kasteko final 2013 stanford e245
TRANSCRIPT
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Team Mailmate/Kasteko
INTERVIEWSTotal: 78
Roi ChobadiEmily SteinbergGil ShotanRafael Moreno
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Video
http://www.youtube.com/watch?v=JCaOL6kKwhk&feature=youtu.be
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MailMate
History and Lessons
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Elevator PitchDo you panic after hitting “send”, wondering what typos or cultural faux-pas you’ve made?
Next time, use Mail.Mate, for fast, accurate, personalized email proofreading so you can hit “send” with confidence.
What we had in mind
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MailMate Canvas #1
• Monthly subscription that allows for X proof-read emails per month. Several packages (25, 100, 1000 emails…)
• Premium paid feature for tailored English lessons• Translation services
For proofreaders: - Additional source of
income that is flexible in terms of working hours, location & duration of work
For users:- Communicating
professionally in foreign language
- Removing awkwardness of asking friends to help
- Learning a language in a personal way tailored to user’s specific needs without having to dedicate time and resources for language learning
Proofreaders: - Native English
speaking students or young adults
- Freelance workers (native English speaking) looking for extra cash
- English Teachers /Tutors
Users:- Immigrants living in a
country with local language different than their mother tongue
- People doing business internationally and communicating in a foreign language
- Exchange \ foreign students
- People with Dyslexia or other language challenges
For proofreaders: - Universities -> Students- Schools – English teachers- Online tutors\forums- Online\social ads- Offering money to add friend
For users:- Online\social ads- Language forums- Universities- Companies- Offering refunds to existing
users that add new users
With proofreaders: - Automated sign-up and
transaction process- Online Community- Live Help / Support- Training / Vetting- Online Discussions
With users:- Automated sign-up and
transaction process- Live Help / Support
- R&D resources to develop product
- Marketing resources to reach users and proofreaders
- Community of proofreaders- Support- Biz Dev \ Sales to sell service
to companies- Brand
- Develop seamless, user-friendly simple easy-to-use service for sending proof-read emails for all platforms
- Develop easy tools and software for proofreading
- Process fees- Provide live support- Sign up paying users- Sign up proofreaders
- Payment Processor (PayPal)- English lessons\content
provider- PR/Marketing Firm
• Paying proof-readers• Paying salaries (R&D, Marketing, Support, Management)• Server\Hosting costs• Marketing campaigns• Paying transaction fees (PayPal \ credit card)
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What people want
GREATEST NEED: B2B CORRESPONDENCE(37% of interviewees to-date)
0%
10%
20%
30%
40%
Workplace (B2B)
Recruiting
First intro / Networking
School Application
American Culture
Communication Coach
Personal emails
Important people
Organizing Events \ Emails to groups
CUSTOMER NEED
% O
F TO
TAL R
ESPO
NDE
NTS
First week – 20 interviews – collected data and analyzed it
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Learning Week #1
• We were not “hypothesis” driven in term of customer archetype/segment – we spoke with everyone (immigrants, internationals, students, professionals…)
• The students we spoke with were interested but not passionate about it (those people could be mainstream late adopters, not early adopters)
• Many people mentioned working environment as the main use case – we started thinking about B2B
• Many people mentioned communication and cultural challenges, we started considering these too
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MailMate Class 2 (following week #1)
Pay per email
Email packages, Monthly packages
Premium added for feedback
Employers paying for employees
Proofreaders:
Flexible Income Source
Users:
Proofreading emails
Language Learning
Translation services
Communication coaching
Proofreaders: Native English speaking students /young adults
English Teachers /Tutors
Users:
Adult immigrants in the US
International students in the US
International professionals
Typo-prone emailers
Busy language learners
Companies employing non-native English speakers
Proofreaders: University job boards
Referral program
Online advertising
Users:Online advertising
University Career & International Centers
Proofreaders: Get – Online ads, University job postsGrow – Referral programKeep – Seniority pay rates Users:Get – Free trial, Grow – Referrals,Keep – attractive long term packages
Software development team
Recruiting and training proofreaders
Developing software
Providing quality control
Payment Processor (PayPal)
English tutorials from content providers
Websites for expats to reach potential users
Companies that teach English to foreign employees at companies
Paying proof-readers
Software development
Server\Hosting costs
Paying transaction fees (PayPal \ credit card)
International students in the US
Companies employing non-native English speakers
Translation servicesCommunication
coaching
Employers paying for employees
Companies that teach English for foreign employees at other companies
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WHAT IS MAIL.MATE?
• CURRENT HYPOTHESIS: MECHANICAL TURK SERVICE
We launched our MVP early week #2
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TrafficHere’s the initial
traffic we saw. Mostly through FB and LI
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Launched MVP84 visitors, 72 unique visitors from 10 countries, 97 pageviews, 90% bounce rate4 signed up users, 2 emails proofread
Some numbers and comments from
people reacting to MailMate
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Learning Week #2
• We were not “hypothesis” driven in term of customer archetype/segment – we spoke with everyone (immigrants, internationals, students, professionals…)– This resulted in us ADDING hypothesis and not removing/testing
hypothesis– Also, we added just 1-2 more data points per segment. You can make
any deduction based on 1-2 data points !– We were targeting interviews based on what’s easy for us and not
what makes sense.• People did respond to our FB, LI posts (both friends who
weren’t in the inns, and strangers). People signed up for the service.
• We were OPTIMISTIC, but CONFUSED (aka all over the place).
