Connor BoginMBA
Thomas GaubertIEOR MS&E
Troy HodgesEEE
Sam JonesMBA
Pranav NageshIEOR MS&E
Measuring real-time crowd sizes in public places and empowering users to make more informed decisions every time they leave the home
Total Interviews Performed: 119Interviews Since Last Class: 24
HotSpot – Business Model Canvas – Day 1 Key Partners
Venues – we use bouncers/staff as source of data
Venues – we create a marketplace in which they are the “suppliers”
Google / other data providers – to obtain historic and real-time location information and occupancy levels
Hardware providers – for tracking occupancy and crowd information
Key Activities
Offer an application, which allows people to see how busy venues are (either historically at a given time or in real-time)Facilitate better venue decision making in any given cityProvide a marketplace that enables venues to communicate directly with potential customers
Value Propositions
Problem - Right now we have no way of knowing which venues are busy on an aggregated, real-time basis
Solution – We will:
More concisely and accurately inform people which venues are best for their needs
Aggregate the location info of users to enable venues to better understand customers and serve them
Customer Relationships
Engagement based on customer desire for optimal venue information
Very limited requirements from a support perspective
Customer Segments
Generally this has mass-market appeal –we will target the 21-30 demographic
Initial customer segment will working professionals without families between age 24-28
Channels
Distribute product through a smartphone app
Key Resources
Publically available map, geographic, and venue informationUser location data
Cost Structure
Upfront development of UI/UXCollection of traffic and occupancy dataMarketing to acquire usersScaling product and processes to support growing user baseHeadcount for technical and sales team
Revenue Streams
Online marketplace between users and venues – commission model – taking % of transaction feeAdvertisements in-appSale of data to SMBs and financial firms
Over the next five days, we tested hypotheses across the business model canvas by performing 119 interviews
means hypothesis passed
means hypothesis failed
HotSpot – Business Model Canvas – Day 2 Key Partners
Venues – we plan to provide information for a wide range of venues, each with their own unique information which will be valuable to different customer segments.
Venues – if we create a marketplace in which they are the “suppliers” our app will provide the platform for direct sales / marketing efforts.
Google / other data providers – to obtain historic and real-time location information and occupancy levels
Hardware providers – for tracking occupancy and crowd information
Key Activities
Offer an application, which allows people to see how busy venues are (either historically at a given time or in real-time) and provide useful information about such venues.
Provide a marketplace that enables venues to communicate directly with potential customers
Value Propositions
Problem - Right now we have no way of knowing which venues are busy on an aggregated, real-time basis. Solution – We will:
More concisely and accurately inform people which venues are best for their needs
Venues: additional sales channel & marketing avenue, analytics will enable venues to better understand customers and serve them
Users: One stop shop for users which provides crowd information, venue information, reviews, uber transport options, and merchandise purchase opportunities and deals.
Customer Relationships
Engagement based on customer desire for optimal venue information
Very limited requirements from a support perspective
Customer Segments
Generally this has mass-market appeal –we will target the 21-30 demographic
Initial customer segment will working professionals without families between age 24-28
We have broadened our customer segment as we have widened our target market and demographic.
