Startup Model – Combining Selfies with Moments

THE MODEL: A app which lets users click 2 photographs, one from the front camera and the other one from the rear one, and stitches them together to create 1 frontback image. One image is able to show the moment while the other, which is a selfie, works as an emoji

STARTUP: Frontback (Belgian startup)

WHAT I LIKE

Core Idea – A fun app which captures moments with selfies.

The Fun Angle – Using selfies as emojis and attaching them to moments captured is fun and addictive. Also it helps cut down on users having to upload multiple images on social networks.

CONCERNS

Competition – A selfie app which stitches 2 photographs together may not be enough to get users to download the app.

Startup Model – Fitness Tracking App

THE MODEL: A app which helps users track how much they move every day and how much they need to move. The goal is to move atleast 30 minutes in a day.

STARTUP: Human (Dutch startup)

WHAT I LIKE

Core Idea – An app for fitness tracking and advice.

Passive Location Tracking – A user has to simply set it up once and forget about it. It keeps working in the background.

Good Design – The app has a great animated design and the background picture keeps changing.

Comparing Feature – A user can compare his/her activity levels as compared to people around. This helps in assessment as well as motivation.

Data Analytics & Usage – The app plans to collect data about a user’s home, office, gym and use that to improve daily habits and lifestyle. This will help move the app from a crowded fitness tracking space to a space more focused on fitness support and advice.

CONCERNS

Competition – The fitness app space is a very crowded one. Though Human is trying to differentiate itself, getting user downloads will be challenging.

Startup Model – Social Networking with People Nearby

THE MODEL: A platform where users can find and make friends with people based on location and shared interests.

STARTUP: Badoo (British startup)

WHAT I LIKE

Core Idea – A platform for users to search for people around with similar interests.

Benefits to Users – Users can find people around them. Also users can meet other users who share common interests.

Localization – The app tries to localize content as much as possible. It greets you in your local language and shows profiles of people around you.

Easy & Fun – The app is very easy to use. Also they ask users to play a game (called Encounters) to match them with other users.

CONCERNS

Competition – This is very tough space to be in. Just way too many offering a very similar experience to users.

The De Beers Story – Creating & Manipulating Demand

A lot of us believe that De Beers’ success story is based on the fact that it controls supply. However, the company has unlocked greater value for itself through it’s marketing campaign through which it has managed to create a permanent aspirational demand for a product which basically had no demand earlier.

The ‘a diamond is forever’ campaign was launched in 1914. The aim of the campaign was to connect the product, which basically is a commodity, with feelings of love and commitment. The campaign was able to do just that and the diamond became the symbol of love and the standard stone to be used in any engagement ring. The impact of the campaign was so strong that the trend is prevalent even today and is showing no signs of any change going forward as well. In fact, the diamond is now a standard gifting stone for occasions such as anniversaries, birthdays etc. as well.

What De Beers was able to do was to move its product out of a zone where people value it based on pure supply-demand factors and into one where the core demand and value comes from human emotion and aspiration.

Identifying Who To Reach Out To

Since our marketing budget is minimal, we need to use any resources we have efficiently. To do this, I sat down and tried to work out what exactly should be done. Since I am not aware of what the best ways to reach out to students in Tilburg are, I decided to atleast start off by identifying who I need to reach out to and with what message.

The following are some things I came up with.

Reaching out to 1^st year students (both UG & PG) – These are students who are new to  the place (generally) and require help in settling down, cleaning, buying stuff, learning a language, finding an accommodation etc. They can be reached out to for posting their requirements on the platform.

Reaching out to final year students (UG & PG) – These students would be looking to offer the products and services 1^st year students require. Since they would be moving out soon, they would be looking to sell their stuff.

Reaching out to Shops & Property Agents in Tilburg – Shops selling bicycles, second hand stuff, offering laundry and other services etc. will be looking to visit the platform to get leads.

Reaching out to PG students – These students tend to have less time and would look to outsource a lot of their daily chores like cleaning, cooking, laundry etc.

Reaching out to UG students – UG students have more time at hand and may look to use the time to earn some money. They might be interested in doing the chores which are looking to be outsourced.

Reaching out to 1^st year male students – They would be more interested in finding dates.

Reaching out to 1^st year female students – They might be interested in finding dates and may use the platform as well.

