trust score final 2013 berkeley
TRANSCRIPT
Rapid Screening tool for
recruiters that increases
productivity by 3x
Interviews
I Total: 105 interviews
Our team
Frederic Wagner
MBA Student
“The Consultant”
Borja Carol
MBA Student
“The Money Expert”
Jens Uehlecke
MBA Student
“The Designer”
Seema P.
M. S. Information Systems
“The Hacker”
The Evolution of SpeedMeet
Week 1: TrustScore
Our day 1 hypotheses
• Trust is an issue on e-commerce markets (e.g. Craigslist)
• Buyers, Sellers, and Platforms would benefit from increased trading
Week 1: Proposed product
Week 1: TrustScore canvas
•Higher trans-action values
•Reduced safety risks
•E-commerce platforms
•Online Buyers
•Online Sellers
Week 1: Getting out of the building
What we found:
• Product: “Nothing replaces a face-to-face meeting”
• Market: Craigslist users care about the product, not the people
What we did:
Interviews• Online Buyers• Online Sellers• API expert• Platforms
A – B test postings
•
182323
62
Week 1: Getting out of the building
What we found:
• Product: “Nothing replaces a face-to-face meeting”
• Market: Craigslist users care about the product, not the people
What we did:
Interviews• Online Buyers• Online Sellers• API expert• Platforms
A – B test postings
•
XxXx2
62
Week 4: 3-minute video chats for online dating
Our hypotheses
• Trust in people is important in online-dating
• Video chat is as good as in-person meetings
• After 3 min people know whether a date is promising
Week 4: Updated canvas
•Gain: More successful dates
•Pain: Less time wasted
•Feature: 3 minute video chat
•Female online daters
•Male Online daters
Week 4: Getting out of the building
What we did:
Interviews• Online Daters
Speed dating• Real world dates
Customer Survey• Understanding
online trust issues
24
19
What we found
• “After two minutes I know if it’s not going to work out”
• “I wouldn’t use it as a stand-alone service”
• “Recruiting may be a viable market segment”
62
Week 4: Getting out of the building
What we did:
Interviews• Online Daters
Speed dating• Real world dates
Customer Survey• Understanding
online trust issues
24
19
What we found
• “After two minutes I know if it’s not going to work out”
• “I wouldn’t use it as a stand-alone service”
• “Recruiting may be a viable market segment”
62
“When will it be ready? Can we use it this Semester?!”Jenn Bridge | Haas Director of Recruiting
Our epiphany
Screenshot
Screenshot
Screenshot
Week 10: Final Canvas
•Gain: Increase recruiter produc-tivity by 3x
•Feature: scheduling, 5 minute video, feedback
•Company Recruiters
•Candidates
First Universitiesthen Sales Force
•University recruiting centers
• Subscription model for companies
• Up-front: Acquisition Costs• Variable: Service and training
costs
Candidates perceive great value
Did you ever want to end an interview after 5 mins?
In what share of your interviews?
57%
43%
No
Yes 1 out of 4
The partnerships are symbiotic
I Larger number of companies on campus
I Higher employment numbers
I Awareness and interest among companies
I Awareness among universities
What they get: What we get:
Using Career Centers to get to Companies
Awareness
Interest
Trial
Use
High conversion rate due to universities brand
Based on interviews interest
Driven by Direct Sales
100%
x 90%
x 20%
x 50%
100
90
18
~10
1001 Career Center roughlyserves 100 companies
Companies
Acquisition cost of a company: $3,000
Conversion cost per CompanyPartnership development
cost per Career Centre +
Selling plus closing costs $4.2K
20 hrs of Training and Support
$1.0K
Per company allocated over 10 companies
30 hrs of Outreach and Sales Meetings
$1.5K
20 hrs of Training and Support
$1.0K
Total: $3,000$0.5K Total conversion costs $2.5K
We learned to be ambitious in our pricing
“Do you have a $1 M budget?”
“No, no… But I am currently paying 40K per year for a similar software and could pay $15-20K for yours”
From interviews: From other SAAS companies:
3,7806,000
12,670
30,000
40,000
Apply.net JiraSalesforce Dropbox Intuit
Yearly cost for medium size company
Every customer brings an NPV of $21.8K
Lifetime Value of a customer
Revenues $10.8K
Acquisition costs $3.1K
x 3 year = $32.4K
NPV of a customer $21.8K
Operational costs $7.5K$2.5K x 3 year =
The road ahead
TAM: $7,300M
TSM: $113M
TM: $11.3M
There is a market
Sources: Fast Company, Forbes, Gartner, Ho Kuwabara: “Reputation Systems”
TAMI730K companies in the USIX $10K WTP per company
TSMI113K companies larger than 250 employeesIx 10% potential adopters
TMIx 10% market share we can achieve
The Marketplace is excited
Companies Universities Candidates
“We need something like SpeedMeet right now”
“When can we start the partnership?”