Our product has a much wider application and customers will be self segmented depending on their specific requirement
Channels
Distribute product through a smartphone app
Distribute the product through an online web offering in addition
Key Resources
Publically available map, geographic, and venue information
User location data Active input from both
users and venue staff
Cost Structure
Upfront development of UI/UX Collection of traffic and occupancy data. Storage data costs. Google API Key. Marketing to acquire users Scaling product and processes to support growing user base Headcount for technical and sales team
Revenue Streams
Online marketplace between users and venues – commission model – taking % of transaction fee
Advertisements in-app Sale of data to SMBs and financial firms
HotSpot – Petal Diagram
HotSpot
Social Reviewers
Search
Maps
Reservations
Crowd-sizingSoftware
Crowd-sizingHardware
1
1
2
22 1
1
2
Conducted meeting
Contacted
HotSpot – Market Size
TAM160M
SAM80M
Target Market20M
Total Available Market 200M smartphone users in US in 2016 80% of the US population lives in urban
and suburban areas, and we believe these populations would gain value from using this product
TAM in US market is 160M
Served Available Market 50% of TAM leverages digital tools to
inform public destination decision making
As a reference, Yelp has 80M unique monthly US visitors
SAM in US market is 80M
Target Market Assuming 25% penetration of the SAM
in a 3 year period As a reference, this would mean
achieving 25% of Yelp’s penetration Target Market is 20M
HotSpot – Type of Business
We leverage existing technology, aggregate passive data feeds, and add incremental user generated data inputs
We are building a technology-enabled startup
A wide range of people want to know historical population density in public venues
Users are increasingly interested in this information if it is accurate in real time
Users will want this data delivered through an interactive application
1 2 3
HotSpot – Business Model Canvas – Day 3 Key Partners
Venues – we plan to provide information for a wide range of venues, each with their own unique information which will be valuable to different customer segments.
Venues – if we create a marketplace in which they are the “suppliers” our app will provide the platform for direct sales / marketing efforts.
Google / other data providers – to obtain historic and real-time location information and occupancy levels
Hardware providers – for tracking occupancy and crowd information
Key Activities
Offer an application, which allows people to see how busy venues are (either historically at a given time or in real-time) and provide useful information about such venues.
Provide a marketplace that enables venues to communicate directly with potential customers
Value Propositions
More concisely and accurately inform people which venues are best for their needs
Venues: additional sales channel & marketing avenue, analytics will enable venues to better understand customers and serve them
Users: One stop shop for users which provides crowd information, venue information, reviews, uber transport options, and merchandise purchase opportunities and deals.
Customer Relationships
Engagement based on customer desire for optimal venue information
Very limited requirements from a support perspective
Customer relationship for each sub sector of product offering should be different
Most efficient call to action is social adoption amongst friends and peers
Customer Segments
We have broadened our customer segment as we have widened our target market and demo.
Our product has a much wider application and customers will be self segmented depending on their specific requirement
We need to narrow down to a core following who find the greatest value as an initial hook – nightlife
We have segmented the bar/club market into 3 segments: Undergraduate and graduate students/ white collar professionals / creative professional
Key Resources
Publically available map, geographic, and venue information
User location data Active input from both
users and venue staff
Channels
Distribute product through a smartphone app
Distribute the product through an online web offering in addition
Cost Structure
Upfront development of UI/UX Collection of traffic and occupancy data. Storage data costs. Google API Key. Marketing to acquire users Scaling product and processes to support growing user base Headcount for technical and sales team
Revenue Streams
Online marketplace between users and venues – commission model – taking % of transaction fee
Advertisements in-app Sale of data to SMBs and financial firms
Museums
Retail Shops
Grocery Stores
Restaurants
Bars and Clubs
HotSpot – Identifying Our Focus Areas
HotSpotis a tool for your life
Through interviews, we have identified bars and clubs as the most
relevant and underserved venues for measuring crowd size
But WHO are our target customers at bars and clubs?
Untested
Untested
HotSpot – Customer Segments and Product / Market Fit
In the bar and club venue category, we have identified three target customer segmentsC
usto
mer
Seg
men
tVa
lue
Pro
posi
tion
Undergradand GradStudents
White Collar YoungProfessionals
CreativeYoungProfessionals
Students with active social lives and excitement to experience new places in the city Age 18-29 Limited disposable income Low loyalty to specific venues In search of the right vibe
Professionals with high stress jobs and a “work hard, play hard” attitude Age 22-28 High disposable income Willingness to spend for the
right thing
Professionals with highly creative jobs in fashion, marketing, and media Age 18-26 Medium disposable income Goal to find trendy,
understated venues
Identify the right place based on: Crowd Size – Crowded but not
overwhelming Price – $, $$ Location – Near campus Vibe – Beer bar, dive bar
Identify the right place based on: Crowd Size – Hottest spots in
the city, packed or exclusive Price – $$$, $$$$ Location – Trendiest hoods Vibe – Night clubs, craft
cocktail bars
Identify the right place based on: Crowd Size – Medium to large
crowd Price – $$, $$$ Location – Hipster hoods Vibe – Alternative longue,
dive bar with taxidermy
HotSpot – Business Model Canvas – Day 4 Key Partners
Venues – we plan to provide information for a wide range of venues, each with their own unique information which will be valuable to different customer segments.
