20THIS WEEK
105TO DATE
INTERVIEWS:
Evoke Team
Hustler / Picker / SMEBackground:• Consulting• Ethnography
Hustler / DesignerBackground:• Enterprise Software
Sales• Product Marketing
Hustler / SMEBackground:• Consulting• Market Research
HackerBackground:• Software Engineer – mobile
video• Product Design
HackerBackground:• Software Engineer -
web• Product Design
Mobile+web research management system that enables researchers, product owners entrepreneurs to save time & money and learn faster as they collect, manage, analyze and share qualitative research media (such as video recordings of interviews, observations, and product testing)
DiscoverX
Initial Idea
The problemCollecting, analyzing, and sharing qualitative research data is time consuming, cumbersome, expensive, and full of redundant effort.
The solutionGet the whole process under one roof and searchable. Create central hub for all qualitative data. Build tools that facilitate the collection of data as well as the analysis and sharing of data. Organizations would save time and money while also being able to compound learning and develop deeper insight into consumer motivations.
Hub+
Market for Qualitative Research
Assumptions25bn on market research in US
7 billion on qualitative; 20% of that on tech and support
+time savingSource: Ibis
Assumptions50% of qualitative research is
being done in houseSource: Greenbook
Assumptions10% SOM
Product-Market Fit
Reaching Consumer
s
Building the
Business
Business Model: Week 1Key partnerships
Key activities Value propositions
Customer relationships
Customer segments
Key resources Channels
Cost structure Revenue streams
Design Consultancies
Sales force
Consumer Insights teams – B2C companies
Entrepreneurs
Product Development teams
User Experience Researchers
Research firms
Web sales
App Stores
Value driven business model
SG&A
Software development
Storage, bandwidth, server fees
Universities: dschools, bschools, social sciences
Voice to text companies
Gates Foundation
Software Development
Customer Acquisition
UX Design
Data Sciences
IP: Data architecture & Mining
Data analytics domain experts
Venture funding
Research Expertise
Software developers
Subscription or freemium for entrepreneurs
Service fee for research tools
Service fee for sense-making tools
Service fee for aggregate data set
Online communities
Direct relationship
FAQ or help pages / self service
Set of digital customer discovery tool
Streamline collection and analysis of qualitative data
Delivers better research outcomes
Derive better insights
Ladder Up – capture why?
Access to big qualitative data set
Draw insights form past studies
Companies with access to interview subjects
What We Did
42 interviews Startups & mature organizations across multiple industries
• CGP• Retail• Consumer technology• Market research• Legal services
Wireframe MVP
Manage & condense
Analyze & derive insights
Share
Video montage
Upload
Collect & tag research media
What We Learned: Corporate
Organization
Develop new
products
Design Packagin
g
Test Ad Copy
Brandrepositio
nrevitalize
Product Placeme
nt
Test UI
Jobs
Boutique Research
Firms
Independent researchers
Qualitative research firms
Ad Agencies
Brand Agencies
Research facilities
Focus group moderators
In-house researchers
ProvidersAn ethnographic study of 8 people costs minimum of $50K
Video has a 4:1 processing to record length ratio
What We Learned: Corporate
Organization
Develop new
products
Design Packagin
g
Test Ad Copy
Brandrepositio
nrevitalize
Product Placeme
nt
Test UI
Jobs
Boutique Research
Firms
Independent researchers
Qualitative research firms
Ad Agencies
Brand Agencies
Research facilities
Focus group moderators
In-house researchers
ProvidersAn ethnographic study of 8 people costs minimum of $50K
Video has a 4:1 processing to record length ratio
75% done in the lab with existing solutions
Proprietary methods are strategic advantage for external firms
Researchers unwilling to change habits
Video is used in minority of cases
Not a burning need
What We Learned: Legal
Managing
PartnersEconomic
Buyers
AdminsDecision Makers & Influencer
s
Junior PartnersDecision makers $ Influencer
s
Attorneys &
ClientsUsers
CourtsSaboteur
s
Real-time deposition software
Trial director software
Court reporting agencies
DiscoverX
Barkley Court Reporters records over 800 hours of video daily
Depositions
What We Learned: Legal
Managing
PartnersEconomic
Buyers
AdminsDecision Makers & Influencer
s
Junior PartnersDecision makers $ Influencer
s
Attorneys &
ClientsUsers
CourtsSaboteur
s
Real-time deposition software
Trial director software
Court reporting agencies
DiscoverX
Barkley Court Reporters records over 800 hours of video dailyAttorneys are late adopters
2 year sales cycle
Would have to integrate with incumbent’s solutions
Only incremental value to add
No burning need
Depositions
What We Learned: Entrepreneurs
What we thought:They’re like us. They need to talk to customers and keep their whole team on the same page. We can help.
