Team Dynamo Final Presentation Interviews: 252 Partner: 10 Survey: 76 Al Hassan Hleileh MBA 2 MA in POL ECON SOC H Al Hassan Hleileh MBA 2 MA in POL ECON SOC H Elika Mahdavi MS&E MS BS in Indus.Eng. Elika Mahdavi MS&E MS BS in Indus.Eng. Megh Gautam MS&E MS BTech in IT Megh Gautam MS&E MS BTech in IT Hung Le MS&E MS BS in EE/CS Hung Le MS&E MS BS in EE/CS PICTURE THE TEAM TABLE OF CONTENTS 1.Overview of our idea evolution 2.Our journey from week 1 to week 8 3.Current Idea Archetype Product vision Partner Channel & Demand Creation Competitive Landscape Market Sizing 4.Lesson learned and what next Travel booking portal for Middle Easterns Social travel planning Ex-pat travel portal to Middle East Travel inspiration - Social platform that nudges people to inspire and enrich their life Safe travel portal for US travelers to M.E. 4 IDEA EVOLUTION THROUGH PIVOT 7878 Nudge to enrich life Focus Customer Insights CompetitionMarket size Customer Insights Market size Research Scalability Market size Travel booking portal for Middle Easterns 1 Interviews: 20 Market understanding Best in class product Relationship with partners Human Capital Hotels Airlines Events (Festivals) Car rentals Promotion companies Deal listings State Tourism Travel agents Conventions (CES) Business Schools (Study groups) Product Development A/B testing Relationship with hotels; airlines; car rentals Sourcing deals Acquisition, retain customers Web and mail Advertising Social Media Word of Mouth Referrals Customer call centers Magazines Lowest price Best inventory Convenient Experiential UI Social Validation Create a Community Multiple options Best Actionable deals Relevant locations Trusted relationships Successful partnerships Brand awareness/ identification Pilots Cross pollination Events (Parties!) Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Young families Best education for kids Cultural experience Trendy destinations Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs Percentage of hotel/package (s) Advertising revenues Event of the month Exclusive partnership with events WEEK 1 MAKE MY DREAM New Remain Remove Week 1 Middle East focused platform Offer a booking platform with group discounts and flash-sales Ramp up strategy through social conversations Preserve memories of travel through photo sharing and quotes Middle East focused Travel booking portal Market understanding Best in class product Relationship with partners Human Capital Hotels Airlines Events (Festivals) Car rentals Promotion companies Deal listings State Tourism Travel agents Conventions (CES) Business Schools (Study groups) Product Development A/B testing Relationship with hotels; airlines; car rentals Sourcing deals Acquisition, retain customers Web and mail Advertising Social Media Word of Mouth Referrals Customer call centers Magazines Lowest price Best inventory Convenient Experiential UI Social Validation Create a Community Multiple options Best Actionable deals Relevant locations Trusted relationships Successful partnerships Brand awareness/ identification Pilots Cross pollination Events (Parties!) Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Young families Best education for kids Cultural experience Trendy destinations Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs Percentage of hotel/package (s) Advertising revenues Event of the month Exclusive partnership with events WEEK 1 MAKE MY DREAM New Remain Remove Week 1 Market understanding Best in class product Relationship with partners Human Capital Hotels Airlines Events (Festivals) Car rentals Promotion companies Deal listings State Tourism Travel agents Conventions (CES) Business Schools (Study groups) Product Development A/B testing Relationship with hotels; airlines; car rentals Sourcing deals Acquisition, retain customers Web and mail Advertising Social Media Word of Mouth Referrals Customer call centers Magazines Lowest price Best inventory Convenient Experiential UI Social Validation Create a Community Multiple options Best Actionable deals Relevant locations Trusted relationships Successful partnerships Brand awareness/ identification Pilots Cross pollination Events (Parties!) Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Young families Best education for kids Cultural experience Trendy destinations Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs Percentage of hotel/package (s) Advertising revenues Event of the month Exclusive partnership with events WEEK 1 MAKE MY DREAM New Remain Remove Week 1 Too broad a platform Too many value propositions Lack of focus in value propositions Market understanding Best in class product Relationship with partners Human Capital Hotels Airlines Events (Festivals) Car rentals Promotion companies Deal listings State Tourism Travel agents Conventions (CES) Business Schools (Study groups) Product Development A/B testing Relationship with hotels; airlines; car rentals Sourcing deals Acquisition, retain customers Web and mail Advertising Social Media Word of Mouth Referrals Customer call centers Magazines Lowest price Best inventory Convenient Experiential UI Social Validation Create a Community Multiple options Best Actionable deals Relevant locations Trusted relationships Successful partnerships Brand awareness/ identification Pilots Cross pollination Events (Parties!) Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Young families Best education for kids Cultural experience Trendy destinations Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs Percentage of hotel/package (s) Advertising revenues Event of the month Exclusive partnership with events WEEK 1 MAKE MY DREAM New Remain Remove Week 1 The method we used was a top-down approach We didnt use net numbers (gross) The lesson here is that if we were to do it again we would use bottom up / net figures Market sizing problem Market understanding Best in class product Relationship with partners Human Capital Hotels Airlines Events (Festivals) Car rentals Promotion companies Deal listings State Tourism Travel agents Conventions (CES) Business Schools (Study groups) Product Development A/B testing Relationship with hotels; airlines; car rentals Sourcing deals Acquisition, retain customers Web and mail Advertising Social Media Word of Mouth Referrals Customer call centers Magazines Lowest price Best inventory Convenient Experiential UI Social Validation Create a Community Multiple options Best Actionable deals Relevant locations Trusted relationships Successful partnerships Brand awareness/ identification Pilots Cross pollination Events (Parties!) Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Young families Best education for kids Cultural experience Trendy destinations Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs Percentage of hotel/package (s) Advertising revenues Event of the month Exclusive partnership with events WEEK 1 MAKE MY DREAM New Remain Remove Week 1 We were not focused on a specific customer segment too broad. Our interview base was biased towards our network needed a better sample. Lack of focus in customer segments Market understanding Best in class product Relationship with partners Human Capital Hotels Airlines Events (Festivals) Car rentals Promotion companies Deal listings State Tourism Travel agents Conventions (CES) Business Schools (Study groups) Product Development A/B testing Relationship with hotels; airlines; car rentals Sourcing deals Acquisition, retain customers Web and mail Advertising Social Media Word of Mouth Referrals Customer call centers Magazines Lowest price Best inventory Convenient Experiential UI Social Validation Create a Community Multiple options Best Actionable deals Relevant locations Trusted relationships Successful partnerships Brand awareness/ identification Pilots Cross pollination Events (Parties!) Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Young families Best education for kids Cultural experience Trendy destinations Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs Percentage of hotel/package (s) Advertising revenues Event of the month Exclusive partnership with events WEEK 1 MAKE MY DREAM New Remain Remove Week 1 Focus is crucial be it in your value proposition or in your customer segmentation Market sizing Use bottom up whenever possible Get out of the building in spirit and in action. Avoid bias Key learning Travel booking portal for Middle Easterns Social travel planning 1 Customer focus 2 Interviews: 20 Market understanding Human Capital Relationship with partners Best in class product Social Networks Travel Publications Hotels Business Schools Travel agents Airlines Events Deal listings Car rentals Promotion companies State Tourism Conventions (CES) Customer Acquisition Customer Retention Product Dev Relationship with key partners Sourcing deals Word of Mouth Social Media Web and mail Advertising Referrals Customer call centers Magazines Easy and pleasurable trip planning Best inventory Convenient Experiential UI Lowest price Multiple options Best Actionable deals Relevant locations Create a Community Social Validation Trusted relationships Successful partnerships Events (Parties!) Brand awareness/ identification Pilots Cross pollination Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Young families Best education for kids Cultural experience Trendy destinations Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs Percentage of hotel/package (s) Advertising revenues Event of the month Exclusive partnership with events WEEK 2 SOCIAL TRIP PLANNING New Remain Remove Week 2 Through our mentors, we really dug into our customers insights They were telling us that they didnt just want to go to the middle east They wanted a seamless, social and enjoyable travel experience from A-Z We pivoted to The Middle Easts travel booking portal with a ramp up focused on influential who want easy and pleasurable trip planning Pivot to social travel planning for group traveling Market understanding Human Capital Relationship with partners Best in class product Social Networks Travel Publications Hotels Business Schools Travel agents Airlines Events Deal listings Car rentals Promotion companies State Tourism Conventions (CES) Customer Acquisition Customer Retention Product Dev Relationship with key partners Sourcing deals Word of Mouth Social Media Web and mail Advertising Referrals Customer call centers Magazines Easy and pleasurable trip planning Best inventory Convenient Experiential UI Lowest price Multiple options Best Actionable deals Relevant locations Create a Community Social Validation Trusted relationships Successful partnerships Events (Parties!) Brand awareness/ identification Pilots Cross pollination Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Young families Best education for kids Cultural experience Trendy destinations Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs Percentage of hotel/package (s) Advertising revenues Event of the month Exclusive partnership with events New Remain Remove Week 2 WEEK 2 SOCIAL TRIP