I am constantly thinking of new groups of people who might use Halllp for a requirement of theirs. The next step would be to find out the best way to reach out.

Startup Model – Track Your Favorite Artists

THE MODEL: A platform where users can track their favorite artists and bands and see when they are performing in their area. Users can also buy tickets through the platform.

STARTUP: Songkick (British startup)

WHAT I LIKE

Core Idea – A platform for users to search for and book tickets for concerts.

Benefits to Users – Users can organize their favorite bands and concerts in one place, get to know when these artists are performing in your area and also book tickets before they sell out.

Big Problem Addressed – Over 50% of concert tickets go unsold. The main reason is that fans are unaware of concerts taking place. The startup tries to solve this problem.

CONCERNS

Competition – A lot of concert discovery and booking apps are competing in the market. The startup will face resistance growing into different geographies.

Startup Model – Camping with a Local

THE MODEL: A platform where users can search for and rent private land for camping. Land owners can list their properties on the platform and users looking for a camping site can search for and rent them.

STARTUP: Gamping (French startup)

WHAT I LIKE

Core Idea – A platform for users to search for and rent out land for camping.

Benefits to Users – Users can look for safe, economical and friendly accommodations which offer an experience which is unique. Land owners can meet new people and earn some money from the land they own.

CONCERNS

Market Size – The size of this market is a concern and the startup may need to expand into other associated models to increase revenue. Ecommerce of camping gear is an option.

Experiential Marketing – Establishing a Closer Connect Between Customer & Brand

Experiential marketing refers to creating a closer connect between a brand and a customer through a fun and memorable experience. The basic purpose of experiential marketing is to create visibility and strengthen brand loyalty. An experience is created to attract a potential customer and to create a positive emotional connect. This connect may not give results in the shorter term, but is great for the long term. Hence, one metric which is often targeted through experiential marketing is the Customer Lifetime Value (CLV).

A lot of brand have aggressively used this kind of marketing to promote themselves. Carlsberg put up a billboard in Brick Lane, London, which said ‘Probably the best poster in the world’. In the center of the billboard was an actual tap attached from which people could pull out pints. One beer was allowed per person.

This was an instantaneous hit and Carlsberg was able to use a vibrant street with a big footfall to create awareness about itself.

Startup Model – The Sailing Marketplace

THE MODEL: A platform where users can search for and rent boats which are financially and technically secure. Boat owners can list their boats on the platform and users looking for a boat can search for and rent them.

STARTUP: Tubbber (Dutch startup)

WHAT I LIKE

Core Idea – A platform for users to search for and rent out boats.

Value Addition – Tubbber acts a backbone in the entire process. It provides the platform for the transaction. Also the startup ensures secure payments, boat and skipper insurance and a personal check of the boat and its owners.

Niche – Focusing on a niche helps users get a better experience.

CONCERNS

Market Size – The size of this market is a concern and the startup may need to expand into other associated models to increase revenue.

Startup Model – Connecting Job Seekers to Jobs

THE MODEL: An app which connects users to jobs based on their skill sets and interest areas. Users can get recommendation from their network.

STARTUP: CutShort (Indian startup)

WHAT I LIKE

Core Idea – A platform for users to connect to jobs of interest.

Ease of Use – The service is extremely easy to use. Users need o create a detailed profile initially detailing their interest areas. The platform then connects the users to jobs which may be of interest to them.

Linkedin Integration – Connecting to Linkedin ensures that the user does not have to enter basic details again. Also it helps in using the existing network of users rather than them having to build a network again.

Freemium Model – The app offers a free service which is complemented with a paid upgrade once the user gets hooked onto the service.

CONCERNS

Differentiation – The app could not present a very clear differentiator from Linkedin. The focus of this startup is to connect users to the right jobs. This focus needs to be highlighted clearly through the user interface and features.

The Tesco South Korean Story – The Customer Can Lead to Marketing Hacks

Tesco Homeplus had emerged as a strong player in the grocery retail market in South Korea. However it was at the 2^nd position and was looking at a way to reach the top position without increasing the number of stores and overheads associated with them.

They started thinking of what problems and changes customers were facing in their daily lives. The 2 most significant ones were that smartphone usage was growing rapidly and also that free time was becoming scarce.

