This blog serves as a personal supplement for ENT3003: Principles of Entrepreneurship at the University of Florida. All class-related work will be posted here as well as a few personal, related follow-ups.
Monday, June 27, 2016
My Customer's Avatar
Friday, June 17, 2016
Alternative & Post-Purchase Evaluation
This week, I am analyzing how customers decide between alternatives and evaluate their experiences after making a purchase. Instead of focusing on the "green" customer again, for this assignment I am looking at the general iPhone using customer segment. This customer has an iPhone and has at least minimal knowledge as to how technology and apps work. They are capable of downloading apps and using them as they are intended. This segment doesn't have any specific demographics as there are many people of different ages, gender, background that use iPhones.
I've included my interview below. Again, I was only able to get one interview, but I found this one to be particularly insightful. I tried to ask generic user-experience based questions about app satisfaction because app experience is a major component of my concept. Recycle Rewards will be judged based on its functionality and content.
Interview
I thought it was interesting that the person I interviewed emphasized his dislike for ads and user data collection. My proposed app would feature a few small banner ads to generate some revenue, but I never had the intention to bombard users with pop-ups and spam. I know how annoyed I get using apps when ads keep popping up so I definitely would want to minimize this aspect. User experience is one of my main focuses with Recycle Rewards.
As for privacy concerns, most of my revenue generation would have to come from user content. The barcodes that consumers scan to track their recycling efforts would be compiled and sold to companies. Perhaps I can include a disclaimer that explains that this app has an opt out structure. This would mean that someone who is using this app is automatically signed up to have data collected unless they manually opt out. I know that this sounds a bit shady, but America has become a country of opting out and the importance of big data is huge nowadays. I think that younger users will be more willing to share their data in exchange for personalized experiences. Given the information I gathered from this interview, I may need to redefine my user segments.
The person I interviewed would fit into an older iPhone user segment and would likely use the app for the ecological benefits rather than for the personalized rewards. This user wants an easy-to-use application that meets their basic expectations and provides a smooth customer experience. The fact that Recycle Rewards will be free will probably appeal to this segment, especially if they are satisfied with the quality of this app.
Thursday, June 16, 2016
Catfe- A Portmanteau Experiment
Catfe (adj): used to describe a statement or phrase that is astonishing or unbelievable
Example: "You're telling me that it takes 24 trees to make 1 ton of newspaper? No way, that's so catfe!"
When I tried using this adjective at first, people would make faces of confusion but did not directly question it. For example, my coworker was telling a story about how she fainted once and I said how that was catfe and must've been so scary. Everyone in the conversation just looked at me kind of confused but nobody asked me to clarify. The first week, people kind of ignored my word, assuming they misheard me or that I unintentionally messed up what I was saying. As more time passed, people were catching on that I was using catfe on purpose, and I could tell that people were getting tired of me using this word. I used it at home once and my parents told me that it sounded dumb. I agree with them. A few others asked me what the word was and thought it was weird. After explaining this assignment, they understood more but still thought the word wouldn't really catch on.
I guess you could say that my little experiment was a bit of a failure. Nobody picked up my use of the word. That's probably because of the context and how weird it sounded in general. I think for a portmanteau to really catch on, it has to flow off the tongue and just feel natural, like chillax. Chillax is easy to say and the definition is easily discernible. Catfe definitely felt forced.
Looking at my experience testing my portmaneau, I felt really silly implementing my word in day-to-day use. I actually forgot to use it sometimes because it was such an unnatural combination of syllables. At the end of the day, this assignment did help me think more creatively. I also realized that not every idea you have will be a success, and that's OK. Use that information as a lesson to help you improve in the future.
Monday, June 13, 2016
Halfway Reflection
For this reflection, I am addressing "tenacity" and its importance. I'm finding it hard not to think of "Tenacious D" every time I hear tenacity, so I'll just include a picture and move on. Those of you who get the reference, you rock.
Three tips I would offer to next semester's students would be:
Friday, June 10, 2016
Need Awareness and Information Search
For this next assignment, I am focusing on the "green" customer. This customer segment encompasses all smartphone owners who would use Recycle Rewards for the ecological benefit. They are not using the app solely for discounts and retail rewards. Instead they are genuinely concerned about the health of the Earth and want do their part in making the world a better place. The age demographic doesn't really include a specific range. Anyone who owns a smartphone could have the drive to use this app to "feel good about doing good".
Unfortunately I was only able to record one interview this week, but one provides more information than none! I've attached the link below. I learned from this interview that even if a person thinks highly of recycling and values conservation, they still may feel like they're not recycling efficiently and may forget to recycle. Sadly, sometimes it takes litter on the ground or an animal eating trash to remind people that recycling is important. This probably has something to do with the principle of "out of sight out of mind". Recycling probably isn't constantly in someone's mind and because of that, we need to make recycling a habit.
