioned to download it and 75% of interviewees provided their email addresses to receive updates

Next Steps

HotSpot – Next Steps

Interview Users – To validate evangelist growth strategy and “download now” sentiment Venues – To understand the value HotSpot provides to them Partners – To verify mutually beneficial opportunities with complementary products

PrioritizeFeatures

Based on feedback from users, venues, and partners Factoring in difficulty to introduce to our platform and cost

Iteratively Build Gradually introduce additional features to the UI/UX, verifying customer interest

by using an agile-like methodology Work towards a product that users download and start using in their daily life

Appendix – Experiment Findings

HotSpot – Experiment Results Day 2

Category Subcategory Test P/F Signal Results

Customer Segment

MillennialsAsk across wide demo if problem identified is real

Pass: Millennials confirm problem 30% more than others

Fail – wide interest across multiple demographics

Nightlife interestsRank venues where crowd size information is most useful

Pass: Nightlife comes up as #1 in 20 of 30 users

Fail – strong interest in multiple applications: Restaurants, Bars, Grocery Stores

Value Proposition

Crowd size is inconvenience for people at venues (too large, too small)

Rank pain points at venue types

Pass: Crowdedness ranked in top 2 problem for venues 15 of 30 users

Pass – Crowdedness ranked majority as top 2 among 48 users

People gain value from crowd size information

Confirmation of usefulness + to download app + give email info for updates

Pass: 75% acceptance rate by 30 users

Pass – 90% confirmation + email commit rate

Venues find value in incremental sales channels

Interview venues for interest in additional sales channels

Pass: 75% venue owners confirm TBD Subject of later tests

Channel Delivery through mobile app

Customers rank usefulness of mobile app vs. web information

Pass: 2/3 users prefer app

Pass – strong majority mobile app, but additional interest in web-based offering

Revenue

Commission-based model Venue owner interviews Pass: 75% venue

owners say yes TBD Subject of later tests

In-app ads Ask user ads ok to have Pass: 75% of users ok with ads TBD Subject of later tests

HotSpot – Experiment Results Day 3

Category Subcategory Test P/F Signal Results

Crowd size of venue is important decider of

venue choice

All Venues(Grocery stores, Restaurants, Bars/Clubs)

Rank top 3 concerns in a venue

Pass: Crowd size ranked as top 3 concern for majority of users

Pass – highest among bars/clubs + restaurants

Users find enough value in

historical data to

download the app

based on specific venue types

Grocery Store

Will download app solely based on historical data of restaurant crowdedness

Pass: Yes confirmation by 75% of respondents

Fail – No strong interest as grocery store as hook

Restaurants

Will download app solely based on historical data of restaurant crowdedness

Pass: Yes confirmation by 75% of respondents

Pass – Yes, requires more testing on bigger pool

Bars/Clubs

Will download app solely based on historical data of bar/club crowdedness

Pass: Yes confirmation by 75% of respondents

Pass – Yes, requires more testing on bigger pool

We validated the types of venues where crowd size data was wanted

HotSpot – Experiment Results Day 4

Category Subcategory Test P/F Signal Results

Bar and Club

Venues Customer Segments

Undergraduate and Graduate Students

Will download app based on historical data of bar/club crowdedness

Pass: 75% confirmed yes Pass

Additional features will boost download rate

Pass: 75% respondents confirm yes + 2 features wanted by majority

Pass – Live picture feed + In-app drink special

White Collar Young Professional

Will download app based on historical data of bar/club crowdedness

Pass: 75% confirmed yes Pass

Additional features will boost download rate

Pass: 75% respondents confirm yes + 2 features wanted by majority

Pass – In-app drink special + HotSpot recommendations

Creative Young Professionals

Will download app based on historical data of bar/club crowdedness

Pass: 75% confirmed yes Fail – low # surveyed

Additional features will boost download rate

Pass: 75% respondents confirm yes + 2 features wanted by majority

Pass – HotSpot recommendations + In-app drink specials

We aimed to validate “hook” strategies that will drive downloads from target segments

HotSpot – Experiment Results Day 5

Category Subcategory Test P/F Signal Results

Distribution

Channels

Mobile App Only

1) Ask users if they would engage with this offering if only offered on app

2) Comparables – ask people if they would still use Yelp / Foursquare if only available as an app

1) Pass: 75% confirmed yes

2) Pass: 75% respondents confirm yes

1) Fail2) Fail

Mobile App and Web UI

1) Ask people whether they use mobile / web to access offerings which are also offered as an app

2) Ask user preference as to apps / web access

1) Pass: 75% confirmed yes

2) Pass: 75% respondents confirm prefer both

1) Pass2) Pass

Get Strategy

Deeply penetrate single geography – New York City

1) Friends and colleagues will download and test app

2) What incentives would be required for them to spread the word across NYC colleagues and friends

1) Pass: 75% confirm yes2) Qualitative survey

question

1) Pass

2) TBD

Incentivize social evangelists across global urban locations

1) Outreach and gage interest to known evangelists

2) Speak to competitors who have tried similar things

1) Show interest / Have no interest

2) How successful has this been

TBD1) TBD

2) Pass

Target users via social media (e.g. Instagram, Facebook)

1) Run $10 trial run of the social media promotion on Facebook and look at the effect of $10 campaign

1) Our $10 investment attracts users TBD 1) TBD

We aimed to validate distribution channels, get strategies, and revenue models

HotSpot – Experiment Results Day 5

Category Subcategory Test P/F Signal Results

Revenue Models

Fee for In-App Transactions

1) Would customers use In App Transactions

2) Would venues be happy to have additional sales channel + pay fee

1) Pass: 75% confirmed yes2) Pass: 75% respondents confirm

yes

1) Pass2) Pass

Sale of Data Insights

1) Ask SME’s whether there is value in them having crowd information about their venue

2) Rank value of information to venues

3) Find out how much they would be willing to pay for this

1) Pass: 75% confirmed yes2) Less than 3 of 5 fails3) Will be relative to each situation TBD

1) TBD2) TBD3) TBD

Revenue Share with Partners

1) There are other applications which we can partner with to secure additional stream e.g. table list

1) Qualitative confirmation and insights from these products that they are open to such methodologies

TBD 1) TBD

Marketing and Promotion Services

1) Would venues / products see upside in an additional promotion channel

2) Are there any downside to venues we haven't considered

1) Pass: 75% confirmed yes2) Get Insight

1) Pass, but need proof of large user base

2) TBD

We aimed to validate distribution channels, get strategies, and revenue models


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