Fingerprint Berkeley 2015
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The document summarizes a startup's journey in developing a mobile app focused on connecting communities passionate about specific activities and products. The startup conducted over 121 interviews and pivoted their concept multiple times based on customer feedback. Their final concept is an app that allows users to save, share, and discover products that define communities they are passionate about through social sharing and e-commerce features.
Fingerprint Berkeley 2015
- 1. Your communities. Your products. Your passions. An app to save, share, and discover the products that define the communities that you are passionate about 121INTERVIEWS AMAR PATEL MBA 2015 OMAR AYOUB MBA 2015 CARMELA AQUINO MBA 2015 CARLOS LASA MIMS 2016
- 2. OUR TEAM Amar Patel Mobile and adtech expertise Strategy consulting experience Omar Ayoub Mobile engineering expertise Google and Microsoft experience Carmela Aquino Product marketing expertise Digital analytics experience Carlos Lasa UX and design expertise CPG brand management experience
- 3. We believe that mobile has the power to make commerce easy.
- 4. 1 To hear the truth, put customers on the spot 2 Don’t try to solve everyone’s problem – focus on a specific, real customer first 3 When in doubt: go very broad for discovery, then very narrow for nailing the fit 4 Don’t overbuild the MVP 5 Pivot ruthlessly, even if it hurts WHAT WE LEARNED IN CLASS
- 5. Market Type Value Proposition Product Type Customers Business Model WEEK 1 10 interviews TODAY 121 interviews Cross-platform Apple Pay for e-commerce merchants App for sharing passions through products Mobile commerce Social commerce Ease of use for payments Fulfillment of emotional needs – belonging and achievement Merchants with mobile apps Consumers who identify with product-centric communities % of transactions Commissions on product sales, advertising fees Horizontal feature Vertical platform
- 6. The Apple Pay for any mobile platform A tool for converting customers through retargeted mobile ads A universal shopping cart An app to save, share, and discover the products that define the communities that you are passionate about WHO ARE WE?
- 7. Payments were not high on merchants’ priority list of concerns PIVOT 1
- 8. …then a tool for converting customers through retargeted mobile ads…While merchants loved the adtech idea, consumers weren’t as excited about ads PIVOT 2
- 9. …then a universal shopping cart…While general consumers liked the app idea, a compelling value proposition was still lacking PIVOT 3
- 10. …to where we are today!Sharing and engaging with communities gives consumers a reason to come back PIVOT 4
- 12. ACTIVE COMMUNITIES Fulfill higher-level emotional needs – belonging and acceptance Have relatively high barriers to entry due to knowledge and gear required Already encourage a culture of sharing with newcomers
- 13. 1/5 of our interviewees were climbers, runners, triathletes $500 amount that an active triathlete can spend per month on gear Interviewees went to trusted friends or experts for product advice, not Amazon Many have interests in multiple activities Newcomers can benefit the most from a community-based service that offers helpful advice
- 14. “With a sport like climbing, where the barriers to entry are high, it can be intimidating to get started. A community like this would help.”
- 15. How the business works…HOW WE ARE DIFFERENT Pinboards for saving images and other media Climbing- specific forum App that allows you to browse and save products Fitness social network using gamification Product-specific, with dynamic price updates and stronger community focus Allows for users to engage with other communities Stronger community focus around shared passions E-commerce is enabled throughout the platform, making gear hunting easy PRODUCT CONCEPT OUR DIFFERENTIATION
- 16. How the business works… Recommend Buy CommissionCustomer Info Advertising Research Share/Keep/Contribute Build & Manage Demand Build & Manage Supply Build & Manage Platform Consumers Merchants Web Products Fingerprint HOW THE BUSINESS WORKS OPERATIONAL FLOW KEY ACTIVITIES
- 17. Revenue Sources 1. Merchants Affiliate referral bonus (7-9%) 2. Advertisers Native ad units for product discovery feed ($2 CPC) 3. Data Management Partners, Demand Side Platforms Audience data for targeting purposes ($20+ CPM) Merchants Sales / BDUsAdvertisers Data Partners 7-9% of Sale $2 CPC $25 CPM User Acquisition (Social Media Ads) Platform Payments In Payments Out 80% 20% % of Sales Forecast We learned that the bulk of revenue would come from sales commissions HOW THE REVENUE MODEL WORKS
- 19. WHAT WE LEARNED ABOUT THE BUSINESS It is scalable We first build for niche verticals, identify the parameters that are specific to these verticals, and make these parameters customizable as we scale The revenue model is defensible Commissions through affiliate programs are an easy first revenue source, and our data becomes more valuable as the platform scales How to work with partners We understand the ecosystem of merchants, advertising companies, and ecommerce vendors, and have built connections with them There are key metrics that matter GMV (gross merchandise value) is more important than advertising spend, and 30-day retention can be more critical than monthly growth for commerce companies We have a differentiated value proposition Our target customers don’t use substitute product-focused platforms today – they see the value of what we’re building, with some even willing to pay for it