Sometimes Waste Management provides residents with information on recyclables, but this isn't always the case. I have this thought that the recycling information search isn't very in depth or social, and if people have a doubt about if something is recyclable, they just throw it out in the garbage to be safe.
Interview 1
Based on what I learned about this segment, these potential users value the Earth and realize that it is important to conserve. They are aware that the Earth is in danger of being overrun with trash and want to help. Part of the issue is due to lack of information and the other part is due to motivation. The information search to determine what is recyclable may be easier for some depending on how a location handles their recycling. Someone who is given a "Garbage Gram" will have a much clearer picture of recycling than someone who is provided with no information.
Monday, June 6, 2016
Idea Napkin No.1
1. You.
Before analyzing my business concept further, I am taking a moment to focus on my skills, strengths and preferences. As an entrepreneur, my talents include my optimism when it comes to difficult tasks and my ability to creatively address situations. I have held a position as a Data Science intern for a local startup in the past, so I have seen how hard it can be to bring an idea to life and how much work is required. In addition, I have had experience brainstorming ideas with team members in FBLS, a business club at UF, and have been able to explore my creative, idea-generating side. Regarding my aspirations, one day I would like to own a business and grow it into a success. If I chose to actually pursue Recycle Rewards, I would want to dedicate all of my effort towards it. Since I know how much work it takes to create a startup, I wouldn't want to pursue an idea that I couldn't dedicate enough time and energy towards. I am a passionate person and pour my passion into anything I do, therefore I would choose to focus solely on my business concept.
2. What are you offering to customers?
With Recycle Rewards, I will be offering a platform to motivate people to recycle more while providing information for them to track their conservation efforts. I am hoping that my app will not only incentivize people through the rewards program but also educate them about the importance of their eco-friendly actions.
3. Who are you offering it to?
Recycle Rewards will be available to any iPhone owner. There is not a strict demographic for this app, as pretty much anyone can use it. All of my customers should share an interest in learning more about recycling and wanting to recycle more efficiently. They should also value retail rewards and the intrinsic satisfaction of making eco-friendly decisions.
4. Why do they care?
Although my customers do not have to pay to use Recycle Rewards, this app is valuable to them because it is a way to connect with national charities and foundations while earning rewards that they can translate into savings. Other companies that provide Recycle Rewards with the discount and coupon rewards benefit by generating brand awareness and sales. They also have the opportunity to purchase consumer data from us to learn more about what products people are purchasing and recycling.
5. What are your core competencies?
The features that set Recycle Rewards apart from other apps are as follows:
- Tailored reward system
- Up-to-date local recycling information
- Thousands of codes recognized
- Partnership with local and national environmental agencies, charities, and foundations
I believe that these elements of my business concept fit well together. I think that having a broad consumer base will allow for a larger potential market. This app appeals to people of all demographics and I think the core competencies will help draw people in and keep them interested. Combine that with my optimism and drive to execute tasks well, I think that my business concept has strong elements.
Reading Reflection No. 1
I couldn't have been more wrong with my judgements. The book was captivating, and Jobs' quirky and strange personality made the book very interesting. After learning more about Jobs' upbringing and life, I realized he was indeed a very unique person. The biography also helped me put into perspective the immense impact he had on the technological world.
1) I think what shocked me the most about Steve Jobs was that he was essentially a Buddhist hippie. When I think of computer scientists, I think of men wearing glasses and plaid shirts tucked into their khaki pants. Jobs was definitely not the stereotypical "computer geek", and I think that really set him apart. He was a brilliant man with a passion for technology, but that drive combined with his appreciation for the arts and spirituality created a unique perspective on technology.
I really admired Jobs' perseverance. When he was told he couldn't do something, he would go against all odds to do it. He was a man who knew what he wanted and worked hard to get it. On the other hand, I wasn't a fan of his management style and his lack of loyalty to close friends. I understand that you have to do things to be successful, but I am a strong believer in treating everyone fairly. When people would approach Jobs with their ideas, he would tell them that their ideas were awful, and then if he liked an idea, he would claim the idea as his own. In another situation, Jobs withheld shares of stock from Wozniak and lied to him about it. It amazed me how cold Jobs could be towards a loyal friend.
Steve Jobs definitely encountered adversity at times throughout his life. Being abandoned by his birth parents and adopted by a new family, Jobs faced adversity at a young age and experienced turmoil from the emotional pain it caused him. I think that this pain lit a fire in him to be a troublemaker and to go against the norms. Jobs would rebel against his teachers as a student, and as an adult, he went against the "norms" of the technology industry to create a huge transformation in the industry.