The company decided to use both of these observations and came up with a strategy to take the store to the customer rather than vice versa. They created ‘Virtual Marketplaces’ in locations where people generally waited everyday. Using their smartphones, customers could simply scan the products they were interested in and could complete the purchase online itself. The goods were then delivered directly to the customers’ homes.

The company was able to use 2 factors which were not related to each other and helped convert the customer’s waiting time into shopping time. The sales of the company increased instantaneously and it became the largest online retailer and a close 2^nd in the offline space.

Tesco Homeplus Success Story

Startup Model – Easiest Way to Send Big Files

THE MODEL: An app which lets users transfer big files, free of charge. The app is free, clean, simple and secure.

STARTUP: WeTransfer (Dutch startup)

WHAT I LIKE

Core Idea – An online file transferring platform for users.

Ease of Use – The service is extremely easy to use. Users can send files without registering and in very few steps.

Benefits to Users – The app has a free and a paid model. The free service lets users send files upto 2 GB. The paid model enhances this size limit to 20 GB. Also users can customize the backgrounds and urls and can password protect confidential file transfers.

Freemium Model –  The free model lets users experience the core service. For an enhanced experience, users have to upgrade to the paid plan.

CONCERNS

Competition – There are a lot of data storage and transfer apps. This space is very competitive and differentiating is difficult.

Startup Model – Doing More With Your Contacts

THE MODEL: A mobile app that lets users create, organize and communicate with their contacts in ways which were not possible before. The app empowers users to do more in less time with its various features.

STARTUP: Interact (American startup)

WHAT I LIKE

Core Idea – A platform for users to do more with their contacts in less time and with less effort.

Product Features – Users can create and manage groups with features like group management, one tap contact creation etc. They can create new contacts easily using natural language parsing. Users can contact individuals or groups with a single tap and can also share files, images and text via email and messages.

Multi Platform – The app works across the iPhone & the iPad. Also the app enables users to use their contacts with a growing list of third party apps.

CONCERNS

Product Limitations – Currently the product has certain limitations such as not working well with older iOS devices or with very large number of contacts. Also there are certain issues with Micrsoft Exchange based accounts and Gmail contacts. The app is working to improve on these.

Market Size – Since the app is basically meant for power users, regular users may not want to pay $4.99 for it. Most regular users are satisfied with the inbuilt contacts app and may not feel the need to pay for an upgrade.

Empowering Employees the Ritz Carlton Way

Great brands are built by great teams. In the services sector, especially in hospitality, leading hotel chains go to lengths to empower their employees as employees deal directly with customers and hence eventually end up playing the most significant part in creating the brand.

Ritz Carlton is a leading luxury hotel chain which has established its own standards and brand across the world. It has often been named as one of the best companies in America for employee training. The motto of the hotel chain is ‘We are Ladies and Gentlemen serving Ladies and Gentlemen’.

One of the unique things the hotel chain is that it gives its employees a spending limit of $2,000 to ensure that guests have an enjoyable experience at the hotel without having to take permission from the management. This shows how much they appreciate and value their employees.

Factors Affecting User Conversion Rate

User conversion rate refers to the percentage of visitors ho end up taking up a desired action. It depends on various factors which have been detailed below.

Value proposition – This is the sum of all the costs and benefits of taking action. What is the overall perceived benefit in your customer’s mind? Those perceived costs and benefits make up your value proposition.

Relevance – How closely does the content on your page match what your visitors are expecting to see? How closely does your value proposition match their needs?

Clarity – How clear is your value proposition, main message, and call-to-action?

Anxiety – Are there elements on your page (or missing from your page) that create uncertainty in your customer’s mind?

Distraction – What is the first thing you see on the page? Does it help or hurt your main purpose? What does the page offer that is conflicting or off-target?

Urgency – Why should your visitors take action now? What incentives, offers, tone, and presentation will move them to action immediately?

(source: Qualaroo’s Guide on CRO)

Conversion Rate Optimization (CRO) Explained

CRO basically refers to using analytics and user feedback to increase user conversion rates. These conversion rates could around any set of KPIs we wish to target such as user signups, sale conversions, email subscriptions etc.

With increasing competition, startups are having to shell out more for acquiring new users. A higher conversion rate implies a better ROI and hence it is becoming increasingly important to also focus on converting the traffic you are getting. This is where CRO comes into the picture.