The reality: Only seasoned entrepreneurs or those trained in lean startup methods see the need to do research. Of those, few feel comfortable recording video. And they don’t have any $.
What We Learned: Entrepreneurs
What we thought:They’re like us. They need to talk to customers and keep their whole team on the same page. We can help.
The reality: Only seasoned entrepreneurs or those trained in lean startup methods see the need to do research. Of those, few feel comfortable recording video. And they don’t have any $.
Hard to reach+ No burning need+ $ Not our customer
What We Learned: Signal in the Noise
“I might use this in my work, but where I really want it is at home filming my kids. I take a lot of video and can’t find anything. I would pay good money for a solution there.”
What We Did
In personGot out of the building and spoke with 50+ parents, grandparents, and children.
MVPDeveloped a working iPhone app and showed it to parents.
OnlineLaunched a website, drove traffic to it and A/B tested various value propositions.
SurveysReached 200 parents to find out how often and for what duration they record videos of their kids.
What We Learned: Current Workflow
Parents take photos & video with smartphone
Media is stored on the phone
Media gets loaded to laptop via iTunes
Moments get missed
Phone storage fills up – can’t take video until upload
Hard to find moments after upload
Video editing is intimidating
Parents want easy options to share privately
Whole video too long / boring to share
Can’t find files to share
What We Learned: Evoke Workflow
Capture the moment with the Evoke app
Tag moments as you record
Automatic upload
Easily find exact moments
Easily find exact moments
Create montages with no editing
Share privately
or to social
networks
Sign up for creative projects
Receive reminders & guides on your smartphone
Wireframes & Development
Insights: Parents
Mom at a coffee shop:“I definitely want this! Is it available now? What is it called? What is the company name? Wait…how will I find it?”
Dad with a burning need:“You have to solve this problem for me. I have video everywhere. I can’t find anything. My wife is getting mad at me because I told her we can’t take more video. Please help.”
Insights: Parents
Mom at a coffee shop:“I definitely want this! Is it available now? What is it called? What is the company name? Wait…how will I find it?”
Dad with a burning need:“You have to solve this problem for me. I have video everywhere. I can’t find anything. My wife is getting mad at me because I told her we can’t take more video. Please help.”
Burning need
Pupil dilation
High WTP driven by emotional needs
Potentially long customer lifetime
✔
Market for Family Memoirs
AssumptionsTotal families with
children under 18 x ARPU x 12
Source: Census
AssumptionsTotal families with children
under 18 x 55% smartphone penetration x 90% android/iOS market
share x ARPU x 12Source: Census and Nielsen
Assumptions10% SOM
Pivot
Product-Market Fit
Reaching Consumer
s
Building the
Business
Business Model: Week 6
What We Did
Talked to more customers
Built a websiteRan AdWords & A/B tested• Demand generation
• Revenue & pricing
What We Learned: Acquisition
Moms share what works with other moms, and they
trust these relationships.
Moms trust these blogger for
recommendations.
We are talking to GGMG about
potential partnership.
Most parents we spoke with check
BabyCenter.
