sefi 4.25.2011 founders institute seely

8/7/2019 SEFI 4.25.2011 Founders Institute Seely

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FounderIns+tuteSea/le

StartupResearch-Suppor+ngYourIdeawithFacts

JeffreySeely4.25.11

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2/21

StartupResearch-thoughtsonsuppor+ngyourideawithfacts

Assignment:takeafreshlookathowresearchhelped

shapeyourproduct,directstrategyand

drivegrowthinyourcompanies

Youhaveanideaorhavealreadybuiltaproduct

Whatroledoesresearchplayatthispointinguidingyournextsteps?

Whataboutongoingresearch? Addressthisfrommyexperiencewith

severaldifferentcompaniesandbrands

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3/21

Basics:thepillarsofmarketandproductresearch

Themarketyouintendtoserve Defineit Sizeit WhowillbethecompeMtors? Whatarethetrendsandforecasts Wheredoesyourideafitin?

Thecustomeryouwanttocapture Demographics ANtudesanddesires Wheretofindher/him Howtoengageher/him

ostimportantly-

Whatproblemarewetryingtosolve?

Whatneedsoftheirsarenotbeingmet?3


4/21

4

Savings-likeinvestmentproductWeb-based,allonlineRecurringrevenuemodelSMcky/accumulatedvalueAUracMvecustomeracquisiMoncostsAddressablemarket

Evaluation Criteria

ShareBuilder:howwedecidedtoposi+ontheproduct

COMPETITIONTARGET

CUSTOMERS

SWEET

SPOT


5/21

5

Earlystageinvestors,lowernetworth IgnoredbySchwab,errill,etc.Simple,easytouseproductLowervaluepercustomer,butmore

ofthem!

Target a Specific Customer Segment

And,howweimprovedoddsofsuccess

COMPETITIONTARGET

CUSTOMERS

SWEET

SPOT!


6/21

Definingthetargetcustomer-anotherperspec+ve

U.S. Distribution of Wealth: Household Net Worth

Lowest 25% Highest 10%

iddle

Income,Early

Stageor

Beginner

Investors


7/21

MarketPosi+oning-gowheretheyaint

Lowest 25% Highest 10%

Industry Standard- Focus on the Wealthy


8/21

Howwevalidatedourcustomertarge+ng

Research: CarefullyanalyzedcompeMMveofferings, StudiedFederalstaMsMcsonpersonalsavings, AUendedinvestmentconferences, SpokewithWallStreetresearchanalysts, AssembledfocusgroupsanddidmulMplesurveys, And,gottoknowthesectormediapersonaliMes-

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Wedeterminedwhoourcustomerwas

ProfileofShareBuilderstargetcustomer Agegroup25-40 EqualdistribuMonofwomen(vs.industrypredominantlymale%) ostlycollege-educated Owntheirfirsthome,orsoonplanningto LiUleinvesMngexperience(usuallycompany401k) Online,ofcourse

InvestmentcharacterisMcs Accountsizeswere


10/21

Research:Wemadeitanongoingpriority

HiredafullMmecustomerresearchprofessional TheProfessorranaconstantprocessofstudyinginvestorbehavior

sabilitytesMngwasaregulardiscipline Webuiltanin-housefacilitytoconstantlytestnewdesigns

Formedacustomeradvisorycouncil InteresMng,butdidntreallywork.Weabandonedit.

RegularscheduleoffocusgroupmeeMngs Otherwiseverydifficulttostayintouchwiththeconsumer

Listentocustomers ExecuMveswererequiredtospendMmeeachmonthincustomercare

department,parMcipaMngincalls

etPromoterScore PSbecameoneofourkeymetrics,anotherwaytomeasurecustomer

happiness

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11/21

Complexi+esofcustomerbehaviorandeconomics

ThebestintenMonssomeMmesdontfollowthrough Americaninvestorslackdiscipline,tendnottosMckwithaplantosave About55%ofnewaccountsactuallyputmoneyintoinvest LessthanhalfofthemonthlyinvesMngplanskeptgoingaer1year

etricsDriven:nitleveleconomicssMllweresuccessful CAC(customeracquisiMoncost)wascloselymanagedagainstactualrevenues PaybackonCACwas


12/21

ShiOinggears-JobsterandRecrui+ng.com

Assignment:restartastartupthathadbeendealingwithcomplexcustomerandproduct

issues,solveoperaMonalproblemsandreposiMonthecompany

Theprocesswetooktore-inventthecompany:

Basically,hadtotakethesameapproachwhenstarMngShareBuildertoassessthe

changedmarket,dobasicresearch,andfigureoutwhichwaytotaketheproductandthebusiness.