PLANNING Market understanding Human Capital Relationship with partners Best in class product Social Networks Travel Publications Hotels Business Schools Travel agents Airlines Events Deal listings Car rentals Promotion companies State Tourism Conventions (CES) Customer Acquisition Customer Retention Product Dev Relationship with key partners Sourcing deals Word of Mouth Social Media Web and mail Advertising Referrals Customer call centers Magazines Easy and pleasurable trip planning Best inventory Convenient Experiential UI Lowest price Multiple options Best Actionable deals Relevant locations Create a Community Social Validation Trusted relationships Successful partnerships Events (Parties!) Brand awareness/ identification Pilots Cross pollination Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Young families Best education for kids Cultural experience Trendy destinations Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs Percentage of hotel/package (s) Advertising revenues Event of the month Exclusive partnership with events WEEK 2 SOCIAL TRIP PLANNING New Remain Remove Week 2 Market understanding Human Capital Relationship with partners Best in class product Social Networks Travel Publications Hotels Business Schools Travel agents Airlines Events Deal listings Car rentals Promotion companies State Tourism Conventions (CES) Customer Acquisition Customer Retention Product Dev Relationship with key partners Sourcing deals Word of Mouth Social Media Web and mail Advertising Referrals Customer call centers Magazines Easy and pleasurable trip planning Best inventory Convenient Experiential UI Lowest price Multiple options Best Actionable deals Relevant locations Create a Community Social Validation Trusted relationships Successful partnerships Events (Parties!) Brand awareness/ identification Pilots Cross pollination Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Young families Best education for kids Cultural experience Trendy destinations Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs Percentage of hotel/package (s) Advertising revenues Event of the month Exclusive partnership with events WEEK 2 SOCIAL TRIP PLANNING New Remain Remove Week 2 When research for potential partners, we learned of several existing competitors with similar product crowded hypercompetitive What was the problem? Market understanding Human Capital Relationship with partners Best in class product Social Networks Travel Publications Hotels Business Schools Travel agents Airlines Events Deal listings Car rentals Promotion companies State Tourism Conventions (CES) Customer Acquisition Customer Retention Product Dev Relationship with key partners Sourcing deals Word of Mouth Social Media Web and mail Advertising Referrals Customer call centers Magazines Easy and pleasurable trip planning Best inventory Convenient Experiential UI Lowest price Multiple options Best Actionable deals Relevant locations Create a Community Social Validation Trusted relationships Successful partnerships Events (Parties!) Brand awareness/ identification Pilots Cross pollination Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Young families Best education for kids Cultural experience Trendy destinations Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs Percentage of hotel/package (s) Advertising revenues Event of the month Exclusive partnership with events WEEK 2 SOCIAL TRIP PLANNING New Remain Remove Week 2 We should have looked at the competitive landscape earlier We should have spoken to industry / domain experts earlier Key learning Social travel planning Ex-pat travel portal to Middle East 23 Competition Travel booking portal for Middle Easterns 1 Interviews: 64 Market understanding Human Capital Relationship with partners Social Networks Hotels Business Schools Travel agents Travel Publications Airlines Events Deal listings Customer Acquisition Customer Retention Product Dev Relationship with key partners Sourcing deals Word of Mouth Social Media Local knowhow and content Easy and pleasurable trip planning Best inventory Trusted relationships Successful partnerships Events (Parties!) Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs WEEK 3 EX-PAT TRAVELING New Remain Remove Week 3 Pivot to Ex-pat Community Travel Portal We pivoted back to the original idea with focus on one customer segment A travel planner for Ex-Pat students who frequently visit the Middle-East & other major cities. We want to capture & publish their travel experience. Market understanding Human Capital Relationship with partners Social Networks Hotels Business Schools Travel agents Travel Publications Airlines Events Deal listings Customer Acquisition Customer Retention Product Dev Relationship with key partners Sourcing deals Word of Mouth Social Media Local knowhow and content Easy and pleasurable trip planning Best inventory Trusted relationships Successful partnerships Events (Parties!) Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs WEEK 3 EX-PAT TRAVELING New Remain Remove Week 3 Market understanding Human Capital Relationship with partners Social Networks Hotels Business Schools Travel agents Travel Publications Airlines Events Deal listings Customer Acquisition Customer Retention Product Dev Relationship with key partners Sourcing deals Word of Mouth Social Media Local knowhow and content Easy and pleasurable trip planning Best inventory Trusted relationships Successful partnerships Events (Parties!) Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs WEEK 3 EX-PAT TRAVELING New Remain Remove Week 3 We interviewed 64 people and found: The market was too small There is little homogeneity in customer needs Too low frequency of travel to justify target market What was the problem? Market understanding Human Capital Relationship with partners Social Networks Hotels Business Schools Travel agents Travel Publications Airlines Events Deal listings Customer Acquisition Customer Retention Product Dev Relationship with key partners Sourcing deals Word of Mouth Social Media Local knowhow and content Easy and pleasurable trip planning Best inventory Trusted relationships Successful partnerships Events (Parties!) Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs WEEK 3 EX-PAT TRAVELING New Remain Remove Week 3 Market sizing is crucial Key learning Ex-pat travel portal to Middle East 3 Safe travel portal for US travelers to M.E. 4 Market size Social travel planning 2 Travel booking portal for Middle Easterns 1 Interviews: 33 Survey: 46 Market understanding Human Capital Relationship with partners Social Networks Alumni Associations Hotels Business Schools Travel agents Travel Publications Airlines Events Deal listings Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Safety proposition Local knowhow and content Community/Group Travel Easy and pleasurable trip planning Best inventory Trusted relationships Successful partnerships Young and the affluent High disposable incomes Willing to explore -MBA Students Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs WEEK 4 US TRAVEL TO Middle East New Remain Remove Week 4 Pivot to US Traveler Portal to Middle East We expanded our market to entire US travel market Platform to facilitate Americans to travel to the Middle-East Market understanding Human Capital Relationship with partners Social Networks Alumni Associations Hotels Business Schools Travel agents Travel Publications Airlines Events Deal listings Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Safety proposition Local knowhow and content Community/Group Travel Easy and pleasurable trip planning Best inventory Trusted relationships Successful partnerships MBA Students Young and the affluent High disposable incomes Willing to explore Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs WEEK 4 US TRAVEL TO Middle East New Remain Remove Week 4 We surveyed 46 people and interview 33 more Young & Affluent Americans traveling to the Middle East need local insight. Well be the trusted source! Young affluent market Market understanding Human Capital Relationship with partners Social Networks Alumni Associations Hotels Business Schools Travel agents Travel Publications Airlines Events Deal listings Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Safety proposition Local knowhow and content Community/Group Travel Easy and pleasurable trip planning Best inventory Trusted relationships Successful partnerships Young and the affluent High disposable incomes Willing to explore -MBA Students Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs WEEK 4 US TRAVEL TO Middle East New Remain Remove Week 4 Market understanding Human Capital Relationship with partners Social Networks Alumni Associations Hotels Business Schools Travel agents Travel Publications Airlines Events Deal listings Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Safety proposition Local knowhow and content Community/Group Travel Easy and pleasurable trip planning Best inventory Trusted relationships Successful partnerships MBA Students Young and the affluent High disposable incomes Willing to explore Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs WEEK 4 US TRAVEL TO Middle East New Remain Remove Week 4 Launched website with full basic booking functionalities Ebtism.com went live Full basic functionalities (login, browse deals and book trips) 4 sourced deals from agencies 42 GSB students booked Exclusive login Deals selection (real sourcing) Value propositionAbility to book trips Market understanding Human Capital Relationship with partners Social Networks Alumni Associations Hotels Business Schools Travel agents Travel Publications Airlines Events Deal listings Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Safety proposition Local knowhow and content Community/Group Travel Easy and pleasurable trip planning Best inventory Trusted relationships Successful partnerships MBA Students Young and the affluent High disposable incomes Willing to explore Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs WEEK 4 US TRAVEL TO Middle East New Remain Remove Week 4 We spoke to Christos Stergiou, founder of truegreece.com (Greece Analogue) 10 years of development $5M idea What was the problem? Market understanding Human Capital Relationship with partners Social Networks Alumni Associations Hotels Business Schools Travel agents Travel Publications Airlines Events Deal listings Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Safety proposition Local knowhow and content Community/Group Travel Easy and pleasurable trip planning Best inventory Trusted relationships Successful partnerships MBA Students Young and the affluent High disposable incomes Willing to explore Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs WEEK 4 US TRAVEL TO Middle East New Remain Remove Week 4 Market size need to be VENTURE SCALE We want to DISRUPT the Travel Space. Lets Re-think the Entire Idea! Key learning Ex-pat travel portal to Middle East 3 Safe travel portal for US travelers to M.E. 4 Social travel planning 2 Travel