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Upwardly mobile
young professionals
making $2-10K of
discretionary online
purchases a year
(excluding travel)
Discover online
goods recommended
by friends at the
lowest possible price
from trusted vendors
FB/TW posts from
users you know
Company blog, FB,
TW accounts
Week 7 Canvas
Affiliate program
SEO/SEM/SM
IE/FF/Chrome App
Stores
FB/TW posts from
cartpop users you
know
Developers
Marketers
Bloggers and Media
targeting customer
segment
Retail marketing
partners
IE/FF/Chrome teams
Affiliate Program
Providers
Affiliate program fees
Licensing
Subscription fees
Ad revenue
AWS Infrastructure
SEM
Eng& Marketing OpEx
Pat the ProfessionalUpwardly mobile, $2-10K discretionary purchases/year (excluding travel)
MVP: Trusted Adviceon products tailored to your needs by people and groups relevant to you.
FB/TW posts from users you know
Company blog, FB, TW accounts
Week 8: Social Shopping
Affiliate program
SEO/SEM/SM
IE/FF/Chrome App Stores
FB/TW posts from cartpop users you know
DevelopersMarketers
Bloggers and Media targeting customer segment
Retail marketing partners
IE/FF/Chrome teams
Affiliate Program Providers
Affiliate program feesLicensingSubscription feesAd revenue
AWS InfrastructureSEMEng& Marketing OpEx
Teaching Team
• You need to review what you did with Personal Libraries and redo as much as possible for Wantio
Mentors
• What experience and expertise does the team bring to this problem?
• What are your unique insights into the problem? What unmet needs that matter (offer the consumer tangible value) are you seeking to fulfill?
• Who else is trying to do this, and what is unique/interesting about their approach, and what is deficient?
• What is the scale? If you win this category, how big is the company?
• Who wins and who loses if you are successful?
Feedback this Week
Customer Segment: Professional-class consumers shopping frequently online
Pat the Professional
Upwardly mobile professional (some Grad Students)Salary: $40,000 – 150,000/yearFinance, Consulting, PR, MarketingFollows fashion/technology trendsSpends $1-15K on discretionary items onlinePurchased online in last 30 days
Demographics• Male/female, aged 18-35• Minimum bachelors from expensive schoolTraits:• Ideas from blogs & shopping websites • Values celebrity trends & friends’ opinions• Wants high ticket items at lowest price• Event-driven shopper—new release or sale
Motivation• Craves new products• Hates tedious work• Identifies as influencer among friends• Fears being cheated online
Behavior• Spends 5 hour+ monthly hearing about products • Shares online and in person about products he
loves
Budget• $2-10K+/year in discretionary online purchases
“The XXX is awesome, I really want one. I know I just bought the YYY, but it’s probably time to upgrade.”
Source: US Bureau of Labor Statistics
~5.9M “Pat the Professionals” in USDrawn from top 1/3 of 17.8M frequent online shoppers17.8M based on 40.2M Professionals (2008 Census) * 0.762 US Internet Penetration (Nielsen 2010Q1) * 0.58 consumers shopping online in last month (Nielsen 2010Q1)
Online Recommendation Market Opportunity (conservative strawman #s)Assuming 10% share, 5% affiliate fees
Top Shoppers (~$7B/year spend): ~ $35M/year
Professional-class frequent shoppers (~$1.8B/year): ~ $9M/year
Other Professional-class shoppers ($0.7B/year): ~3.5M/year
Customer Segment: Top shoppers spend a lot of money
50%+ of monthly spending for Top Shoppers happens online
~$7B spent by Top US Shoppers/yearBased on 918K top shoppers (given top 3% of professionals shopping online) * $7,625/year online spend1
1vetted against $1072 average weekly wage (US Census) * 2.84 weeks salary spent per month (given 51-75%, 75% spend levels) * 0.2 after tax discretionary income ratio
Customer Segment: US distinctly different from rest of world in key areas
Comparison shopping and aggregators less popular in US than in rest of world
US most likely to share positive experiences online vs. rest of world
Books (2009: ~$40B retail, ~$24B wholesale, APA)Head of mobile strategy at major US publisher- Print in massive decline, eBooks exploding, players trapped in “merchandising” mindset
Electronics (2009: $171B, CEA) Entrepreneur with multiple successful affiliate marketing businesses, specializing in electronics - High instances of fraud; affiliate programs monitor partners very
closely, have pricing power
Recreational Boating (2009: $10B, BI)Entrepreneur in recreational boat market- Referrals major influencer of purchase decisions in $10B/year
market- 7M new, 1.3M used boats sold in ‘07, vs. 3.2M new, 1M used
sold in ‘09
Elite Fashion Startup helps consumers share shopping “finds” and facilitate purchase from vendor network
Higher EdCo-Founder of leading GMAT prep site (small business ~150K UVs/M)- 200K GMAT test takers, 10-15x considering (GMAC)
Paid Video ContentHedge fund manager on analysis of Netflix- Can develop strong partner relationships monetizing remnant
inventory
Category Exploration, Research & Interviews / Potential Partners
Recreational Boating
Category Exploration, Research &Interviews / Potential Partners
Recreational Boating Books (2009: ~$40B retail, ~$24B wholesale, APA)Head of mobile strategy at major US publisher- Print in massive decline, eBooks exploding, players trapped in “merchandising” mindset
Electronics (2009: $171B, CEA) Entrepreneur with multiple successful affiliate marketing businesses, specializing in electronics - High instances of fraud; affiliate programs monitor partners very
closely, have pricing power