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Pay per email
Email packages, Monthly packages
Premium added for feedback
Employers paying for employees
Proofreaders:
Flexible Income Source
Users:
Proofreading emails
Language Learning
Communication coaching
Proofreaders: Native English speaking students /young adults
English Teachers /Tutors
Users:
Adult immigrants in the US
International students in the US
International professionals
Typo-prone emailers
Busy language learners
Companies employing non-native English speakers
Foreign freelancers / entrepreneurs living in the US
Proofreaders: University job boards
Referral program
Online advertising
Users:Online advertising
University Career & International Centers
Proofreaders: Get – Online ads, University job postsGrow – Referral programKeep – Seniority pay rates Users:Get – Free trial, Grow – Referrals,Keep – attractive long term packages
Software development team
Recruiting and training proofreaders
Developing software
Providing quality control
Payment Processor (PayPal)
English tutorials from content providers
Websites for expats to reach potential users
Companies that teach English to foreign employees at companies
Paying proof-readers
Software development
Server\Hosting costs
Paying transaction fees (PayPal \ credit card)
Companies employing non-native English speakers
CANVAS: WEEK 3 (FOLLOWING WEEK 2)
Foreign freelancers / entrepreneurs living in the US
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So far…
32 registered users
6 email jobs
1 repeat customer
Some numbers from end of week #3
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Traffic reportSome numbers from week #3. Mind you,
the website is just an email aggregator
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Learning Week #3• A company named Linguatech offers language learning to immigrant
employees in companies in bay area. They focus more on Language Learning (we never went there)
• FB and such companies hire that company– We spoke with head of Linguatech and team leader at FB
• We expected more than 6 emails proofread in 1.5 weeks. Expected more than 32 registered users, and were disappointed. Should we have expected more??– We’ve sent it to very few people (~20-30)– Had allocated $40 for Google ad-words– Posted on our FB walls
• This was the first week we were “focused” on SMB foreign entrepreneurs and independent contractors. – While we were more focused than always, we were still not focused entirely (some
unrelated interviews on the expense of more related interview… it was tough getting to the right people)
– Also, we learned how difficult it was to target people based on non-demographic characteristics
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CANVAS: WEEK 4
Entrepreneur / small business owner immigrants in the U.S.
Entrepreneur / small business owner immigrants in the U.S.
Paid search
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Pivot
Why Pivot:• Passion - Some of us were never really passionate about the
idea, others lost passion in frustration from not moving forward.• Difficulty to target customers – how do you find and interview a
dyslexic person ?? How do you find and interview an immigrant who is a high-end freelancer?
• Mixed reviews from customers. Few very enthusiastic. Some somewhat enthusiastic. Some don’t care
• Mismatch between our expectations for MVP’s results and real results. Also mismatch between our expectations and the effort we put in.
• Out of difficulties moving forward with “right” interviews, and in attempt to re-energize the team we decided to pivot
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Kasteko
History and Lessons
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Elevator Pitch
• Kasteko is an online service that connects prospective college students to current students at the universities they are interested in. It arranges 30 minute video chats to talk about admissions advice, student life, etc.
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Learning #1: Customer SegmentsDomestic International
Graduate
Undergraduate
- Supply is harder to get - Supply is harder to get
- Supply easy- Willingness to pay depends on distance - Have to deal extra decision makers: parents
- Supply easy- High willingness to pay but niche market- Have to deal with extra decision makers: parents
- No extra decision makers
- No extra decision makers
Decided to go with Undergraduate Internationals
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Learning #2: Value PropositionExperience VS Admissions
Decided to go with admissions
- Students mainly would use it to assess their fit to the school. - They need to feel a close human connection to the person who is informing them.- They feel comfortable enough with the current substitutes: FB, relatives, etc.- Many demographics do not care about the fit, just increasing admission chance
Our service is not a morphine painkiller in this arena, more like a nice to have.
- People really care about where they can get in and how to get in.- Would be on the bad side of college admissions offices (not possible partners)- High willingness to pay in the international market
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Decision Process: Where we fit?
Kasteko
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Learning #3: ChannelsDirectly to customers via search:- Targeting via SEO directly to consumers is very
ineffective (0 signups)- Low customer lifetime value
Via partners:- International high schools interested in buying
service in bulk for their students- Easier customer acquisitions and higher customer
lifetime value
Decided to partner with American high schools
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Metrics that Matter
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Metrics that Matter: Domestic / Int’l Schools• 1-Session Price: $20 (market price)• $15,000 / international school• Y1 Breakeven Wage: Not possible• Y3 Breakeven Wage: $4/session ($8/hour)• Stanford student wage ($13/hour): breakeven in Y5
– Minimum efficient scale: 25,463 users (1.08% of eligible applicants)
1 2 3 4 5$0
$20
$40
$60
$80
$100
$120
Average customer acquisition cost
1 2 3 4 5
-$1,000,000
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
5-Year Projection
ANNUAL REVENUE
ANNUAL COSTS
TOTAL PROFIT
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Metrics that Matter: Int’l Market / Int’l Schools• 1-Session Price: $200 (market price)• $30,000 / international school• Y1 Breakeven Wage: $31/session ($62/hour)• 2x current Stanford student wage ($26/hour):
– Minimum efficient scale: 890 users (0.5% of potential)
1 2 3 4 5$0
$100
$200
$300
$400
$500
$600
Average customer acquisition cost
1 2 3 4 5$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
5-Year Projections
ANNUAL REVENUE
ANNUAL COST
TOTAL PROFIT
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Lessons Learned
• Got passion?• Meet often and all together• Interviews:
– “right” v. “easy”– Know how to interpret results
• Pain = business (product/market fit?)