booking portal for Middle Easterns 1 Social platform that nudges people to travel 5 Market size Interviews: 17 Survey: 10 User data Human Capital Relationship with partners Social Networks Travel Websites Alumni Associations Travel agents Business Schools Hotels Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Enrichment (Travel) Leads Safety proposition Local knowhow and content Community/Group Travel Trusted relationships Successful partnerships Online travelers Travel Websites MBA Students Young and the affluent High disposable incomes Willing to explore Human Capital Product Development Advertising costs Maintaining relationships Refunds Leads Advertising Percentage of booking costs WEEK 5 TRAVEL NUDGE Paying partner side End-user side Remove Week 5 Pivot to travel inspiration We pivot to a brand new market Inspire people to travel more through recommendation Relevant based on social graph and travel history User data Human Capital Relationship with partners Social Networks Travel Websites Alumni Associations Travel agents Business Schools Hotels Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Enrichment (Travel) Leads Safety proposition Local knowhow and content Community/Group Travel Trusted relationships Successful partnerships Online travelers Travel Websites MBA Students Young and the affluent High disposable incomes Willing to explore Human Capital Product Development Advertising costs Maintaining relationships Refunds Leads Advertising Percentage of booking costs WEEK 5 TRAVEL NUDGE Paying partner side End-user side Remove Week 5 Inception of Nudge by looking at the competitive landscape Revised later Revised later User data Human Capital Relationship with partners Social Networks Travel Websites Alumni Associations Travel agents Business Schools Hotels Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Enrichment (Travel) Leads Safety proposition Local knowhow and content Community/Group Travel Trusted relationships Successful partnerships Online travelers Travel Websites MBA Students Young and the affluent High disposable incomes Willing to explore Human Capital Product Development Advertising costs Maintaining relationships Refunds Leads Advertising Percentage of booking costs Paying partner side End-user side Remove Week 5 WEEK 5 TRAVEL NUDGE User data Human Capital Relationship with partners Social Networks Travel Websites Alumni Associations Travel agents Business Schools Hotels Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Enrichment (Travel) Leads Safety proposition Local knowhow and content Community/Group Travel Trusted relationships Successful partnerships Online travelers Travel Websites MBA Students Young and the affluent High disposable incomes Willing to explore Human Capital Product Development Advertising costs Maintaining relationships Refunds Leads Advertising Percentage of booking costs Paying partner side End-user side Remove Week 5 Bottom-up estimation Market = population x nudge frequency x CTR x CPC With leads revenue sharing model, TAM is based on assumptions of nudges frequency and conversion Target market is justifiable with an annual revenue of $267 million with 31% market penetration Sizeable potential market SOM = $267M SAM = $373M TAM = $900M WEEK 5 TRAVEL NUDGE User data Human Capital Relationship with partners Social Networks Travel Websites Alumni Associations Travel agents Business Schools Hotels Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Enrichment (Travel) Leads Safety proposition Local knowhow and content Community/Group Travel Trusted relationships Successful partnerships Online travelers Travel Websites MBA Students Young and the affluent High disposable incomes Willing to explore Human Capital Product Development Advertising costs Maintaining relationships Refunds Leads Advertising Percentage of booking costs Paying partner side End-user side Remove Week 5 Mock up of the product for customer interview WEEK 5 TRAVEL NUDGE Ex-pat travel portal to Middle East 3 Safe travel portal for US travelers to M.E. 4 Social travel planning 2 Travel booking portal for Middle Easterns 1 Travel inspiration - Social platform that nudges people to inspire and enrich their life 5656 Interviews: partners User data Human Capital Relationship with partners Social Networks Travel Websites Customer Acquisition Customer Retention Product Development Relationship with key partners Word of Mouth Social Media Enrichment (Travel) Customer Acquisition Leads Trusted relationships Successful partnerships Online travelers Travel Websites Human Capital Product Development Advertising costs Maintaining relationships Cost per acquisition Leads Advertising WEEK 6 TRAVEL NUDGE Paying partner side End-user side Remove Week 6 User data Human Capital Relationship with partners Social Networks Travel Websites Customer Acquisition Customer Retention Product Development Relationship with key partners Word of Mouth Social Media Enrichment (Travel) Customer Acquisition Leads Trusted relationships Successful partnerships Online travelers Travel Websites Human Capital Product Development Advertising costs Maintaining relationships Cost per acquisition Leads Advertising Paying partner side End-user side Remove Week 6 Partner Reach out to Travelocity (Jim Hornthal) Customer insights differed Technological challenges (e.g. cookies) Revenue share instead of lead generating Reach out to Expedia and Bookingmarkets Confirm revenue share model (5% - 10%) and we even got a standard term WEEK 6 TRAVEL