My product management toolkit (25): understanding the “unit economics” of your product

As a product manager it’s important to understand the unit economics of your product, irrespective of whether you’re managing a physical or a digital product. Unit economics are the direct revenues and costs related to a specific business model expressed on a per unit basis. These revenues and costs are the levers that impact the overall financial success of a product. In my view there are a number of reasons why I feel it’s important for product managers to have a good grasp of the unit economics of your product:

  • Helps quantify the value of what we do – Ultimately, product success can be measured in hard metrics such as revenue and profit. Even in cases where our products don’t directly attribute to revenue, they will at least have an impact on operational cost.
  • Customer Value = Business Value – In an ideal world, there’s a perfect equilibrium between customer value and business value. If the customer is happy with your product, buys and uses it, this should result in tangible business value.
  • P&L accountability for product people (1) – Perhaps it’s to do with the fact that product management still is a relatively young discipline, but I’m nevertheless surprised by the limited number of pr0duct people I know who’ve got full P&L responsibility. I believe that having ownership over the profit & loss account helps product decision making and and accountability, not just for product managers but for the product teams that we’re part of.
  • P&L accountability for product people (2) – Understandably, this can be a scary prospect and might impact the ways in which we manage products. However, owning the P&L will (1) make product managers fully accountable for product performance (2) provide clarity and accountability for product decisions, (3) help investments in the product and product marketing and (4) steep product management in data, moving to a more data informed approach to product management.
  • Assessing opportunities based on economics – Let’s move away from assessing new business or product opportunities purely based on “gut feel”. I appreciate that at some point we have to take a leap, especially with new products or problems that haven’t been solved before. At the same time, I do believe it’s critical to use data to help inform your opportunity assessments. Tools like Ash Maurya’s Lean Canvas help to think through and communicate the economics of certain opportunities (see Fig. 1 below). In the “cost structure” part of the lean canvas, for example, you can outline the expected acquisition or distribution cost of a new product.
  • Speaking the same language – It definitely helps the collaboration with stakeholders, the board and investors if you can speak about the unit economics of your product. I know from experience that being able to talk sensibly about unit economics and gross profit, really helps the conversation.

Now that we’ve established the importance of understanding unit economics, let’s look at some of the key components of unit economics  in more detail:

Profit margin per unit = (sales price) – (cost of goods sold + manufacture cost + packaging cost + postage cost + sales cost)

Naturally the exact cost per unit will be dependent on things such as (1) product type (2) point of sale (3) delivery fees and (4) any other ‘cost inputs’.

In a digital context, the user is often the unit. For example, the Lifetime Value (‘LTV’) and Customer Acquisition Cost (‘CAC’) are core metrics for most direct to consumer (B2C) digital products and services. I learned from David Skok and Dave Kellogg about the importance of the ‘CAC to LTV’ ratio.

Granted, Skok and Kellogg apply this ratio to SaaS, but I believe customer acquisition cost (‘CAC’) and customer lifetime value (‘LTV’) are core metrics when you treat the user as a unit; you’ve got a sustainable business model if LTV (significantly) exceeds CAC. In an ideal world, for every £1 it costs to acquire a customer you want to get £3 back in terms of customer lifetime value. Consequently, the LTV:CAC ratio = 3:1.

I’ve seen companies start with high CAC in order to build scale and then lower the CAC as the business matures and relies more on word of mouth as well as higher LTV. Also, companies like Salesforce are well known for carefully designing additions (“editions”) to increase customer lifetime value (see Fig. 2 below). 

Netflix are another good example in this respect, with their long term LTV view of their customers. Netflix take into account the Netflix subscription model and a viable replacement for another subscription model in cable. The average LTV of Netflix customers is 25 months. As a result, Netflix are happy to initially ‘lose’ money on acquiring customers, through a 1-month free trial, as these costs costs will be recouped very soon after acquiring the customer.

Main learning point: You don’t need to be a financial expert to understand the unit economics of your products. Just knowing what the ‘levers’ are that impact your product, will put you in good stead when it comes to making product decisions and collaborating with stakeholders.