2) Jobs exhibited perseverance and saw the world in a different light. He saw opportunities where others did not and had the resources and knowledge to make things happen. In addition, he knew how to make a business successful and how to have an "edge" against competitors. Jobs was definitely ahead of his time. He was able to efficiently innovate changes in the computer industry that would've taken significantly longer to implement. His ability to see the big picture while also focusing on the details consumers valued was a huge contributing factor to his success.
3) One part of the reading that I found to be confusing was understanding some of the technical terminology. Jobs and Wozniak created many systems and programs in their time. Isaacson did a good job going into detail about the projects Jobs completed without being overly complex, but I still found it hard to understand some of the terms. Also, since laptops and iPhones are so common today, I found it strange to picture a "prehistoric" version of the technology we have today.
4) If I were able to ask Steve Jobs two questions, they would be:
- What was the most difficult project/experience you've had to deal with?
- Did you ever find yourself discouraged and close to giving up on your ideas? Why/How did you get over that slump?
I would ask Jobs these questions because I have often heard about how entrepreneurs face a lot of adversity. FBLS, a business club at UF that I am very passionate about, has had local entrepreneurs speak to our members, and each one talked about difficult obstacles they had to overcome and their moments of discouragement. Since Jobs had the mindset that anything could be accomplished, I wonder if he ever felt like some obstacles were harder to tackle than others.
5) I think Steve Jobs valued hard work, but he valued successful hard work more. He believed that the world had no obstacles and that anything could be achieved. If someone said a certain code was impossible, he would withhold that information from them and they would end up succeeding! The biggest obstacle is your own mind. I share that opinion that anything can be achieved as long as we do not create mental blocks. I find that when I am facing a challenge, the less I focus on how intimidating the big picture is, the more successful I am. If you do not know that something is unachievable, is it really unachieveable?
Friday, June 3, 2016
Elevator Pitch No. 1
https://soundcloud.com/user-948069494/pitch-1
Script:
My name is Carolyn Ward and my product is Recycle Rewards. I believe that this free app will be able to transform the meaning of recycling. According to Duke University, the average person throws out 4.3 pounds of garbage a day. That's about 30 pounds a week! Nearly 220 million tons of trash is disposed of in a year, and over half of that is sent to landfills. As the U.S.'s population rises, our waste generation rates will increase as well. See the problem here? We are close to living in our own waste. Once landfills become over full, land will have to be cleared to make room for more. You get the picture. Think of the barren wasteland in the movie WALL-E.
The problem is, a lot of people don't place value on the act of recycling and therefore don't make an attempt to recycle. So how do we counter that? Recycle Rewards not only will provide local and general recycling information to make recycling easier, but it also offers rewards for recycling. Our technology will feature a high tech scanner that recognizes thousands of barcodes and an intuitive platform for our users. The best way to get a dog to do something is with treats, right? So our goal is to incentivize people to take a minute to do something good for the Earth. The Earth benefits, and so do our customers.
Thursday, June 2, 2016
Tweaking the Innovation
Since I am planning on this app being free, I have to come up with alternative ways to generate revenue from it. I am hoping that I would be able to get local or national charities and foundations to pay a small fee to sponsor the app. In return their logos and organizations would be featured for donations on the app. This would also "legitimize" the app and hopefully draw in more users.
A large component of conceptualization is determining the product/service mix. As I've thought more about what I want my app to accomplish, I've come up with some potential revenue drivers their corresponding items. I provided a list below,
Revenue Drivers:
1. In-app advertisement sales
Items:
- Bottom(standard) banner ads
- Hyper-local targeted ads
- 1 month ad subscription
- 3 month ad subscription
- 6 month ad subscription
- 1 year ad subscription
- Ad upgrade fee
- Subscription extension fee
The bottom banner ads will appear at the bottom of select pages and would be the cheapest to purchase. Hyper-local targeted ads would cost a bit more and allow for more precise and tailored ads based on a user's location. These ads may take on the form of banner ads or full screen ads, but I want to limit the number of full screen ads my app features. I personally find full screen ads to be a turn off and I am sure many other people feel the same way. To me, user experience is more important than the extra cash I would make from selling more full screened ads.
For all of the subscriptions, a company selects which ad size and location they want. The subscription acts as a placeholder for the specific ad location and the company may update their ads as they please. I wanted to include a small ad upgrade fee to allow companies already in subscriptions to change their ad size and location. The subscription extension fee is self-explanatory.
2. Selling consumer data
Items:
- Basic consumer data package
- Advanced consumer data package
- 3 month data subscription (Basic)
- 3 month data subscription (Adv)
- 6 month data subscription (Basic)
- 6 month data subscription (Adv)
- 1 year data subscription (Basic)
- 1 year data subscription (Adv)
- Reduced extension fee for existing subscription
I plan to collect consumer information such as basic demographics, location, and product consumption data. When users scan their barcodes, we learn about what products they consume, what store they were purchased from, when they were consumed, etc. This information can be very valuable to retailers and can be used to provide a more customized experience for the individual customer.