Venues – if we create a marketplace in which they are the “suppliers” our app will provide the platform for direct sales / marketing efforts.
Google / other data providers – to obtain historic and real-time location information and occupancy levels
Hardware providers – for tracking occupancy and crowd information
Key Activities
Offer an application, which allows people to see how busy venues are (either historically at a given time or in real-time) and provide useful information about such venues.
Provide a marketplace that enables venues to communicate directly with potential customers
Provide unique in-app offerings which vary according to venue type
Value Propositions
More concisely and accurately inform people which venues are best for their needs
Venues: additional sales channel & marketing avenue, analytics will enable venues to better understand customers and serve them
Users: One stop shop for users which provides crowd information, venue information, reviews, uber transport options, and merchandise purchase opportunities , deals
For bars / clubs – incorporate new core value propositions for this segment: HotSpot Recommends, In-App Specials, Real time Picture Feeds
Customer Relationships
Engagement based on customer desire for optimal venue information
Very limited requirements from a support perspective
Customer relationship for each sub sector of product offering should be different
Most efficient call to action is social adoption amongst friends and peers
Customer Segments
Our product has a much wider application and customers will be self segmented depending on their specific requirement
Initial focus: core following who find the greatest value in nightlife
We have segmented the bar/club market into 3 2 segments: Undergraduate / graduate students and white collar professionals / creative professional working young professionals
Key Resources
Publically available map, geographic, and venue information
User location data Active input from both
users and venue staff
Channels
Distribute product through a smartphone app
Distribute the product through an online web offering in addition
Cost Structure
Upfront development of UI/UX Collection of traffic and occupancy data. Storage data costs. Google API Key. Marketing to acquire users Scaling product and processes to support growing user base Headcount for technical and sales team
Revenue Streams
Online marketplace between users and venues – commission model – taking % of transaction fee
Advertisements in-app Sale of data to SMBs and financial firms
HotSpot – Channels and Get StrategyD
istri
butio
n C
hann
els Previous Hypothesis: Mobile App Only Revised Hypothesis: Mobile App and Web
People care most about making crowd-sized based decisions on the go; to do this, they will use a mobile app
Users will plan ahead and use computers50% of mobile Yelp searches happen through mobile web, not app
Get
Stra
tegy
Deeply penetrate single geography – New York City Leverage existing networks
across students and working professionals
Create referral incentives CAC: <$.50
Incentivize social evangelists across global urban locations Utilize existing MBA and
personal networks Create referral incentives with
multi-level marketing structure CAC: <$.25
Target users via social media (e.g. Instagram, Facebook) Use data attributes to target
high likelihood adaptors CAC: <$1.75
+
Untested Untested
HotSpot – Revenue Model
1. Fee for In-App Transactions 2. Sale of Analysis from Data
3. Revenue Share with Partners 4. Marketing and Promotion Services
Charge a percentage of in-app revenue generated by business posting geo-based offers to HotSpot users
Take revenue share of the sale of venue tickets, table/bottle service, etc. through partners like Tablelist
Sell customer insights to small and medium sized businesses
Aggregate macro-analysis for sale to hedge funds and investment shops
Charge venues, performing artists, etc. to have their events promoted to HotSpot users
Untested
HotSpot – Business Model Canvas – Day 5 Key Partners
Venue types; museums, bars, clubs, restaurants, grocery stores, retail stores
Venues – we plan to provide information for a wide range of venues, each with their own unique information which will be valuable to different customer segments. Our app will provide the platform for direct sales / marketing efforts.
Google / other data providers – to obtain historic and real-time location information and occupancy levels
Key Activities
Offer an app, which allows people to see how busy venues are (either historically at a given time or in real-time) and provide useful info about such venues.