 

 Fig. 1 – Lean Canvas template by Ash Maurya – Taken from: https://blog.leanstack.com/

 

Fig. 2 – Pricing and functionality overview for Salesforce’s New Sales Cloud Lightning Editions:

 

Related links for further learning:

  1. https://soundcloud.com/saastr/saastr-142-why-cac-ltv-is-the
  2. https://inpdcenter.com/blog/understanding-product-economics-improve-product-development-success/
  3. https://people.kth.se/~msmith/ii2300_pdf/product_realization_7_2016.pdf
  4. https://www.quora.com/What-are-unit-economics
  5. https://youtu.be/RG_eyn0fRXs
  6. https://medium.com/@markroberge
  7. https://www.slideshare.net/RaviLakkundi/product-management-pricing-31102059
  8. https://www.inc.com/guides/price-your-products.html
  9. http://accountingexplained.com/managerial/cvp-analysis/cost-plus-pricing
  10. https://www.quora.com/What-are-unit-economics
  11. http://www.forentrepreneurs.com/saas-metrics-2-definitions-2/
  12. http://www.problemio.com/business/business_economics.php
  13. https://www.slideshare.net/austinneudecker/startup-unit-economics-and-financial-model
  14. https://www.linkedin.com/pulse/understanding-saas-business-model-unit-economics-ben-cotton/
  15. https://thepathforward.io/how-to-estimate-your-unit-economics-before-you-have-any-customers/
  16. https://thepathforward.io/unit-economics-by-sam-altman/
  17. http://launchingtechventures.blogspot.co.uk/2014/04/e-commerce-metrics.html
  18. https://medium.com/@parthgohil/understanding-unit-economics-of-e-commerce-9c77042a2874
  19. https://yourstory.com/2017/02/unit-economics-flipkart/
  20. https://www.entrepreneur.com/article/283878
  21. https://hbr.org/2016/08/a-quick-guide-to-value-based-pricing
  22. https://unicornomy.com/netflix-business-strategy-netflix-unit-economics/
  23. https://hbr.org/2017/04/what-most-companies-miss-about-customer-lifetime-value

Book review: “Zero to One”

Whatever you think of Peter Thiel, he’s got a lot of ‘street cred’ in the world of technology and venture capital. We all know how he founded PayPal and turned it into a billion dollar company. As a tech investor, Thiel is widely known for being an early investor in the likes of Facebook and LinkedIn. Listening to a recent interview between Thiel and Reid Hoffman on the latter’s podcast inspired me to read Thiel’s “Zero to One: Notes on Startups or How To Build the Future”. Thiel published “Zero to One” in 2014, based on a course about startups that he taught at Stanford previously.

Truth be told, some of Thiel’s views and concepts in “Zero to One” didn’t resonate with me, mostly because I struggled to convert them into action points I can apply to my own situation (read: working at a successful but early stage startup, and being based in London and not in Silicon Valley). Perhaps that’s exactly the point of Thiel’s book; to provide readers with a wide range of views, some more visionary and though provoking than others, and leaving it with readers to ‘pick and mix’ as they see fit. Consequently, these are the main learning points that I took away from reading “Zero to One”:

  1. Forget about being the first mover, be the last mover instead (1) – In strategy terms, people often talk about the benefits of being a “first mover”; a company’s ability to have a head start over its competitors as a result of being first to market in a new product category. The Hoover vacuum cleaner or Apple’s iPad are good examples of products which opened up a whole new product category and therefore did enjoy (durable) first mover advantage. Thiel, however, flips this by arguing the benefits of being a last mover.
  2. Forget about being the first mover, be the last mover instead (2) – Thiel argues that “moving first is a tactic, not a goal.” He stresses that the point of any business is to generate future cash flows, so being the first mover doesn’t do you any good if someone else comes along and unseats you. Video streaming app Meerkat is a good example of a product which was first to market, but got quickly overtaken by late(r) entrants Periscope and Facebook Live. Thiel explains “It’s much better to be the last mover – that is, to make the last great development in  a specific market and enjoy years or even decades of monopoly profits.” He advises that in order to get to such a position, companies need to dominate a small niche and scale up from there, constantly moving toward their long-term vision.
  3. The value of long term planning – I really like Thiel’s point about “lean” being a methodology, not a goal in it’s own right. As much as I see the value and importance of learning early and often, I do agree with Thiel’s opinion s about the pointlessness of iterating just for the sake of it. What’s the point of a Minimum Viable Product if you aren’t going to learn from it and iterate accordingly? What’s the value of just releasing ‘stuff’ without reflecting on whether a release got you a step closer to achieving your overall vision and commercial success? Thiel describes how successful companies like Apple and Facebook used long-term planning and business planning to get a position of durable market success.
  4. What to do with the “Power Law”? (1) – Thiel gives readers a good insight into the workings of venture capital (‘VC’) companies when he discusses the “power law”. The power law is based on the Pareto Principle. You might have come across this principle in the form of the 80/20 rule; explaining the unequal relationship between inputs and outputs, with 20% of invested input being responsible for 80% of results obtained. Thiel explains that this uneven pattern exists just as much in the VC world: “The biggest secret in venture capital is that the best investment in a successful fund equals or outperforms the entire rest of of the fund combined.” To optimise for the power law, Thiel recommends focusing on one market, one distribution strategy and, as a consequence, to be cautious about diversification.
  5. What to do with the “Power Law”? (2) – For me, the most valuable bit of “Zero to One” is the part where Thiel covers how to best use the power law when making critical business and product decisions. Going over his questions, I learned the importance of being pretty single minded about your unique proposition and execution (see Fig. 1 below). Thiel’s thinking about these questions is pretty simple: “Whatever your industry, any great business plan must address each every one of them. If you don’t have good answers to these questions, you’ll run into lots of “bad luck” and your business will fail. If you nail all seven you’ll master fortune and succeed.”

Fig. 1 – “Seven questions that every business must answer” – Taken from: Peter Thiel, “Zero to One”, pp. 153-154

  1. The Engineering Question – Can you create breakthrough technology instead of incremental improvements?
  2. The Timing Question – Is now the right time to start your particular business?
  3. The Monopoly Question – Are you starting with a big share of a small market?
  4. The People Question – Do you have the right team?
  5. The Distribution Question – Do you have a way to not just create but deliver your product?
  6. The Durability Question – Will your market position be defensible 10 and 20 years into the future?
  7. The Secret Question – Have you identified a unique opportunity that others don’t see?

Main learning point: You can tell that “Zero to One” is written by someone who’s ‘been there and done that’. Thiel speaks with authority about the need to focus on a single market and busts commonplace myths about ‘lean’, first mover advantage and diversification.

Related links for further learning:

  1. http://www.telegraph.co.uk/technology/11098971/Peter-Thiel-the-billionaire-tech-entrepreneur-on-a-mission-to-cheat-death.html
  2. https://www.theguardian.com/technology/2016/jul/21/peter-thiel-republican-convention-speech
  3. https://art19.com/shows/masters-of-scale/episodes/09f191df-d089-49a3-876d-75c7730a3f94
  4. http://www.reidhoffman.org/
  5. http://zerotoonebook.com/
  6. https://hbr.org/2005/04/the-half-truth-of-first-mover-advantage
  7. https://marketing-insider.eu/categories-of-new-products/
  8. https://medium.com/@RevelX/first-mover-disadvantage-9-reasons-being-the-first-to-market-may-harm-your-business-9ec75a85b1d2
  9. https://www.forbes.com/sites/ralphbenko/2014/10/13/peter-thiel-we-dont-live-in-a-normal-world-we-live-under-a-power-law/#35b4d7fc7a7d
  10. https://en.wikipedia.org/wiki/Pareto_principle

 

App review: ipagoo

“Accounts designed for the 21st century” is the main strapline of ipagoo, a Fintech startup that offers multi-country and cross-currency accounts. I was intrigued by this concept and decided to download ipagoo’s new iOS app and write a quick review:

My quick summary of ipagoo (before using it) – I expect ipagoo to offer services similar to the World Account that World First, the company I work for, launched a few months ago. The World Account makes it easy for customers to open accounts in specific local currencies, making it easy to receive and pay out in difference currencies.

