Date post: | 12-Apr-2017 |
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Small Business & Entrepreneurship |
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The information contained in this document is being provided on a confidential basis to the recipient solely for the purpose of evaluating TheFamily (“TheFamily” or the “Company”). The document is intended for the exclusive use of the persons to whom it is given. By accepting a copy of this document, the recipient agrees, for itself and its related bodies corporate, and each of their directors, officers, employees, agents, representatives and advisers, to maintain the confidentiality of this information. Any reproduction or distribution of this document, in whole or in part, or any disclosure of its contents, or use of any information contained herein for any purpose other than to evaluate an investment in the Company, is prohibited. The information contained in this document or subsequently provided to the recipient whether orally or in writing by, or on behalf of the Company, or any of its respective related bodies corporate, or any of their respective partners, owners, officers, employees, agents, representatives and advisers (the “Parties”) is provided to the recipient on the terms and conditions set out in this notice.
TRANSFORMING USERS INTO CUSTOMERS:
3 CASE STUDIES
USERS -> CUSTOMERS =
PAIN POINT -> NEED -> DEMAND PAIN POINT FOR 1 PERSON
NEED IS PAIN POINT SHARED BY MANY PEOPLE
SOME OF WHOM ARE WILLING TO PAY = DEMAND
FEB 2014 ➔ 15,000 DAU
AUG 2014 ➔ 171,000 DAU
NOV 2014 ➔ 285,000 DAU
FEB 2015 ➔ 500,000 DAU
3,233% Y/Y GROWTH
1. DEFINED MARKET BY IDENTIFYING USER PAIN
2. NAILED PRODUCT EXPERIENCE BY DOING FEW THINGS EXCEPTIONALLY WELL
3. FUELED BOTTOM-UP, WORD-OF-MOUTH GROWTH BY USING FREEMIUM MODEL
STUART BUTTERFIELD SLACK CEO
“And then over the course of 3.5 years working on the game, we got up to about 45 people. And every time one of our
internal communication problems got to the point where we just couldn’t stand it anymore we would spend the minimum
number of minutes addressing that and then move on and slowly iterate. So we didn’t know it at the time and it wasn’t
obvious until [like] a year ago, in this very non self conscious, non speculative way we were designing Slack – but based
on the actual needs that we had as a team.
This is the good news and the bad news. After a couple years we had some insight into why it was successful. The bad news
is that it’s a hard thing to replicate – to be able to actually design something while not actively thinking about it – but it’s definitely the best way. Because I think that one of the biggest
problems that software designers, product managers, entrepreneurs have is the temptation to be really
speculative with what some hypothetical person would want as opposed to something that you know you need.
STUART BUTTERFIELD SLACK CEO
“When we asked the other 70 to 80% what they were using for internal
communication, they said, ‘Nothing.’ But obviously they were using
something. They just weren’t thinking of this as a category of software.”
STUART BUTTERFIELD SLACK CEO
“We’re selling a reduction in information overload, relief from
stress, and a new ability to extract the enormous value of hitherto useless
corporate archives. We’re selling better organizations, better teams. That’s a
good thing for people to buy and it is a much better thing for us to sell in the long run. We will be successful to the extent that we create better teams.”
1. PROBLEM SOLVED FOR USER > WHAT YOUR PRODUCT DOES
2. YOUR PRODUCT > DEFINED CATEGORIES
3. NO GROWTH STRATEGY = NO GROWTH
DANIEL EK, SPOTIFY FOUNDER & CEO
DEFINITION OF AN ENTREPRENEUR
“SOMEONE WHO IS ANNOYED ENOUGH BY A PROBLEM TO WANT TO SOLVE IT.”
SPOTIFY 1. LASER FOCUS ON PRODUCT MARKET FIT
2. FREEMIUM MODEL = VIRAL EFFECTS
3. EXCLUSIVE DEAL WITH FACEBOOK
SPOTIFY “THINK ABOUT WHAT PROBLEM YOU
WANT TO SOLVE AND BE REALLY CRISP ABOUT THAT, ESPECIALLY IF YOU’RE A
TEAM OF PEOPLE... WHAT’S THE ULTIMATE PRODUCT SOLUTION AND THEN RATCHET IT DOWN AND THINK ABOUT THE SHORTEST WAY FROM
POINT A TO POINT B FOR THE USER.”
