trust score final 2013 berkeley

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