NUDGE User data Human Capital Relationship with partners Social Networks Travel Websites Customer Acquisition Customer Retention Product Development Relationship with key partners Word of Mouth Social Media Enrichment (Travel) Customer Acquisition Leads Trusted relationships Successful partnerships Online travelers Travel Websites Human Capital Product Development Advertising costs Maintaining relationships Cost per acquisition Leads Advertising Paying partner side End-user side Remove Week 6 Then we went out of the building to interview 50 people at Stanford Mall What prevents people from traveling is time, not imagination or laziness (seasonal) People dont want to be nudged too often (1 per month) Referrals from close friends more valuable than referrals from strangers The customers value relevance of nudges WEEK 6 TRAVEL NUDGE Ex-pat travel portal to Middle East 3 Safe travel portal for US travelers to M.E. 4 Social travel planning 2 Travel booking portal for Middle Easterns 1 Travel inspiration - Social platform that nudges people to inspire and enrich their life Nudge to enrich life Market size Interviews: 16 User data Human Capital Relationship with partners Social Networks Travel Websites Event Websites University Events Merchants Customer Acquisition Customer Retention Product Development Relationship with key partners Word of Mouth Social Media Enrichment (Activities + Travel) Customer Acquisition Enrichment (Travel) Trusted relationships Successful partnerships Students Graduates Young Families Travel Websites Online travelers Human Capital Product Development Advertising costs Maintaining relationships Cost per acquisition WEEK 7 - NUDGE Week 7 Expand from travel to include activity nudges We expanded our nudges to include activities, events, social reminders than just travels Keep user more engaged with relevant frequent nudges User data Human Capital Relationship with partners Social Networks Travel Websites Event Websites University Events Merchants Customer Acquisition Customer Retention Product Development Relationship with key partners Word of Mouth Social Media Enrichment (Activities + Travel) Customer Acquisition Enrichment (Travel) Trusted relationships Successful partnerships Students Graduates Young Families Travel Websites Online travelers Human Capital Product Development Advertising costs Maintaining relationships Cost per acquisition WEEK 7 - NUDGE Week 7 User data Human Capital Relationship with partners Social Networks Travel Websites Event Websites University Events Merchants Customer Acquisition Customer Retention Product Development Relationship with key partners Word of Mouth Social Media Enrichment (Activities + Travel) Customer Acquisition Enrichment (Travel) Trusted relationships Successful partnerships Students Graduates Young Families Travel Websites Online travelers Human Capital Product Development Advertising costs Maintaining relationships Cost per acquisition WEEK 7 - NUDGE Week 7 We went out of the building to interview 20 people People also want to be nudged in other things than just travel Mobile is the most effective medium to increase engagement The customers want diverse nudges User data Human Capital Relationship with partners Social Networks Travel Websites Event Websites University Events Merchants Customer Acquisition Customer Retention Product Development Relationship with key partners Word of Mouth Social Media Enrichment (Activities + Travel) Customer Acquisition Enrichment (Travel) Trusted relationships Successful partnerships Students Graduates Young Families Travel Websites Online travelers Human Capital Product Development Advertising costs Maintaining relationships Cost per acquisition WEEK 7 - NUDGE Week 7 Ex-pat travel portal to Middle East 3 Safe travel portal for US travelers to M.E. 4 Social travel planning 2 Travel booking portal for Middle Easterns 1 Travel inspiration - Social platform that nudges people to inspire and enrich their life Nudge to enrich life Interviews: 15 Partners: 7 Pilot nudges: 20 YOUTUBE VIDEO User data Human Capital Relationship with partners Social Networks Travel Websites Alumni Associations Travel agents Business Schools Hotels Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Enrichment (Travel) Leads Safety proposition Local knowhow and content Community/Group Travel Trusted relationships Successful partnerships Online travelers Travel Websites MBA Students Young and the affluent High disposable incomes Willing to explore Human Capital Product Development Advertising costs Maintaining relationships Refunds Leads Advertising Percentage of booking costs NUDGE Paying partner side End-user side Remove Week 5 nudge /nj/ verb: to push slightly or gently, especially with the elbow, to get someone's attention, prod someone into action, etc. noun: a slight or gentle push or jog, especially with the elbow. Creating NUDGE User data Human Capital Relationship with partners Social Networks Travel Websites Event Websites University Events Merchants Customer Acquisition Customer Retention Product Development Relationship with key partners Word of Mouth Social Media Enrichment (Activities + Travel) Customer Acquisition Trusted relationships Successful partnerships Students Graduates Young Families Travel Websites Human Capital Product Development Advertising costs Maintaining relationships Cost per acquisition WEEK 8 (FINAL) Paying partner side End-user side Remove Week 8 CUSTOMER ARCHETYPES Ashley Clair Alex Age: 26 Stanford Student Worked