Provide a marketplace that enables venues to communicate directly with potential customers
Provide unique in-app offerings which vary according to venue type
Value Propositions
Users: More concisely and
accurately inform people which venues are busy in real time and provide information and insights about these venues
One stop shop for users which provides crowd information, venue information, reviews, in-app deals, Hotspot Recommends, and optional real time picture Feeds
Venues: Additional sales channel
& marketing avenue Source of data analytics
which will enable venues to better understand customers and serve them
Customer Relationships
Users – Get Strategy: Leverage existing
student + working professionals
Referral incentives Incentivize social
evangelists Social media ads
Venues – Get Strategy: Social media ads In-store visits
CustomerSegments
Our product has a wide application and customers will be self segmented depending on their specific venue selections
Initial focus: core following who find the greatest value in nightlife (bar/club market)
Segmented into Undergrad/grad students and working young professionals
Venue segmented by types: museums, bars, clubs, restaurants, grocery stores, retail stores
Channels
Distribute product through a smartphone app
Distribute the product through an online web offering in addition
Key Resources
Publically available map, geographic, and venue information
User location data Active input from both
users and venue staff Other social API plugins
Cost Structure
Upfront development of UI/UX Data: Collection of traffic and occupancy data., storage data costs, third
party API keys. Marketing to acquire users Scaling product and processes to support growing user base Headcount for technical and sales team
Revenue Streams
Online marketplace between users and venues – commission model – taking % of transaction fee
Advertisements in-app Sale of data to SMBs and financial firms
Venues CustomersKey:
HotSpot – Our MVP
After showcasing our MVP product, 60% of interviewees actioned to download it and 75% of interviewees provided their email addresses to receive updates
HotSpot – Next Steps
Interview Users – To validate evangelist growth strategy and “download now” sentiment Venues – To understand the value HotSpot provides to them Partners – To verify mutually beneficial opportunities with complementary products
PrioritizeFeatures
Based on feedback from users, venues, and partners Factoring in difficulty to introduce to our platform and cost
Iteratively Build Gradually introduce additional features to the UI/UX, verifying customer interest
by using an agile-like methodology Work towards a product that users download and start using in their daily life
HotSpot – Experiment Results Day 2
Category Subcategory Test P/F Signal Results
Customer Segment
MillennialsAsk across wide demo if problem identified is real
Pass: Millennials confirm problem 30% more than others
Fail – wide interest across multiple demographics
Nightlife interestsRank venues where crowd size information is most useful
Pass: Nightlife comes up as #1 in 20 of 30 users
Fail – strong interest in multiple applications: Restaurants, Bars, Grocery Stores
Value Proposition
Crowd size is inconvenience for people at venues (too large, too small)
Rank pain points at venue types
Pass: Crowdedness ranked in top 2 problem for venues 15 of 30 users
Pass – Crowdedness ranked majority as top 2 among 48 users
People gain value from crowd size information
Confirmation of usefulness + to download app + give email info for updates
Pass: 75% acceptance rate by 30 users
Pass – 90% confirmation + email commit rate
Venues find value in incremental sales channels
Interview venues for interest in additional sales channels
Pass: 75% venue owners confirm TBD Subject of later tests
Channel Delivery through mobile app
Customers rank usefulness of mobile app vs. web information
Pass: 2/3 users prefer app
Pass – strong majority mobile app, but additional interest in web-based offering
Revenue
Commission-based model Venue owner interviews Pass: 75% venue
owners say yes TBD Subject of later tests
In-app ads Ask user ads ok to have Pass: 75% of users ok with ads TBD Subject of later tests
HotSpot – Experiment Results Day 3
Category Subcategory Test P/F Signal Results
Crowd size of venue is important decider of
venue choice
All Venues(Grocery stores, Restaurants, Bars/Clubs)
Rank top 3 concerns in a venue
Pass: Crowd size ranked as top 3 concern for majority of users