- 20. WHY WE ARE NOT PURSUING THE OPPORTUNITY FURTHER We don’t feel we’re the right team to pursue the opportunity You really need to live and breathe the active lifestyle community in order to sell to it We aren’t truly passionate about social networks – it’s an opportunity we stumbled upon
- 21. APPENDIX
- 22. Market Sizing TOTAL AVAILABLE MARKET SERVED AVAILABLE MARKET TARGET MARKET $14.0B 2015 U.S. social commerce market1 $2.8B U.S. social commerce from affiliate channels2 $557.2M U.S. social commerce from affiliate channels in Apparel and Accessories categories3 2015 2016 2017 Growth Rate 43.0% 43.0% 43.0% TAM ($B) 14.0 20.0 28.6 SAM ($B) 2.8 4.0 5.7 Target Market ($B) 0.56 0.79 1.14 1 Forrester, Booz & Co.; 2 VigLink; 3 eMarketer MARKET SIZING
- 23. Competitor Leaf Diagram Funding Raised Acquisition Value $122M $75M $1.3M $35M Public Value of Parent Company (Market Cap) $290M Undisclosed Undisclosed $212.1B $762.5M $43M Undisclosed $14M $176.5B Undisclosed $176.5B $20.5M Seed $2.8M$387.2B Seed $7.5M $979.0M $78.7M $1.5M $34.6M $109.5M Undisclosed Undisclosed fingerprint
- 24. Value Proposition Canvas: CONSUMER Gains 1. Sense of belonging to a community (“I can call myself a climber now”) 2. Social acceptance, validation, and recognition 3. Confidence of making well-informed purchase decisions 4. Sense of coolness and personal improvements VALUE PROPOSITION CUSTOMER SEGMENT Products & Services 1. Community-based feed: a social network to connect and have conversations around products and activities that define the community 2. Easy one-click solution allowing consumers to bookmark products they come across on the social network and online Pain Relievers 1. Prevent not knowing where to start with a new activity 2. Prevent: buying the wrong product and not being a part 3. Prevent: paying too much for a product Customer Jobs 1. Getting closer to their aspirational self 2. Learning about the latest trends with products for an activity - getting an in 3. Making recommendations to others and participate 4. Show off your passion to the world Gain Creators 1. Connect with others who share the same passion for activities and products 2. Receive the right information to actually buy the right products 3. Curate the future you Pains 1. Sense of being lost due to lack of knowledge about gear for the activity 2. Feeling like an outsider for this activity 3. Not having the right products - hence not exploiting their full potential 4. Envious of higher performing peers and paraphernalia 5. Sense of disorganization with keeping tracks of all the products in the life you want
- 25. Active Community Characteristics Newcomer Contributor / Gear Heads Expert CyclistsClimbers Fitness Enthusiasts RunnersSurfers Snowboarders Triathletes Experience Level of Community Members Barriers to Entry for Activity Communities Hikers HIGH MEDIUM LOW Social - Difficult to bridge the gap from being a newcomer to being a part of the community without others - Requires you to work with other people to improve Technical - Requires technical gear to fully participate Social - Often get into this with the help of others who are already active members; but can practice on their own Technical - Requires technical gear to fully participate Social - Can practice on their own Technical - Requires only minimal technical gear to participate ACTIVE COMMUNITY CHARACTERISTICS GREEN – Interviewed, with high need RED – Interviewed, but low need
- 26. Unit Economics Analysis Key Takeaway: Commissions off of purchases are the key Goal: Get users to spend about $35 through our platform to break even on CAC UNIT ECONOMICS ANALYSIS
- 27. Key Activities Build & Manage Demand Build & Manage Supply ● Marketing activities (social media, influencer marketing) to drive app installs ● Drive engagement and active usage through deal pushes ● Incentives & referrals ● Create partnerships with merchants for commissions and product recommendations ● Offer native advertising capabilities Build & Manage Platform ● Build mobile app and web app ● Build robust backend for catalogue ● Bookmarking extension ● Maintain product feeds and scrapers ● Build recommendations engine ● Handle payments and checkout flow Three critical types of activities that feed off each other: KEY ACTIVITIES
- 28. Key Resources & Partners Resources Build & Manage Platform Build & Manage Supply Build & Manage Demand Human Engineers/Designers Biz Dev Partners: Merchants and Affiliate Programs Marketing Manager “Experts” / Influencers Partners: Social Media (FB) and Ad Networks Financial Friends/Family/Angel Friends/Family/Angel Frrends/Family/Angel Physical Offices, computers and devices Partners: PaaS (Azure, GAE) Intellectual Algorithms Native Ads Support & Template Partners: Mobile SSPs Customer Lists and Data Key Activities KEY RESOURCES AND PARTNERS