“I would absolutely use it, it would really save time!”
Two major risks must be addressed
Defensible position?Slow traction with universities
• Focus on developing direct sales force
• Becoming a stand-alone career fair
• Going viral with candidates?
• Enrich product offering with Services
• Capturing and retaining client data to lock in
• Long-term vision: Moving beyond interviewing tool
2 years to break even then profits of up to $1M/yr
Forecast of profits evolution ($)
1615142013
600,000
800,000
0
200,000
-200,00018
400,000
17
Profits
10 30 50 100 200 400Number of clients
1 3 5 5 5 5Number of universities
In summary?
105Interviews
19speed dates
2stalkers
214slides
254emails
92hrsmeetings
82%girls interviewed
by Fred
1job offer
6dilated pupils
Thank you for the ride!
Appendix
Canvas week 2
Canvas week 3
Canvas week 4
Canvas week 5
Canvas week 6
Canvas week 7
Canvas week 8
Canvas week 9
Canvas week 10
LTV
LTV
Year - 1 2 3 4 5 6 7 8
Revenue $0 $10,800 $11,124 $11,458 $11,801 $12,155 $12,520 $12,896 $13,283
Number of licenses/company $3 $3 $3 $3 $3 $3 $3 $3
cost per year $3,600 $3,708 $3,819 $3,934 $4,052 $4,173 $4,299 $4,428
Service Cost $0 $2,000 $2,060 $2,122 $2,185 $2,251 $2,319 $2,388 $2,460
Installation $800 $0 $0 $0 $0 $0 $0 $0 $0
Profit ($800) $8,800 $9,064 $9,336 $9,616 $9,904 $10,202 $10,508 $10,823
Attirition rate 0 0.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0%
Probability 100% 100.0% 67.0% 44.9% 30.1% 20.2% 13.5% 9.0% 6.1%
Average Profit ($800) $8,800 $6,073 $4,191 $2,892 $1,996 $1,377 $951 $656
PV ($800) $8,000 $5,019 $3,149 $1,975 $1,239 $777 $488 $306
LTV $20,153
Acquisition costs
Acquisition costs per company (direct channel)
h $
Cost per hour ($) 50
Searching client time (h) 50 2500
Closing deal time (h) 30 1500
Trainning and support (h) 20 1000
Total acquisition costs 5000
Acquisition costs per company (university channel)
h $
Cost per hour ($) 50
Searching university time (h) 25 1250
Closing deal time (h) 60 3000
Trainning and support 25 1250
Total cost of channel ($) 5500
Number of companies interested/university 10 25000
Closing deal time (h) 30 1500
Trainning and support 20 1000
Total acquisition costs 30500
Total acquisition costs per university 3050
Business planYear 2013 2014 2015 2016 2017 2018 2019 2020 2021
Universities 1 3 5 5 5 5 5 5 5
Customers from univeristies 10 30 50
Customers from direct sales 0 0 0 50 100 200 400 800 1600
Customers 10 30 50 50 100 200 400 800 1600
LTV
0 (8,000) 88,000 90,640 93,359 96,160 99,045 102,016 105,077 108,229
1 (24,000) 271,920 280,078 288,480 297,134 306,048 315,230 324,687
2 (40,000) 440,000 453,200 466,796 480,800 495,224 510,081
3 (40,000) 440,000 453,200 466,796 480,800 495,224
4 (80,000) 880,000 906,400 933,592 961,600
5 (160,000) 1,760,000 1,812,800 1,867,184
6 (320,000) 3,520,000 3,625,600
7 (640,000) 7,040,000
8 (1,280,000)
Gross margin (8,000) 64,000 322,560 773,437 1,197,840 2,036,175 3,702,060 7,022,722 13,652,604
Non LTV costs
Acquisition costs universities30500 91500 152500 0 0 0 0 0 0
Acquisition costs direct sales 0 0 0 250000 500000 1000000 2000000 4000000 8000000
Overhead 150000 150000 150000 150000 225000 300000 375000 450000 525000
Total costs 180500 241500 302500 400000 725000 1300000 2375000 4450000 8525000
Total (188,500) (177,500) 20,060 373,437 472,840 736,175 1,327,060 2,572,722 5,127,604