Some areas which can be looked at by a startup are as follows.

Usability – Is the interface easy to navigate and use? Registration, navigation and checkout should be easy to find and operate.

Interface – The interface should be clean and banners should be well placed and separated from each other. Photographs tend to attract user attention, though too many can lead to confusion.

Call to Action – This is what you are trying to achieve. Your CTA should be well placed and easy to spot.

Trust – Is your startup able to build trust using tools such as social proofing, security information etc.?

These are just a few of the areas which form part of a CRO exercise. The complete list is much longer.

Marketing Hack – Fake It Till You Make It

Any startup, especially an online one, can use this hack to build trust and credibility. You can try to look bigger than you actually are. If you act like a big deal, customers will treat you as a big deal.

We did this in Beveragewala as well. We were actually a very small startup doing around 10-15 orders a day when thought about doing this. Some of the things we did were as follows.

Professional Packaging – We started using good quality branded packaging to dispatch the goods. This made the look of the packages very professional and coming from a ‘big’ player.

Customer Care – We bought a toll free number which started with the 1800 series rather than having a regular mobile phone as our customer support helpline. Also a professional recording giving users various options to navigate through gave the entire experience a very professional and big player touch. Along with this, we also created multiple email ids, one each for every possible query.

Stationery – All our printed material like flyers, invoices etc. had our branding on it and were well designed and printed on reasonably good quality paper.

Website Interface – We added a lot of sections to our homepage to make the site look very busy. Also the banners and photographs were changed frequently.

Making your startup look as big as some of your competitors can be done with little investment. However, this tends to make an impact which is quite strong in the minds of your customers.

Startup Model – Making & Sharing Payments

THE MODEL: A mobile app that lets users make and share payments with other users. Users can use the app to make payments either in their Venmo accounts or from their bank accounts or debit cards. Users can also create memories by mentioning what the payment is made for (like splitting a bill, paying for holiday expenses etc.). Also money can transferred back into a bank account within 1 working day.

STARTUP: Venmo (American startup)

WHAT I LIKE

Core Idea – A platform for users to make and share payments with others.

Security – Security is a key aspect in this space. All data is encrypted, stored and protected on secure servers. Also the app has a security support team to answer any questions and concerns of users around safety.

Trust – Venmo is now part of Paypal (a leading online payments app) and the latter plans t let merchants make payments through the former. This adds trust in the minds of users.

Pricing for the User – The app is free to use with a bank account and debit cards. There is a 3% charge on credit cards and certain debit cards. Receiving money is totally free. This competitive pricing will help the app in gaining user traction.

CONCERNS

Sustainability – Since the pricing is very competitive, long term sustainability of the startup is a concern.

Competition – The payment apps space has become very crowded. However, Venmo can benefit because of it being part of Paypal.

Startup Model – Travel Planner, Guide & Memoir

THE MODEL: A mobile app that distills the best of trip planning, travel guides, journaling, sharing and personalized mementos, designed for today’s smart-phone enabled traveler. Users can plan their trips, capture moments during trips and relive them through mementoes.

STARTUP: Firef.ly (British startup)

WHAT I LIKE

Core Idea – An end to end travel planner, guide and memoir for avid travelers.

Product Features – The app first plans trips for users using their demographics and other user recommendations. Users can then discover places to eat, shop, drink, stay etc. Moments during the trip can be captured using the camera and notes features provided. And finally users can create memoirs from their experiences by ordering posters, postcards etc.

End to End Platform – The platform gives travelers an end-to-end platform where they can plan, capture and relive their travel. This ensures more customer engagement and hence higher customer loyalty.

CONCERNS

Competition – There are many apps for users offering a single or a few services from the services offered by Firef.ly. Some of these apps are well established and the startup may find it difficult competing with them.

Many Business Models – Though the app is giving users an end-to-end experience, managing different aspects of the startup will be difficult. All the features are distinct and have their own set of challenges and requirements. 

Top 2 Challenges Faced by Chinese Companies in Expanding Globally

China has emerged as an economic superpower in the recent past. Having focused on a large domestic population in their initial years, Chinese enterprises are now looking at overseas expansions to fuel their next wave of growth and establish themselves in the global economy. These expansions have been directed both towards the developed and the developing world, based on the requirements of the enterprises.