How does the app explain itself in the first minute? – When I open ipagoo’s iOS app, the first screen is a login one. I’m somewhat thrown by this as I don’t have an ipagoo account and the calls to action aren’t as clear as they could have been.

After finding and tapping on “new to ipagoo?” I land on a screen which explains the different services that ipagoo offers:

  • Accounts – Open and manage multiple accounts in different countries from your smartphone.
  • Payments – Keep payments under control and manage counter parties from the app.
  • Money Transfer – Move money between accounts instantly.
  • Currency Exchange – Switch funds between currencies in real time.

Despite looking a bit clunky, the app does a good job in letting its users know at the start of the onboarding process about the documents required for a successful registration. There’s a clear explanation as to how take a geotagged selfie, and that users need to make sure their phones are enabled for geolocation (complete with short videos for both Android and iOS users). The two-factor authentication process ipagoo applies feels relatively straightforward and seamless; I validate my email address on my desktop, after which a “complete my credentials” screen appears on my mobile app.

However, I’m slightly daunted by the 6-step registration process and the proofs of my ID that I need to upload. The look and feel of the form isn’t compelling, and fields like “previous name(s)” make me wonder why these are necessary in the first place. I do upload my passport, but give up on the registration process when asked for a recent proof of address, a picture of myself with my ID and detailed info about my financial status. I realise that I simply don’t know enough about ipagoo and the benefits of using its services, so I decide to explore things further before deciding whether or not sign up.

 

Perceived benefits of ipagoo – I understand that ipagoo uses traditional banking services to provide its users with a single portal to all their bank accounts, standing orders, debit cards, etc. The ease of accessing multiple accounts and data through a single app should make life a lot easier for customers. Currently, people like me – with accounts and debit cards in different countries – are currently constrained in account access, and having to have multiple logins.

Points of differentiation (existing and future) – Whilst I believe the frictionless aspect of ipagoo will soon become a ‘hygiene factor’ (given that the likes of Curve and Varo Money offer a similarly seamless experience) in future, I expect ipagoo become more of a ‘financial hub’ for customers, using APIs and the opportunities that PSD2 offer. I wouldn’t be surprised if ipagoo do more to address cross-border payments, as well as traditional standing orders, bank transfers, etc. I was therefore pleased to see that some of these aspects are represented on ipagoo’s roadmap. What I didn’t see on ipagoo’s roadmap was predictive analytics and recommendations, being able to understand customer profiles and recommend other financial products accordingly.

Main learning point: I really like ipagoo’s proposition and see plenty opportunities for ipagoo to make the (financial) life of their customers easier. However, I do believe there’s a need to improve the onboarding and user experience of the app, before integrating new services. As it stands, there’s scope to simplify the app experience, making ipagoo a truly ‘sticky’ proposition for its customers.

Related links for further learning:

  1. https://www.ipagoo.com/services
  2. https://moven.com/solutions/
  3. https://about.holvi.com/
  4. http://www.bankingtech.com/277222/new-entrant-ipagoo-targets-businesses-with-pan-european-current-account/
  5. https://marcabraham.com/2017/05/22/how-psd2-is-set-to-change-banking-up-as-we-know-it/
  6. https://ibsintelligence.com/ipagoo-brings-borderless-banking-app-uk/
  7. http://www.thebanker.com/Techvision/Ipagoo-joins-the-EU-dots-to-beat-the-regulators

App review: Receipt Bank

It isn’t often that one of the apps that I use on a regular basis attracts a large round of funding but it happened recently with Receipt Bank, a London based started which “makes your bookkeeping, faster, easier and more efficient.” Last month, Receipt Bank received a Series B investment worth $50 million from New York based Insight Venture Partners.

Receipt Bank, which started in 2010, targets accountants, bookkeepers and small businesses. It offers them an online platform through which users can submit their invoices, receipts, and bills by taking a picture and uploading it through Receipt Bank’s mobile app (see Fig. 1), desktop app (see Fig. 2), or an email submission. Receipt Bank’s system then automatically extracts relevant data, sorts and categorises it. Apart from viewing your processed expenses online, Receipt Bank also publishes everything to the user’s accounting software of choice, FreshBooks or Xero for example.