SEM: $23.77Free Trial: $
13.86CAC: $37.63
SEM: $23.77Free Trial: $
5.40CAC: $29.17
Acquisition Cost: AWS
Acquisition Cost: Dropbox
What We Learned: Revenue Strategy
Subscription FeeBasicPremiumFamily Plus
Asset SalesMontagesDVD’sPhoto booksComplete timelines
Usage FeesExtra StorageExtra Streaming
One Time Fee
What We Learned: Lifetime ValueWe provide storage: AWSAssumptions:• 5% conversion rate from
pricing test• Percent at each pricing tier:
$9.99 (57%) $14.99
(29%)
$29.99 (14%)
ARPU: $14.27Lifetime: 120 monthsGross margins: 26%CLTV: $431
We use Dropbox storageAssumptions:• Same conversion rate• Two tiers• Same percentage breakdown
(top two tiers combined)
$4.99 (57%)
$9.99 (43%)
ARPU: $7.13Lifetime: 120 monthsGross margins: 75%CLTV: $640
What We Learned: Channel Economics
COGS
$10.61
Acquisition
$1.63
Price = $14.27
Revenue = $12.64
Cost = $12.48
SG&A
R&D
$1.87
Profit
$0.15
Online Monthly Subscription With Storage
Assume month 24 with 86,368 subscribers
What We Learned: Channel Economics
COGS
$1.80
Acquisition
$0.82
Price = $7.13
Revenue = $6.31
Cost = $4.94
SG&A, R&D
$3.14
Profit
$1.37
Online Monthly Subscription Without Storage
Assume month 24 with 45,000 subscribersBreak even at 31,800 subscribers
✔
Product-Market Fit
Reaching Consumer
s
Building the
Business
Business Model: Week 10
What we did
Interviews• Technology Experts• Potential partners• More parents
Technology deep dive• Research • Discussions• Lots of trial runs
Cost & revenue analysis
video
streamingtranscoding
transcodingstreaming
storage
storage
storage
storage
transcoding
video
streaming
encoding
webm
What We Learned: Technology Flow
Evoke Backend Server
Databases
Evoke Frontend Server
Storage services
Transcoding video files
Transcoded video files
Metadata – video mapping
Website Services
Metadata files
Smart phones
Consumer Laptop
What We Learned: Technology Flow
Evoke Backend Server
Databases
Evoke Frontend Server
Transcoding video files
Metadata – video mapping
Website Services
iPhone/Android
Authenticated user videoMp4 format – H.264 encoding + AAC encoding
Transcoding to .mov,.mp4,.ogg container formats
SQLLite,/Mysql
N formats – existing media AWS handles
backup and secure storage
Transcoded video files
Consumer Laptop
What We Learned: Technology Flow
Evoke Backend Server
Databases
Evoke Frontend Server
Transcoding video files
Metadata – video mapping
Website Services
iPhone/Android
Consumer Laptop
Transcoded video files
Authenticated user videoMp4 format – H.264 encoding + AAC encoding
Transcoding to .ogg container format
SQLLite,/Mysql
N formats – existing media
Dropbox handles backup and secure storage
What We Learned: Technology Flow
Evoke Backend Server
Databases
Evoke Frontend Server
Transcoding video files
Metadata – video mapping
Website Services
iPhone/Android
Consumer Laptop
Transcoded video files
Authenticated user videoMp4 format – H.264 encoding + AAC encoding
Transcoding to .ogg container format
SQLLite,/Mysql
N formats – existing media
Dropbox handles backup and secure storage
Transcoding reduced from 3 formats to 1
There’s more…
What We Learned: AWS vs. Dropbox
Transcoding 3 or more formats 1 or 2 formats
Transcoding cost > $3.6 /month /user < $1.8 /month /user
Storage cost $2.26 /month /user 0
Streaming cost $1.83 /month /user 0
Storage backup Increases cost No cost implications
User’s trust in the beginning
Low as Evoke is front end High
User authenticationMultiple layers – investment
heavy for Evoke
Single layer – Dropbox handles a layer of
authentication
At the end of 12 monthsUsers : 8724 (10% growth mom)Upload assumption : 1.5 GB HD/month
Not at this point
Video digitization services
Joint Business Development
Customer acquisition, joint-marketing, co-
branding
Influential Parenting Group
Traffic
Customer acquisition
Secure storage for end consumers
Key Supplier
Customer acquisition, storage platform
Still investigating
What We Learned: Key Partners
Business Model: Current
Summary - Key Learning
• Pick the right team!
• A 30 minute customer conversation –
Priceless!
• Don’t reinvent the wheel
• Prototypes and wireframes go a long way
Weekly Business Models
Key partnerships Key activities Value propositions Customer relationships
Customer segments
Key resources Channels
Cost structure Revenue streams
Design Consultancies
Salesforce
Consumer Insights teams – B2C companies
Entrepreneurs
Product Development teams
User Experience Researchers
Research firms
Web sales
App Stores
Value driven business model
SG&A
Software development
Storage, bandwidth, server fees
Universities: dschools, bschools, social sciences
Voice to text companies
Gates Foundation
Software Development
Customer Acquisition
UX Design
Data Sciences
IP: Data architecture & Mining
Data analytics domain experts
Venture funding
Research Expertise
Software developers
Subscription or freemium for entrepreneurs
Service fee for research tools
Service fee for sense-making tools
Service fee for aggregate data set
Online communities
Direct relationship
FAQ or help pages / self service
Set of digital customer discovery tool
Streamline collection and analysis of qualitative data
Delivers better research outcomes
Derive better insights
Ladder Up – capture why?
Access to big qualitative data set
Draw insights form past studies
Companies with access to interview subjects
Week 1
Week 2
Week 3
Week 4
Week 5
Week 6
Week 7
Week 8
Week 9
Week 10