Rill did a great job yesterday taking us through her innovative ideas for on-demand discounting. This is a big idea. As we discussed, the key is to get a MVP or concierge product going in a store test to collect behavioral data around the interactions between the shopper and her friends.
How many friends are needed to generate a 30% discount?
What types of friends / family members are contributing?
What is the viral coefficient? How many new users does each user bring to the app?
I think you can get some basic data using Breeze123.com as the circle of friends list and paypal as the payment engine. Find a store that is willing to let you hang out and talk to some customers. Try to get the customers to signup, signup their friends, and run your first 48 hour “sale.” Getting data around this idea would be fascinating.
Here’s you homework for this week.
Next week’s lesson is all about metrics. So, give some thought to you current business model hypothesis. List the top 3 most important metrics for your business. Bring them to class and be prepared to explain why these are most important.
See you next week!