Overseas expansion, especially westward, brings with it significant challenges. The following are 2 of the most significant and difficult challenges which, according to me, Chinese enterprises will have to face on a macro level in their effort of expanding overseas.

Leadership Development – Hiring and developing manpower for managing the overseas operations of Chinese enterprises is one of the biggest problems these enterprises face. According to a McKinsey survey conducted during the 2008 Boao Forum, nearly 88% of the Chinese firms believed that shortage of right talent is the leading cause of failures in their overseas investments. Enterprises have 2 options here -producing domestic talent and placing them overseas or hiring international talent with multinational experience.

In the first case, enterprises need to work closely with leading Universities to generate talent which is a good fit for and capable of managing international operations of the business. The working of the firm in China and overseas would be very different due to political, legal, cultural and regulatory issues. This has to be clearly taught to Chinese students who are being trained.

In the second case, Chinese enterprises will need to contend with their image (which is discussed below) and uncertainties in the minds of potential recruits. These uncertainties revolve around issues like salary levels, human resource policies, employee morale levels, working environment and so on.

International Image & Acceptance – This is a problem which companies from developing countries have to face when trying to enter a country more developed than it. Since the working environment and processes in the developing world differ significantly from the conditions in the developed countries, this gap tends to create an uncertainty and image about the professionalism of companies coming from developing countries, which affects their acceptance in the developed world. Other than business factors, political factors also play a role. The image of the Chinese Government in the world tends to get associated with Chinese enterprises as well. This again affects the way these enterprises are perceived. Also there is a factor of anxiety and arrogance which plays a role. Companies and Governments of the developed world tend to dissuade enterprises from developing countries to enter their countries in order to protect their interests. Also they develop the fear and arrogance which is associated with an underdog growing to beat a favorite.

Why Students from the Best Colleges Tend to Startup?

We often read about students of the best colleges starting their ventures. Why is it so? I feel there are multiple reasons for this.

Best Students – The best colleges tend to filter out the best students through entrance tests and interviews. These students tend to apply their mind more and are more aware of the latest happenings around the world, thus lading to more entrepreneurs.

Better Backup – A degree from a better college has more value and hence tends to give students a better backup even if their ventures fail.

Better Resources & Support – Better colleges offer better support and resources to students. Also top companies and entrepreneurs tend to visit such campuses, which further promotes entrepreneurship amongst students.

Culture – With the best students having access to the best resources, a culture of entrepreneurship and value creation tends to develop within the campus, which is actually passed down to the new batches which get enrolled.

The only downside to a student of such a college starting up is the higher opportunity cost as compared to students from lower ranked colleges.

Startup Model – Connecting Through Recommendations

THE MODEL: An app which lets users get recommendations from friends about books, music, restaurants etc. Users can also find other users sharing similar interests.

STARTUP: Rex (American startup)

WHAT I LIKE

Core Idea – A social recommendations cum networking platform for users.

Market Need – Nearly 84% of users take advice from the recommendations of family, friends and others (source: Nielsen Report). This shows the big need which this app tries to address.

CONCERNS

Competition – Users currently use established social networks and other vertical discovery tools to get recommendations and reviews. Getting users to shift to a new app only for recommendations will be difficult.

Revenue Model – BlaBlaCar

BlaBlaCar has emerged as the world’s largest long distance ride sharing community. It connects car owners and travelers from over 700 cities in the world.

REVENUE MODELS

Flat Commission Fee – The startup charges a commission fee once it is able to reach a critical mass in a country. For example, in France, the startup takes a flat commission of 10-15% of the trip cost. In countries like India where the model is still new, it does not charge any fee.

Before the startup deployed an online booking system, it used to earn revenue through advertising and through partnerships with companies to offer ride sharing platforms.

CONCERNS

Market Size – Intra-city car sharing is a big market due to its recurring nature. Inter-city car pooling seems to be a smaller market. Booking commissions are the biggest revenue models in a small market. However, owing to the nature and size of the market, additional revenue models like advertising and partnerships with companies, which the startup was using earlier, should also be looked at.

Startup Model – Next Generation Social Networking & Messaging Platform

THE MODEL: An app which lets users create visual messages and interact with friends and people they wish to follow. Users can create basic images from scratch as well as interactive images to solicit opinions from other users. Users can send messages privately or one-to-one, publicly across the network and also explore things and brands they wish to follow.