Recreational Boating (2009: $10B, BI)Entrepreneur in recreational boat market- Referrals major influencer of purchase decisions in $10B/year
market- 7M new, 1.3M used boats sold in ‘07, vs. 3.2M new, 1M used
sold in ‘09
Elite Fashion Startup helps consumers share shopping “finds” and facilitate purchase from vendor network
Higher EdCo-Founder of leading GMAT prep site (small business ~150K UVs/M)- 200K GMAT test takers, 10-15x considering (GMAC)
Paid Video ContentHedge fund manager on analysis of Netflix- Can develop strong partner relationships monetizing remnant
inventory
Phone call with founder Joe Einhorn
• 10,000 users, 100 million objects in database
• Vision: Wherever you are on the web or in the world, if you see something you like you can express it & learn more, Target user: anyone who owns / buys
• Most content is given free to user (without sign up), Avg unique visitor views 20 pages, priority is to get users viewing & publishing on the site
• No formal user acquisition process, want to keep user visits organic
• Early adopters / active users rewarded with titles, ex: editor in chief, art director
• Partners:
– 1. Media companies, journalists who discover cool things
– 2. Stores that sell the same or similar items
TheFancy.com : People connected via Objects
11%
73%
8%
8%
Average Salary Range
0 - 20,000
20 - 40,000
40 - 60,000
60 - 80,000
80 - 100,000
100,000+
Finance, Consulting
11%
Law73%
Engineering8%
Education8%
Profession or Field of Study
Male36%
Female64%
Gender
22-2558%
26-3036%
30-353%
35-403%
Age
Customer Segment: Stanford Survey Results (n=40)
Less than Once a Month
27%
Once a Month
30%
2-3 Times a Month
24%
Once a Week
8%
2-3 times/ wk
11%
How Often Do You Make Purchases Online?
389 395 320 242136
1172
220
Total Average = $2,900
Average Amount Spent in Past Year
Customer Segment: Stanford Survey Results (n=40)
People spend more than they think
Which Features Are Most Useful When Shopping Online?
What Are Your Biggest Concerns With Online Shopping?
3428
12 136
111
Why Do You Shop Online?
27
6 8 10 103
Browsing shopping websites
Blogs or trend sites
Magazines Friends & family
See in person
Other
Where Do You Find Products to Buy?
Customer Segment: Stanford Survey Results (n=40)
People love a discount, but aren’t price conscious
Customer Segment: Focus on young & affluent
Young (18-34), affluent women ($50K-80K+) Young (18-34), affluent men ($50K-80K+)
BENCHMARK: Gawker Media crowd (~19M UV/month)
Pat the ProfessionalUpwardly mobile, $2-10K discretionary purchases/year (excluding travel)
MVP: Trusted Adviceon products tailored to your needs by people and groups relevant to you.
FB/TW posts from users you know
Company blog, FB, TW accounts
Week 8: Social Shopping
Affiliate program
SEO/SEM/SM
IE/FF/Chrome App Stores
FB/TW posts from cartpop users you know
DevelopersMarketers
Bloggers and Media targeting customer segment
Retail marketing partners
IE/FF/Chrome teams
Affiliate Program Providers
Affiliate program feesLicensingSubscription feesAd revenue
AWS InfrastructureSEMEng& Marketing OpEx
Shared Wishlist
Shared Purchases
Recommendations
Q&A
MBA students/prospects
Shopping Enthusiasts
People Preference
Pat the Professional
…
…
Books
Electronics
Purchase
…
Favorite Vendors
…
Value Proposition: How to create “Trusted Advice”?Ex
per
imen
tsH
ypo
thes
es
Self-selected people and groups join for shared advice relevant to their “micro-communities”
INCENTIVES: access (“insider” community), reciprocation (dialog, Q&A)
FIRST COMMUNITIES: MBAs, Stanford, shopping bloggers
Expression of preference (tweet, FB, blog, Q&A, etc.)
INCENTIVES: reputation (likes/ratings, associations), ease of use (tools & templates)
FIRST FEATURES: “Click to blog” on products; auto-product research
Buy relevant items quickly & easily from vetted vendors
INCENTIVES: auto-analysis (price, tax & shipping comparison), implicit endorsement (insiders “connected” with product)
FIRST PRODUCTS: MBA Admission Books
Experiment 1: Community Recommendations (MBAs + Admission Books)
Expanding APRU (strawman numbers)
Developing Community
Pat the ProfessionalUpwardly mobile, $2-10K discretionary purchases/year (excluding travel)
MVP: Trusted Adviceon products tailored to your needs by people and groups relevant to you.
FB/TW posts from users you know
Company blog, FB, TW accounts
Affiliate program
SEO/SEM/SM
IE/FF/Chrome App Stores
FB/TW posts from cartpop users you know
DevelopersMarketers
Bloggers and Media targeting customer segment
Retail marketing partners
IE/FF/Chrome teams
Affiliate Program Providers
Affiliate program feesLicensingSubscription feesAd revenue
AWS InfrastructureSEMEng& Marketing OpEx
?
What’s Next
Takeaways
• What experience and expertise does the team bring to this problem?– Large scale perspective - Former Windows Live manager experienced running multi-million user services– Rapid development - Engineer experienced in rapid development with open source community & web tools– Early stage experience – Serial web entrepreneur in niche lead gen business, 100K+ high quality UVs/month– Data-driven design - Seasoned project manager focused on high speed research, analytics and usability
• What are your unique insights into the problem?
• What unmet needs that matter (offer the consumer tangible value) are you seeking to fulfill?
• Who else is trying to do this, and what is unique/interesting about their approach, and what is deficient?
• What is the scale? If you win this category, how big is the company?
• Who wins and who loses if you are successful?
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