Pass – highest among bars/clubs + restaurants
Users find enough value in
historical data to
download the app
based on specific venue types
Grocery Store
Will download app solely based on historical data of restaurant crowdedness
Pass: Yes confirmation by 75% of respondents
Fail – No strong interest as grocery store as hook
Restaurants
Will download app solely based on historical data of restaurant crowdedness
Pass: Yes confirmation by 75% of respondents
Pass – Yes, requires more testing on bigger pool
Bars/Clubs
Will download app solely based on historical data of bar/club crowdedness
Pass: Yes confirmation by 75% of respondents
Pass – Yes, requires more testing on bigger pool
We validated the types of venues where crowd size data was wanted
HotSpot – Experiment Results Day 4
Category Subcategory Test P/F Signal Results
Bar and Club
Venues Customer Segments
Undergraduate and Graduate Students
Will download app based on historical data of bar/club crowdedness
Pass: 75% confirmed yes Pass
Additional features will boost download rate
Pass: 75% respondents confirm yes + 2 features wanted by majority
Pass – Live picture feed + In-app drink special
White Collar Young Professional
Will download app based on historical data of bar/club crowdedness
Pass: 75% confirmed yes Pass
Additional features will boost download rate
Pass: 75% respondents confirm yes + 2 features wanted by majority
Pass – In-app drink special + HotSpot recommendations
Creative Young Professionals
Will download app based on historical data of bar/club crowdedness
Pass: 75% confirmed yes Fail – low # surveyed
Additional features will boost download rate
Pass: 75% respondents confirm yes + 2 features wanted by majority
Pass – HotSpot recommendations + In-app drink specials
We aimed to validate “hook” strategies that will drive downloads from target segments
HotSpot – Experiment Results Day 5
Category Subcategory Test P/F Signal Results
Distribution
Channels
Mobile App Only
1) Ask users if they would engage with this offering if only offered on app
2) Comparables – ask people if they would still use Yelp / Foursquare if only available as an app
1) Pass: 75% confirmed yes
2) Pass: 75% respondents confirm yes
1) Fail2) Fail
Mobile App and Web UI
1) Ask people whether they use mobile / web to access offerings which are also offered as an app
2) Ask user preference as to apps / web access
1) Pass: 75% confirmed yes
2) Pass: 75% respondents confirm prefer both
1) Pass2) Pass
Get Strategy
Deeply penetrate single geography – New York City
1) Friends and colleagues will download and test app
2) What incentives would be required for them to spread the word across NYC colleagues and friends
1) Pass: 75% confirm yes2) Qualitative survey
question
1) Pass
2) TBD
Incentivize social evangelists across global urban locations
1) Outreach and gage interest to known evangelists
2) Speak to competitors who have tried similar things
1) Show interest / Have no interest
2) How successful has this been
TBD1) TBD
2) Pass
Target users via social media (e.g. Instagram, Facebook)
1) Run $10 trial run of the social media promotion on Facebook and look at the effect of $10 campaign
1) Our $10 investment attracts users TBD 1) TBD
We aimed to validate distribution channels, get strategies, and revenue models
HotSpot – Experiment Results Day 5
Category Subcategory Test P/F Signal Results
Revenue Models
Fee for In-App Transactions
1) Would customers use In App Transactions
2) Would venues be happy to have additional sales channel + pay fee
1) Pass: 75% confirmed yes2) Pass: 75% respondents confirm
yes
1) Pass2) Pass
Sale of Data Insights
1) Ask SME’s whether there is value in them having crowd information about their venue
2) Rank value of information to venues
3) Find out how much they would be willing to pay for this
1) Pass: 75% confirmed yes2) Less than 3 of 5 fails3) Will be relative to each situation TBD
1) TBD2) TBD3) TBD
Revenue Share with Partners
1) There are other applications which we can partner with to secure additional stream e.g. table list
1) Qualitative confirmation and insights from these products that they are open to such methodologies
TBD 1) TBD
Marketing and Promotion Services
1) Would venues / products see upside in an additional promotion channel
2) Are there any downside to venues we haven't considered
1) Pass: 75% confirmed yes2) Get Insight
1) Pass, but need proof of large user base
2) TBD
We aimed to validate distribution channels, get strategies, and revenue models