evoke final 2013 berkeley

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