Fig. 1 – Screenshot of Receipt Bank iOS app

 

 

Fig. 2 – The entry in Receipt Bank for one of my receipts

Given that I’ve been using Receipt Bank for a while now; instead of just reviewing existing functionality, I’ve also had a think about how I’d use a $50m war chest to further build out the Receipt Bank product:

  1. Faster! Faster! Faster! – When I started using Receipt Bank last year, I emailed the customer support team enquiring about the wait between submitting a picture of a receipt and it being “ready for export”. I got a friendly reply explaining that “we ask for a maximum of 24 hours to process items, but we are usually much faster than that.” The customer support adviser also explained that “the turnaround time also depends on the number of items waiting to be processed by the software and also their quality.” I’m sure Receipt Bank uses some form of machine-learning, algorithms to automatically interpret and categorise the key data fields from the picture of a receipt. As the field of Artificial Intelligence continues to evolve, I expect Receipt Bank to be able to – eventually – process receipts and invoices within seconds, with no need for the user to add or edit any info processed. Because I envisage machine learning to be the core driver of Receipt Bank’s proposition, I suggest spending at least half of its latest investment on AI technology and engineers specialised in machine learning.
  2. Not just tracking my bills and invoices – Yes, everybody is jumping on the chatbot wagon (and some of the results are frankly laughable). However, I do believe that if Receipt Bank can learn a sufficient amount about its customers and their spending and accounting behaviours, it will be able to provide them with tailored advice and predictions. For example, if I pay my supplier in China a fixed amount per month to keep my stock up, I’d like to ask Receipt Bank’s future “Expense Assistant” how my supplier payments will be affected if there’s massive volatility in the exchange rate between the British Pound and the Chinese Yuan. Similarly, when I look at most of today’s finance departments, the people in these teams seem to spend on matching the right payments received to the relevant invoice(s) sent out. I realise that the machine learning around multiple invoices wrapped into a single payment is easier said than done, but I don’t think it will be impossible and the $25m investment into AI (see point 1. above) should help massively.
  3. What if the days of paper bills are numbered!? – Now that I’ve effectively spent $25m on AI technology, I’ve got $25m left. The first thing I’d do with this remaining money is to prepare for scenarios where invoices or receipts are no longer issued on paper but provided orally. At the moment, capability like Alexa Expense Tracker is mostly used for personal expenses, but I do envisage a future where people use Alexa or Siri to add and track their expenses. Given that voice technology is still very much in its infancy, I suggest restricting Receipt Bank’s investment into this area to a no more than $1m.
  4. Integrate more (and please don’t forget about Asia) – If I were Receipt Bank I’d probably use about $10m of the remaining fund to enter new geographies and integrate with additional systems. For example, I like how Sage’s Pegg hooks into any expenses you record on your mobile, whether it’s via Slack, Facebook, Skype, WhatsApp, etc. I don’t know whether Receipt Bank is looking to enter the Asian market, but I feel there’s great opportunity to integrate with messenger apps like WeChat and Hike, without spending more than $2m on development and marketing. Also, integrating with payment processors, like Finsync did recently with Worldpay, is an integration avenue worth considering! 
  5. But don’t forget about the current product! – I feel Receipt bank would be remiss if it were to forget about improving its current platform, both in terms of functionality and user experience. For example, I can’t judge how well Receipt Bank does in retaining its customers, but I feel there are a number of ways in which it can make the existing product ‘work harder’ (see Fig. 3 below). In my experience, some of my proposed improvements and features shouldn’t break the bank. By spending about $1m on continuous improvements over a number of years, Receipt Bank should have at least $20m left in the bank, as a buffer for difficult times and any new opportunities that might arise during the product lifecycle.