DANIEL EK’ GROWTH TIPS
1. SAY “NO” MORE OFTEN
2. STATE COMPANY WIDE METRIC GOALS VERY CLEARLY
3. SURROUND YOURSELF WITH A PLAYERS
4. HIRE FAST AND FIRE FAST
INTUIT & MINT PERSONAL FINANCE SOFTWARE
INTUIT FOUNDED IN 1983 BY SCOTT COOK
MARKET CAP : $24 BILLION
MINT FOUNDED IN 2006 BY AARON PATZER
SOLD TO INTUIT FOR $170 MILLION
MINT 2 YEARS AFTER FOUNDING, GREW TO 1.5 MILLION USERS AND WAS
BOUGHT BY INTUIT FOR $170 MILLION
WHY ?
HOW?
MINT VS INTUIT MINT BEAT INTUIT AT ITS OWN GAME
MINT SETUP TIME10 MINUTES VS 1 HOUR FOR QUICKEN
50% OF QUICKEN EXPENSES FELL UNDER “UNCATEGORIZED”
ADVICE IS GENERAL EVERY STARTUP IS UNIQUE
PERSONAL FINANCE MVP
HIGH LEVEL OF TRUST REQUIRED
NO VIRAL EFFECTS BUILT IN - HOW TO GROW?
MINT GO-TO-MARKET FREE PRODUCT
HIGH QUALITY BLOG CONTENT
EMAIL COLLECTION AT END OF EVERY BLOG POST
BLOG FILTER: “WILL THIS GET PEOPLE TALKING & SHARING?”
VIP ACCESS TO USERS WHO POSTED BADGE TO SOCIAL MEDIA
PRESS: 550 INTERVIEWS, 255% INCREASE, 20K SIGNUPS/DAY, CAC < $1
SEO: OPTIMIZED LANDING PAGES FOR PERSONAL FINANCE QUERIES
PAID ADS: TARGETED COMPETITORS’ KEYWORDS
UNDERSTAND YOUR GROWTH CHANNEL 1 X CTR X CONVERSION RATE
CHANNEL 2 X CTR X CONVERSION RATE
CHANNEL 3 X CTR X CONVERSION RATE
CHANNEL 4 X CTR X CONVERSION RATE
CHANNEL 5 X CTR X CONVERSION RATE …
WHAT DID WE LEARN? 1. TALK ABOUT HOW YOUR PRODUCT IMPROVES USERS’ LIVES
2. DON’T LIMIT YOURSELF TO EXISTING MARKETS (BUT NEW = HARD)
3. UNDERSTAND WHAT’S DRIVING YOUR GROWTH
4. PLEASE CUSTOMERS & THEY’LL SAY NICE THINGS ABOUT YOU
5. FOCUS YOUR COMPANY ON GROWING ONE METRIC AT A TIME
6. OBSERVE YOUR CUSTOMERS & ITERATE REGULARLY
THIS IS ALWAYS TRUE, EVEN FOR A $BILLION COMPANY
The information contained in this document is being provided on a confidential basis to the recipient solely for the purpose of evaluating TheFamily (“TheFamily” or the “Company”). The document is intended for the exclusive use of the persons to whom it is given. By accepting a copy of this document, the recipient agrees, for itself and its related bodies corporate, and each of their directors, officers, employees, agents, representatives and advisers, to maintain the confidentiality of this information. Any reproduction or distribution of this document, in whole or in part, or any disclosure of its contents, or use of any information contained herein for any purpose other than to evaluate an investment in the Company, is prohibited. The information contained in this document or subsequently provided to the recipient whether orally or in writing by, or on behalf of the Company, or any of its respective related bodies corporate, or any of their respective partners, owners, officers, employees, agents, representatives and advisers (the “Parties”) is provided to the recipient on the terms and conditions set out in this notice.
QUESTIONS?