STARTUP: Yubl (British startup)

WHAT I LIKE

Core Idea – A social networking and messaging platform for users.

Product Features – Users can create basic and interactive images, which can be used to solicit opinions from other users. Messaging can be done privately or publicly. Also users can follow brands and users they wish to. There are other interactive features such as pointing to your current location, pointing to a location for  future meetup etc.

Clean Interface – The tool is extremely easy to use and has a clean design which accommodates all the features.

CONCERNS

Competition – The app offers a service which is in a very competitive space. Differentiating itself and getting users to download it will be difficult.

Gamification for Startups

Gamification implies the use of game mechanics to startups. We use the mechanics of traditional games to increase startup metrics such as customer retention.

Acquiring new customers is expensive. Hence startups are increasingly looking to increase their customer retention rates and reduce churn. This is where gamification has emerged as an important tool. The metric which most startups look to target using gamification is the Lifetime Value(LTV) of a customer.

Startups give users incentives (generally monetary) to engage more with the product. This generally affects users in 2 ways – it gives them an incentive to use the product more due to a monetary saving and it also tends to hit on their competitive instincts while competing with other users.

Incentives can be in multiple forms.

Points – which increase with the engagement level of the user with the product. Points can be redeemed for discounts or at times act merely as a score to compete with other users.

Targets – which when achieved lead to the unlocking of a host of benefits for users.

Gamification must be used well by a startup. It does not always add value. For it to do so, the game setup must be relevant for the business, must highlight the product benefits and must be able to add to the customer experience. Without all this, a gamification effort might end up irritating customers.

Startup Model – Visual Storytelling

THE MODEL: An Ipad app which lets user create visual stories. Users can import photos from any other app, resize them and then annotate them with captions.

STARTUP: Storehouse (American startup)

WHAT I LIKE

Core Idea – A tool for users to create visual stories.

Product Features – Users can access photos from any app, drag and drop them, alter them and add captions to create stories. Also users can explore other stories on the app and also build a feed to get stories from people they follow.

Design – The tool is extremely easy to use and has a polished design.

CONCERNS

Competition – The app offers a service which is also being offered by other photo sharing apps now. Getting users to download another similar app is a daunting task ahead of the startup.

Startup Model – Video Sequences with Social Participation

THE MODEL: An app in which once a user uploads a video, his/her friend’s and others can post a reply each to the video using a photo or a video, thereby creating a sequence of videos/media which is called Tuurnt. Every user will have 24 hours to participate in a Tuurnt video with one reply each. 

STARTUP: Tuurnt (Canadian startup)

WHAT I LIKE

Core Idea – A tool for users to create memories by letting other users reply directly to a video using another video or a photo, thereby creating a truly ‘social media’. Users will no longer have to see old videos as stand-alone videos.

Time Limit – Users get 24 hours to reply to any video which goes live on the app. This creates a sense of urgency and impulse and can get users to engage with the platform, just like Snapchat did.

CONCERNS

Competition – The app offers an experience which is very close to the ones offered by several big social networks. Getting users to download another social networking app may be difficult.

Nailing Celebrity Advertising

Using celebrities in advertisements has become very common nowadays. Be it for television, radio or newspaper advertisements or for product launches, brands are spending huge amounts of money on getting the biggest celebrities to advertise for them.

Celebrities have a reach and a brand associated to them. Companies want to connect their brand to the brand of these celebrities so that the reach and impact of their advertising messages becomes higher. When 2 brands combine, it has an additive effect. However, to ensure that the effect is maximum, the brands should be complementary so that a synergy can be created. If brands with different attributes combine, very less value is created. For example, I recently saw a popular Indian actress advertising for a residential real estate project. I simply don’t understand why.

A good example of a brand nailing celebrity advertising is Puma. The brand signed an endorsement deal with the football legend, Pele, for the 1970 World Cup. First of all, this was a good fit as the brand and the celebrity have common attributes, sports and fitness. Puma also came up with an ingenious hack to get its message across. Part of their deal involved Pele intentionally asking for time at the beginning of every match to tie his shoelaces. When he did, the cameras would automatically pan down to see what he was doing and would end up highlighting his Puma shoes.