in Hollywood Loves Adventures Wants to be nudged relevantly, and inspired! Age: 26 Stanford Student Worked in Hollywood Loves Adventures Wants to be nudged relevantly, and inspired! Age: 28 Works at mobile start-up in San Francisco, originally from Montana Single & dating Plays soccer, runs marathons Likes to cook/host dinner with friends when possible Age: 28 Works at mobile start-up in San Francisco, originally from Montana Single & dating Plays soccer, runs marathons Likes to cook/host dinner with friends when possible Age: 38 Married, 1 child (4 y.o. Clay) Investment professional in New York Volunteer coach for sons hockey team Commutes for work to Manhattan every day Goes out of town to the country for break once/month with his family Age: 38 Married, 1 child (4 y.o. Clay) Investment professional in New York Volunteer coach for sons hockey team Commutes for work to Manhattan every day Goes out of town to the country for break once/month with his family NUDGE TYPES social pushserendipity Nudges from friends as a social push OCCURING EVENTS (REALITY) EVENTS YOU ARE AWARE OF (CONSCIOUS) DESIRE (SUBCONSCIOUS) Discovering nudges Highest conversion rate nudges nudge SIMULATED NUDGE As long as there is transparency between advertisers, the suggestion database and its users, this is an innovative idea. Otherwise, it is a rather subversive tool for consumer and social trends. An interesting concept either way! Love the product idea! This is awesome! I love it!! Just told me to walk the dish today! phenomenal and stunning all in one shot!! We did a pilot to test how many people sign up for nudge 103 people try the product 42 people left(41% signup for service rate) NUDGE: "it's 4 months till you graduate, take your best friend out for a coffee at Coupa, and share some of the good times you have had at GSB" SIMULATED NUDGE We carefully selected people we know to send them tailored nudges We sent tailored nudge to 25 people with 40% conversion rate 10 people actually like the nudge and go 4 people may take the trip in the future 11 people didnt response NUDGE: "Visit the Rodin Sculpture Garden this week and get inspired. Located next to the Cantor Arts Center but accessible at all hours, the Rodin Sculpture Garden houses one of the largest collection of Rodin sculptures RECOMMENDING PLATFORM Computational Matrix factorization Collaborative filtering Computational Matrix factorization Collaborative filtering Crowd-sourced Social nudging Crowd-sourced Social nudging Curated Data mining Social networks Data mining Social networks Geography Context-based Customized user preference Time Past behaviors InputModel Revenue sharing (CPA) PARTNERS Partner Gifts Event + Activities Event + Activities Travel University Events Restaurants Facebook Ad Facebook Fan Page YouTube Video Views 273,380 Unique 120,17382 Clicks 0.030% CTR $0.38 CPC 83 Like Free CPCEngage 46 Website Unique 43062% Bounce rate 2:22min Avg time DEMAND CREATION Week Days COMPETITIVE LANDSCAPE Inspiration Planning Sharing Q&A Flash Deal Community Reminder INCOME STATEMENT Q2 2012Q3 2012Q4 2012Q1 2013Q2 2013Q3 2013Q User growth projection 2,00020,00050,000500,0001,000,0002,000,0004,000,000 Q2 2012Q3 2012Q4 2012Q1 2013Q2 2013Q3 2013Q Revenues AdvertisingN/A Rev. Share *$10,000$100,000$250,000$2,500,000$5,000,000$10,000,000$20,000,000 Total Revenue$10,000$100,000$250,000$2,500,000$5,000,000$10,000,000$20,000,000 Cost of Sales Customer Acquisition$60$600$1,500$15,000$30,000$60,000$120,000 Advertising & Promotions$1,000 $3,000 Total Cost of Sales$1,060$1,600$2,500$18,000$33,000$63,000$123,000 Gross Profit$8,940$98,400$247,500$2,482,000$4,967,000$9,937,000$19,877,000 Expenses Development **$645,000 $940,000$1,115,000$1,290,000$1,465,000 Hosting$1,250 Other Wages ***$100,000 Travel$5,000 $10,000 $15,000 Office + Utilities$12,000 Total Expenses$763,250 $1,063,250$1,238,250$1,418,250$1,593,250 Net Income($754,310)($664,850)($515,750)$1,418,750$3,728,750$8,518,750$18,283,750 California Universities Local beta at Stanford Go global ! Focus is key segmentation is important Market sizing is crucial!!!! There is nothing more important than good team environment and culture Mentorship is hugely important, we couldnt have got where we are without our Mentors help We should be open to pivot even at an earlier stage and trade off: The need to be loyal to our old ideas vs. new innovations that could solve problems based on our customer insights Distilling insights and listening to experiments Looking past ourselves We have a heightened awareness of confirmation bias and try and assuage that in our different experiments LESSON LEARNED WHATS NEXT Incubators CRITICAL SUCCESS MILESTONES NEXT 6 MONTHS Initiate Cohort Analysis Expand Beta testing to entire Stanford Campus Test Gamification iteration and Badges Develop machine learning and curation technology and resources to enable scalability Hire key resources (software developer, data scientist, marketing, business development, social animal) and space THANK YOU Special thanks to the teaching team and our mentors Steve Blank Jon Feiber Ann Miura-Ko Alan Chiu Mentor Ethan Kurzweil Mentor APPENDICES SOM = $500M SAM = $2.5M TAM = $3.5B ANNUAL MARKET SIZE = Penetration Target Population Nudges a week x 50 Conver sion CPA 3/week5%$7200 mil 1 Everyone Student + Young 20% market share 1: US population from 15 55 year olds MARKET SIZING WEBSITE Market understanding Best in class product Relationship with partners Human Capital Hotels Airlines Events (Festivals) Car rentals Promotion companies Deal listings State Tourism Travel agents Conventions (CES) Business Schools (Study groups) Product Development A/B testing Relationship with hotels; airlines; car rentals Sourcing deals Acquisition, retain customers Web and mail Advertising Social Media Word of Mouth Referrals Customer call centers Magazines Lowest price Best inventory Convenient Experiential UI Social Validation Create a Community Multiple options Best Actionable deals Relevant locations Trusted relationships Successful partnerships Brand awareness/ identification Pilots Cross pollination Events (Parties!) Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Young families Best education for kids Cultural experience Trendy destinations Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs Percentage of hotel/package (s) Advertising revenues Event of the month Exclusive partnership with events WEEK 1 New Remain Remove Market understanding Human Capital Relationship with partners Best in class product Social Networks Travel Publications Hotels Business Schools Travel agents Airlines Events Deal listings Car rentals Promotion companies State Tourism Conventions (CES) Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals A/B testing Word of Mouth Social Media Web and mail Advertising Referrals Customer call centers Magazines Easy and pleasurable trip planning Best inventory Convenient Experiential UI Lowest price Multiple options Best Actionable deals Relevant locations Create a Community Social Validation Trusted relationships Successful partnerships Events (Parties!) Brand awareness/ identification Pilots Cross pollination Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Young families Best education for kids Cultural experience Trendy destinations Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs Percentage of hotel/package (s) Advertising revenues Event of the month Exclusive partnership with events WEEK 2 New Remain Remove Market understanding Human Capital Relationship with partners Social Networks Hotels Business Schools Travel agents Travel Publications Airlines Events Deal listings Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Local knowhow and content Easy and pleasurable trip planning Best inventory Trusted relationships Successful partnerships Events (Parties!) Young and the affluent High disposable incomes Willing to explore Young and single Divergent origins Social media savvy Young couples Trendsetting behavior Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs WEEK 3 New Remain Remove Market understanding Human Capital Relationship with partners Social Networks Alumni Associations Hotels Business Schools Travel agents Travel Publications Airlines Events Deal listings Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Safety proposition Local knowhow and content Community/Group Travel Easy and pleasurable trip planning Best inventory Trusted relationships Successful partnerships MBA Students Young and the affluent High disposable incomes Willing to explore Human Capital Product Development Advertising costs Maintaining relationships Refunds Percentage of booking costs WEEK 4 New Remain Remove User data Human Capital Relationship with partners Social Networks Travel Websites Alumni Associations Travel agents Business Schools Hotels Customer Acquisition Customer Retention Product Development Relationship with key partners Sourcing deals Word of Mouth Social Media Enrichment (Travel) Leads Safety proposition Local knowhow and content Community/Group Travel Trusted relationships Successful partnerships Online travelers Travel Websites MBA Students Young and the affluent High disposable incomes Willing to explore Human Capital Product Development Advertising costs Maintaining relationships Refunds Leads Advertising Percentage of booking costs WEEK 5 Paying partner side End-user side Remove User data Human Capital Relationship with partners Social Networks Travel Websites Customer Acquisition Customer Retention Product Development Relationship with key partners Word of Mouth Social Media Enrichment (Travel) Customer Acquisition Leads Trusted relationships Successful partnerships Online travelers Travel Websites Human Capital Product Development Advertising costs Maintaining relationships Cost per acquisition Leads Advertising WEEK 6 Paying partner side End-user side Remove User data Human Capital Relationship with partners Social Networks Travel Websites Event Websites University Events Merchants Customer Acquisition Customer Retention Product Development Relationship with key partners Word of Mouth Social Media Enrichment (Activities + Travel) Customer Acquisition Enrichment (Travel) Trusted relationships Successful partnerships Students Graduates Young Families Travel Websites Online travelers Human Capital Product Development Advertising costs Maintaining relationships Cost per acquisition WEEK 7 Paying partner side End-user side Remove User data Human Capital Relationship with partners Social Networks Travel Websites Event Websites University Events Merchants Customer Acquisition Customer Retention Product Development Relationship with key partners Word of Mouth Social Media Enrichment (Activities + Travel) Customer Acquisition Trusted relationships Successful partnerships Students Graduates Young Families Travel Websites Human Capital Product Development Advertising costs Maintaining relationships Cost per acquisition WEEK 8 (FINAL) Paying partner side End-user side Remove