value proposition – case – utest
DESCRIPTION
This case study offers insight into how uTest developed its value proposition and successfully addressed the gain/pain ratio. This is part of the Startup Secrets focus on Value Proposition development. For more information on this and other Startup Secrets focus areas, visit http://www.startupsecrets.comTRANSCRIPT
Harvard innovation lab : Michael J Skok : Startup Secrets : Value PropositionHi @mjskok
1
STARTUP SECRETS
MICHAEL J SKOK
An insider’s guide to unfair competitive advantage
Hi Harvard innovation lab
Building a Compelling Value Proposition
twitter: @mjskok mjskok.com
North Bridge Venture Partners
Case Example: uTest
Harvard innovation lab : Michael J Skok : Startup Secrets : Value PropositionHi @mjskok
2
Value Proposition Template
• For (target customers) • Who are dissatisfied with (the current
alternative) • Our product is a (new product) • That provides (key problem-solving
capability)• Unlike (the product alternative)
Harvard innovation lab : Michael J Skok : Startup Secrets : Value PropositionHi @mjskok
3
uTest
• For companies with web or mobile apps
• Who are dissatisfied with apps that work as expected in the QA lab, but not in the hands of end users
• Our in-the-wild testing
• Enables them to test their apps under real-world conditions
• Unlike outsourced testing, which merely moves the QA lab to a cheaper part of the world, but doesn’t actually improve app quality
3
Harvard innovation lab : Michael J Skok : Startup Secrets : Value PropositionHi @mjskok
4
Gain/Pain ratio• Revenue • Cost savings• Time• People• Competitive advantage• Reputation• Etc..
• Inertia• Switching costs?• Default = do
nothing• Alternatives?• Good enough =
good enough!• RISK on a startup
• Find (See)• Try• Buy• Implement• Deploy• Own – eg TCO
Inertia,RISK
Gain
Pain
>10
|
Before & After
Before: Test In The Lab & Hope
Testing inside the lab is vital. But today’s web & mobile apps require a new approach to augment lab testing: in-the-wild testing
After: Test Where Your Users Are
|
• Gain from uTest:– Scale infinitely and immediately
- From 3 testers, to 30, to 300, and back to 0– Lower total cost of testing
- EG: SMBs - unlimited testing for ½ the cost of one FTE– Test under real-world conditions
- Live testers, real devices, imperfect conditions… in-the-wild
• Pain from uTest:– More testing reports, creating more work
- Takes time to re-produce, vet and rate 50+ bugs– More collaboration, creating more oversight
- Coordination between in-house & crowd testers
• Goal: – Maximize in-the-wild testing, while minimizing overhead
uTest: Gain vs. Pain
6
| 7
• Tough to quantify precisely, but here’s what we’ve learned
Gain vs. Pain Ratio
Gain Pain
Cost Savings: 10X
Lower Escape Rate by 75%
Make Testing Mirror User Base
Launch Confidence
Higher Quality Apps
vs.Increased Overhead
5:1 on cost basis
20:1 on cost + value basis
| 8
• Test latest version of Google Chrome across 300 highest trafficked URLs on the web
Traditional Outsourcing vs. uTest
Testers 8 Testers 30
Hours / Tester 40 Hours / Tester 10
# of Days 5 # of Days 2
# of URLs Tested 300 # of URLs Tested 300
# of Discovered Issues
19 # of Discovered Issues
129
Price $15,000 Price $10,000
Price-per-Issue $789 Price-per-Issue $78
Sample Customer ROI
Harvard innovation lab : Michael J Skok : Startup Secrets : Value PropositionHi @mjskok
9
START UP SECRETS
MICHAEL J SKOK
An insider’s guide to unfair competitive advantage
Hi Harvard innovation lab
Building a Compelling Value Proposition
mjskok.com twitter: @mjskok
North Bridge Venture Partners
Case Example: uTest