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Wedidanassessmentofthesector

Crowded:compeMMonisconcentratedinedium/LargebusinesssegmentConfusing:consolidaMoninevitable;productdefiniMonsfluidandblurring

Changing:landscapewillremaindynamic-alliancesshiingconstantly End-to-endsoluMonsandintegratedHRsuitesaregrowinginpopularity SaaSdeliverymodelisgainingtracMonandmomentum

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Short-term:wearesellinghiringtoolsinthemiddleofahiringfreeze Long-Term:Theglobalwarfortalentisaninevitablerealityandtheremay

beopportunity

TheSHCsowaremarketgrew13%in2007to$7.2B,thenhitawall ForecastwasCAGRof10-12%,growingto$10.6Bto$12.8Bby2012 Jobboardspendingincreasedto$11Bin2008,butcrateredin2009


14/21

Timeline:researchprocessfornewproductstrategy

BoardPresenta+on

ovember18

September

14

August October ovember

Kickoff

mee+ng

August6

serTraining&

SupportDemo

BeginCurrent

CustomerResearch

Worksession

reportoutV2Demo

BeginSecondary

CategoryResearch

Refined

RecommendaMons

Prospect

Research/

Chicago

RetenMon&RenewalDemo

Research

Findings

PresentaMon

JobTechTrade

Show

LeadTeam

WorkSession

Preliminary

RecommendaMons

BeginExecuMve

Interviews

Prospect

Research/LA

Prospect

Research/

YC

SalesDemo


15/21

Customerresearch

ewYork9/18

Chicago9/17

LosAngeles9/22

In-depthBuddyPairinterviewsinChicago,ewYorkandLA 29totalinterviews

Recrui'ngDirectors: 13 HRDirectors: 11 VicePresident,HR: 5

Diversitybygeography,industry,companysize 20K+(e.g.,Disney,IBM,Mitsubishi) 10K20K(e.g.,AIG,Mitsui,Reuters) 1K10K(e.g.,AmericanGolf,USCellular,OSI) 5001K(e.g.,LandmarkTheaters)

AllrespondentsinchargeofrecruiMngormanagingrecruiters,allwereawareofandinterestedinpassivetalent Conducted20-25onsitefocussessionswithlocalrecruiters

andtalentmanagers.Interviewedeveryclientcompany.

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16/21

Wedefinedourtargetcustomer

16

Recruitment

Director

CFO

VP/HR

Line

Recruiters

500+FTEs50+reqsperquarterFiveyearsinpresentposiMonPrimarydecisionmakerBudgetauthorityFrontline+managementperspecMve

Hiringgrs.


17/21

DidtheusualSWTanalysis:IntegratedRecrui+ngSolu+on

Strengths Resolvestension DifferenMaMoninawhitenoisemarket Thoughtleadership DontseecompeMtorwhocanfollow

17

Threats

Cash/Mmepressures Developmenttalent Opportunitycost

pportuniMes

Territorytoclaim,defend,own Cansellasservicevs.product IncreasingsMckiness

Weaknesses oreMme,money ewidea=noanalogue


18/21

Whatstepswetookbasedonourfindings

LearnedJobsterwasperceivedasaconsumername. SoldthejobposMngbusiness,Jobsternameandrelatedassets

RenamedandrebrandedthecompanyRecruiMng.com focustobeonprovidingaCR-likesowareproductforfinding,managing

andcommunicaMngwithfuturehireprospects

RebuilttheproductwithenMrelynewarchitecture Saasservicedesignedtoincorporatetheneedsofourtargetcustomer,easyto

use,withagreatsearchengine

LaunchedthenewRecruiMng.comonscheduleinSept.2009

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19/21

Howitworkedout

otsogood.

Saleswereweakonthenewproduct,andcapitalwasrunningout. arketcondiMonsforrecruiMngsowarewerebadeverywhere;ourtarget

customerswerenothiring,infacttheywerelayingofftheirrecruiMng

teams.BuyingrecruiMngsowarewasntevenonthelist.

WesawnopathtoprofitabilitywithoutaddiMonalfinancing,andourVCswereclearaboutnotinvesMngmore.

WesoldRecruiMng.comtoanotherindustryplayerinthe2ndhalfof2010.

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20/21

Conclusions

ResearchiscriMcalindefiningyourmarketspace,shapingyourproduct,anddrivingyourmarkeMngandproductdevelopmentonceyoulaunch.

Youcantanalyzethingstodeath.TherecomesaMmewhenyouhavetopullthetriggerandjustdoit.

Alltheresearchintheworldwontfixabadideaorstabilizeadifficultmarket.

SomeMmesideasturnintogreatsuccesses,someMmesthingsdontworkout.Thatswhyitsriskcapital.

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FounderIns+tuteSea/le

StartupResearch-Suppor+ngYourIdeawithFacts

JeffreySeely4.25.11

21

Thank You.

sefi 4.25.2011 founders institute seely

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