Fig. 3 – Suggestions to make Receipt Bank’s existing product work harder:

  1. Some touches of gamification – I’d argue that the longevity of the relationship between Receipt Bank and an individual user is determined by how often the users uploads bills onto the platform. I assume that most users will most probably not view managing their expenses as fun, I think it would be good to look at ways to make the experience more fun. For example, I could get a gold star from my accountant once I’ve successfully synced my month’s expenses into my accounting system. I feel that there’s plenty of room to reinforce the current gamification elements that Receipt Bank uses. For example, the message that Receipt Bank managed to save 27 minutes of my time doesn’t really do it for me (see Fig. 4 below). Instead, the focus could be on the productivity gain that I’ve made for billable work (if I’m a freelancer for example).
  2. Better progress and status updates – Even if it does continue to take up to 24 hours. to categorise and process my expenses, it would be great if Receipt Bank could make its “in progress” status more intuitive and informative.
  3. Clearer and stronger calls to action – For example, I can see that I’m not making the best use of my Receipt Bank subscription (see Fig. 5 below). However, there are no suggestions on specific actions I can take to get more value from my Receipt Bank plan.

Fig. 4 – Screenshot my Receipt Bank usage

Fig. 5 – Screenshot of my Receipt Bank “Usage summary”

Main learning point: Having thought about Receipt Bank’s current product offering, and my understanding of their target market, I suggest investing a good chunk of the recent investment into optimising the machine learning algorithms in such a way that both processing speed and accuracy are significantly increased. By doing this, the customer profile and behavioural data generated, will create additional opportunities to further retain customers and offer adjacent products and services.

Related links for further learning:

  1. http://uk.businessinsider.com/receipt-bank-raises-50-million-from-insight-venture-partners-2017-7
  2. https://venturebeat.com/2017/07/20/receipt-bank-raises-50-million-insight-venture-partners/
  3. https://itunes.apple.com/gb/app/receipt-bank-business-expense-scanner-tracker/id418327708?mt=8
  4. https://play.google.com/store/apps/details?id=com.receiptbank.android&hl=en_GB 
  5. https://www.forbes.com/sites/bernardmarr/2017/07/07/machine-learning-artificial-intelligence-and-the-future-of-accounting/#49bb42ac2dd1
  6. https://hellopegg.io/
  7. http://uk.pcmag.com/cloud-services/87846/feature/23-must-have-alexa-skills-for-your-small-business
  8. https://www.accountingweb.co.uk/tech/accounting-software/case-study-receipt-banks-rapid-growth
  9. https://www.finextra.com/pressarticle/70263/finsync-connects-with-worldpay-us
  10. http://www.bankingtech.com/520502/symitars-episys-core-system-integrated-with-amazon-echo-baxter-cu-an-early-taker/

App review: Curve

I recently heard Shachar Bialick – Founder and CEO of Curve – talk about how the new Curve app will make it easier for small businesses to manage their financial lives. It prompted me to have a first play with the Curve app in iOS, which is currently available as a Beta release. This is what I learned:

  1. My quick summary of Curve (before using it) – I expect Curve to be able to aggregate all my (business credit and debit cards – and related account / transaction data – into a single place.
  2. How does Curve explain itself in the first minute? – When I open the Curve app, I’m presented with two key messages: “Welcome to Connected Money” followed by “Curve combines all your cards into one smart card and smart app”. When reading these messages, “data” is the first thing that comes to mind. How will Curve combine and display all my bank data into a single place (and in way that lets me understand at a glance what’s going on)?
  3. Getting started, what’s the process like (1)? – When I tap the “Get Started” button on the app’s landing screen (see Fig. 1), I then need to enter my email address. By continuing through the rest of Curve’s onboarding journey I automatically agree to its terms and conditions as well as its privacy policy (see Fig. 2). I like the sound of the “magic link” – Curve sending me an email which lets me sign in with one click – over having to add yet another password (see Fig. 3).
  4. Getting started, what’s the process like (2)? – The screen which shows me the different Curve packages to chose from is great. It’s a clear overview, no frills (see Fig. 4). However, I’m unsure whether I’ve got sufficient data or information to decide which package is most appropriate for me. Also, can I switch from one package to another? If so, how easy is that?
  5. Getting started, what’s the process like (3)? – From providing more detail about my business to entering my card, the user experience feels very seamless and intuitive. I did, however, wonder why I did not need to enter then name of my business after stating that I’m a business owner. I expected some link to the Companies House details of my business, similar to Tide Bank’s onboarding process. Overall, the Curve app does a good job in trying to keep the onboarding process as simple as possible and the process of adding my first card feels straightforward too (see Fig. 5-6).
  6. Getting started, what’s the process like (4)? – The messaging around the card verification process is ok, but I’m nevertheless not entirely as to why my card issuer needs to provide security and I’m unsure as to how long this will take (see Fig. 7). I wonder what I can (not) do whilst I am waiting for my card to be verified? Will I need to go through a similar process when I enter an additional card that has been issued by the same provider?
  7. Getting started, what’s the process like (5)? – I’m massively intrigued by Curve’s new “Go Back in Time” feature (see Fig. 8). Curve lets its users swap purchases paid on one card to another. It lets users select the purchase(s) that they want change the payment method for. By tapping “Go Back in Time” under “Transaction Features” to bring up the menu, users can choose their preferred card for that purchase. This feature is available for any purchase under £1,000 with the Curve Mastercard within 14 days from purchase. I’m not 100% sure how long Curve will be able to hold one to this feature, as I can imagine the different credit card schemes getting up in arms about e.g. delayed payments or not being able to recoup initial payment transaction costs.
  8. Did Curve deliver on my expectations? – Yes. Although I haven’t yet been able to add multiple cards and see a combined view of transaction data for those different cards, Curve does a great job at explaining the onboarding process at every step of the way and uses some simple, but nice UX practices along the journey.