The app will only offer two data packages. The basic package includes basic demographics such as age, location, gender, email address and the advanced package include the basics plus product consumption data. Both of these packages will be offered on a subscription basis, and subscriptions can be extended for a reduced fee.
3. Selling "reward" placeholders to companies
Items:
- 1 month subscription
- 3 month subscription
- 6 month subscription
- 1 year subscription
- Subscription extension fee
Companies can purchase subscriptions to have their discounts and coupons circulating in our rewards library. The company can update the coupons at any time or add new ones, and the app's data will assign rewards to users with matching consumption patterns. Through the reward system, users will be exposed to more products and coupons, which in turn can really increase brand awareness and sales for a company. I am still deciding how to split up the subscriptions and toying with the idea of creating packages based on the number of coupons/discounts a company wants in circulation at a time.
4. Charities and foundations pay to sponsor app
Items:
- 3 month subscription
- 6 month subscription
- 1 year subscription
- Subscription extension fee
My last revenue driver involves finding charities and foundations to sponsor the app. These organizations would pay a small fee to have their logos featured on the app and to have their organizations included as options to make a donation to. As users rack up rewards and/or in-app credits, they will be given the opportunity to put those credits towards donations. Organizations benefit from this revenue driver by getting their name out their and also earning donation money. The organizations are offered subscription choices for their sponsorship.
Choosing to focus on foundations first, an example of the the product/mix levels may be as follows:
Core: Foundations benefit from increased awareness and donations
Tangible: Foundation logos are featured on the app visibly and foundation names are listed under donation options
Augmented: The foundations are offered varying sponsorship subscriptions.
Looking at the other customer, businesses and companies, an example of the product/mix levels includes:
Core: Businesses benefit from brand awareness and increased sales from advertisements and coupons
Tangible: Coupons and discounts are displayed on the screen as users reach certain "checkpoints"; Ads are also displayed on various screens
Augmented: Companies are offered different subscriptions and choices for ad purchases and coupon placements.
Wednesday, June 1, 2016
Testing the Hypothesis, Part 2
Recap: Last week, I conducted five interviews to determine if my chosen opportunity actually exists and if my hypothesis is valid. I decided to focus on my belief that Americans are not recycling at full capacity and after interviewing some people, I quickly realized that other people felt the same way. All of the people I interviewed understood the importance of recycling on conservation, indicating that there truly is an opportunity there. For my solution, I proposed the creation of a recycling app that incentivizes people to recycle more and offers general and local recycling information.
Since I am at home for the summer and am currently transitioning into my internship this week and the next, I will not be conducting interviews. Also, I believe that it will be very difficult to find people with these opposing views as recycling is a widely-known concept and most people are aware of certain consequences on the environment. That being said, an entrepreneur should never give up on diligent research, so instead I will be conducting my analysis using online research, previous knowledge, and previous interviews (linked below) to draw conclusions.
Testing the Hypothesis, Part 1 Interviews:
As mentioned in the assignment instructions, it can be easy to perceive our opportunities as way larger than they actually are. Although recycling is a matter that really affects everyone, directly or indirectly, I will be careful not to extrapolate the importance and potential success of my product solution. I understand that there are many limits that can hinder the success of an idea. Some people may not share the same beliefs that recycling is important and can be improved. On the other hand, others may simply be too busy or just do not care enough to use my proposed app. I have taken these limits into consideration in determining what features to focus on to appeal to the majority.
Below, I have developed a table to help distinguish varying factors between potential users (Inside the Boundary) and nonusers (Outside the Boundary).
Inside the Boundary | Outside the Boundary | |
---|---|---|
Who is/isn't in | People who currently recycle or want to recycle better. | People who feel like recycling isn't important or that their efforts won't make a difference anyway. |
What the need is/isn't | This need deals with having motivation to recycle, an easier recycling experience, and assurance that recyclables will end up where they are supposed to. | This need isn't about changing recycling as a whole and implementing a new process. It is about making the current process more efficient. |
Why the need exists/doesn't | With consumption rates at their highest, we are constantly producing trash. When we don't recycle, we are polluting our environment and destroying ecosystems. The Earth is only so big and the more we throw out, the more space for landfills is required, due to the fact that the rate of decomposition is not as fast as our rate of consumption. | People may feel like this need doesn't exist because they think that they're already recycling well or just don't care about recycling. |
The following are websites I used as references to draw conclusions from:
http://www.recycling-guide.org.uk/importance.html
http://recyclenation.com/2010/03/case-against-recycling
http://www.care2.com/greenliving/5-reasons-why-people-dont-recycle-and-5-reasons-they-should.html
http://www.care2.com/greenliving/i-dont-recycle.html