Fig. 1 – Screenshot of Curve’s iOS opening screen

 

Fig. 2 – Entering my email into Curve and agreeing to Curve’s T&Cs and privacy policy

 

Fig. 3 – Screenshots of Curve’s sign in process

 

Fig. 4 – Screenshot of ‘Which Curve are you?’ screen on Curve iOS

 

Fig. 5 – Information to enter during the onboarding process on Curve’s iOS app

 

Fig. 6 – Adding my first card in the Curve iOS app

 

Fig. 7 – Card verification steps on Curve’s iOS app

 

Fig. 8 – Welcome screen and Curve’s ‘Go Back in Time’ feature

 

Related links for further learning:

  1. https://breakingbanks.com/episode/removing-mystery-money-movement/
  2. https://www.imaginecurve.com/
  3. https://techcrunch.com/2017/07/03/back-to-the-future/
  4. http://blog.imaginecurve.com/go-back-in-time-with-curve/
  5. http://www.wired.co.uk/article/curve-time-travel

 

App review: Grip

 

Grip is a London based startup that specialises in “smart event networking software”. That sounds like a relevant problem to solve, because don’t we all have a (secret) love-hate relationship with ‘networking’ at events!?

Yes, I’d love to meet with interesting people at events but I hate approaching people randomly.

Let’s have a closer look at how Grip is looking to solve this problem:

My quick summary of Grip (before using it) – I expect an app that uses clever algorithms to suggest relevant people to meet during events.

How does Grip explain itself in the first minute? – The Grip homepage describes the tedium involved in networking at events, with attendees often failing to make the connections they’d hoped for. Grip’s value proposition is to remove this tedium by unlocking “valuable connections at your event, saving attendees time and hard work. We use advanced algorithms to recommend the right people and present them in an easy swiping interface that your attendees will love.”

Getting started, what’s the process like? – Grip uses natural language processing to connect event attendees based on interest, needs and other things they’ve got in common. I liked Grip’s ability to tell an attendee not just who, but also why they should meet someone, in the form of Reasons To Meet.

Grip users will be able to tailor the real-time recommendations they get by setting their own matchmaking rules. I like the element of Grip not totally relying on machine learning, but also giving users the opportunity to feed their preferences into category rules into the Grip dashboard. This will influence the matchmaking engine in real-time and improve the future recommendations for event exhibitors, delegates and sponsors.

I can imagine that the data around users’ acceptance or rejection of Grip’s suggested matches, will help in further refining the app’s recommendations. This reminded me about the review that I did of THEO recently. THEO acts a ‘robo-advisor’ and uses machine learning to provide its users tailored investment advice.

Integrating the Grip API – Apart from the app, Grip have also got their own API, which makes it easier for companies to incorporate event matchmaking capability into their website or apps.

Main learning point: Grip is taking a significant problem for event attendees and exhibitors, and is using machine learning to solve this problem in a real-time and personalised fashion.

Related links for further learning:

  1. https://grip.events/handsake-event-networking/
  2. https://www.eventbrite.co.uk/blog/event-tech-adoption-at-events-ds00/
  3. https://grip.events/ai-event-matchmaking/
  4. https://grip.events/7-secrets-game-changing-event-networking/
  5. http://event-profs.com/world-first-artificially-intelligent-event-technology/
  6. https://marcabraham.com/2017/04/19/app-review-theo/
  7. https://www.eventbrite.co.uk/blog/event-tech-startups-2017-ds00/

 

Lessons learned from Uri Levine, Co-Founder of Waze

Last Friday, I attended a talk by Uri Levine, Co-Founder of Waze, a community-based traffic and navigation app that was sold to Google for $1.1 billion. In a two-hour session, Uri shared some of his key learnings from the Waze startup journey; from starting from scratch to a successful exit. I felt that his talk was packed with valuable insights, and I’ve selected some key ones to share:

Focus on the problem – I loved how Uri concentrated on the problem that you’re looking to solve. He talked about problem solving being a key driver for him and the different startups that he’s (been) involved in. For example, Waze originated from Uri’s frustration with traffic jams … Uri then talked us through the “Adjusted Startup Curve” to illustrate the typical journey of a startup, starting with a problem to solve (see Fig. 1).

Fig. 1 – Knife Capital’s “Adjusted Startup Curve” – Taken from: http://ventureburn.com/2013/07/the-startup-curve-south-africa-wiggles-of-realism/

Don’t be afraid to fail – I always find it incredibly refreshing when other people speak openly about failures and not being afraid to fail. As Uri rightly pointed out, the fear to fail (and therefore not trying) is a failure in itself (see Fig. 2). He was also keen to stress that creating and managing a startup is never a linear, upward journey. By contrast, you effectively go from failure to failure, but you might win in the end – if you’re lucky that is (see Fig. 3).

Fig. 2 – Michael Jordan quote about failure – Taken from: http://www.quotezine.com/michael-jordan-quotes/

Fig. 3 – “Journey of Failures” by Douglas Karr – Taken from: https://twitter.com/douglaskarr/status/333027896241299457/photo/1

Passion for change – Uri’s points about entrepreneurs and their passion for change really resonated with me. I’m not an entrepreneur, but I feel that I’ve got some innate restlessness which is usually fed by change, learning and trying new things. It was interesting hearing Uri talk about how this passion usually doesn’t sit with well with fear of failure or loss. “Move fast and break things” was one of Uri’s mantras in this regard.

Honest validation of your ideas – As an entrepreneur, Uri explained, you need to fall in love with your idea. However, he also highlighted the importance of being able to critically assess your own idea. He suggested asking yourself “who will be out of business if I succeed?” If you don’t know the answer to this question, Uri explained, your idea probably isn’t big enough.

Iterate based on user feedback – Uri reminded me of the mighty David Cancel as David is also very focused on solving customer problems and listening to customer feedback (see Fig. 4). Like David, Uri didn’t get overly zealous about Agile or lean development methods. Instead, Uri talked about constantly iterating a product or service based on customer feedback.

Fig. 4 – David Cancel at Mind the Product conference, London 2016 – Taken from: http://www.mindtheproduct.com/2016/12/importance-listening-customers-david-cancel/

Main learning point: I found Uri Levine’s talk hugely inspiring; he was honest about the challenges involved in creating or working at a startup whilst at the same encouraging us to solve problems and try things.

Related links for further learning:

  1. http://www.tellseries.com/events/uri-levine/
  2. http://uk.businessinsider.com/how-waze-co-founder-spends-his-money-2015-8
  3. https://www.ft.com/content/49857280-8eaf-11e5-8be4-3506bf20cc2b
  4. https://www.crunchbase.com/person/uri-levine#/entity
  5. https://www.theguardian.com/media-network/2015/may/28/waze-uri-levine-tips-startup-google