This case study offers insight into how uTest developed its value proposition and successfully addressed the gain/pain ratio.
This is part of the Startup Secrets focus on Value Proposition development. For more information on this and other Startup Secrets focus areas, visit http://www.startupsecrets.com
1. Hi
Harvard innovation : Michael J Skok : Startup Secrets : Value Proposition
Harvard innovation lab lab
@mjskok
STARTUP
SECRETS
An insider’sCase Example: uTest advantage
guide to unfair competitive
Building a Compelling
Value Proposition
MICHAEL J SKOK
North Bridge Venture Partners
twitter: @mjskok mjskok.com
1
2. Hi
Harvard innovation lab : Michael J Skok : Startup Secrets : Value Proposition
@mjskok
Value Proposition Template
• For (target customers)
• Who are dissatisfied with (the current
alternative)
• Our product is a (new product)
• That provides (key problem-solving
capability)
• Unlike (the product alternative)
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3. Hi
Harvard innovation lab : Michael J Skok : Startup Secrets : Value Proposition
@mjskok
uTest
• For companies with web or mobile apps
• Who are dissatisfied with apps that work as
expected in the QA lab, but not in the hands of
end users
• Our in-the-wild testing
• Enables them to test their apps under real-world
conditions
• Unlike outsourced testing, which merely moves
the QA lab to a cheaper part of the world, but
doesn’t actually improve app quality
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4. Hi
Harvard innovation lab : Michael J Skok : Startup Secrets : Value Proposition
@mjskok
Gain/Pain ratio
•
•
•
•
•
•
•
Revenue
Cost savings
Time
People
Competitive advantage
Reputation
Etc..
•
•
•
•
•
•
Inertia
Switching costs?
Default = do nothing
Alternatives?
Good enough =
good enough!
RISK on a startup
•
•
•
•
•
•
Find (See)
Try
Buy
Implement
Deploy
Own – eg TCO
Pain
Inertia,
RISK
Gain
>10
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5. Before & After
Before: Test In The Lab & Hope
After: Test Where Your Users Are
Testing inside the lab is vital. But today’s web & mobile apps require a new approach to
augment lab testing: in-the-wild testing
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6. uTest: Gain vs. Pain
• Gain from uTest:
– Scale infinitely and immediately
- From 3 testers, to 30, to 300, and back to 0
– Lower total cost of testing
- EG: SMBs - unlimited testing for ½ the cost of one FTE
– Test under real-world conditions
- Live testers, real devices, imperfect conditions… in-the-wild
• Pain from uTest:
– More testing reports, creating more work
- Takes time to re-produce, vet and rate 50+ bugs
– More collaboration, creating more oversight
- Coordination between in-house & crowd testers
• Goal:
– Maximize in-the-wild testing, while minimizing overhead
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7. Gain vs. Pain Ratio
•
Tough to quantify precisely, but here’s what we’ve learned
Lower Escape Rate
by 75%
20:1
Make Testing Mirror
User Base
on cost + value basis
Launch Confidence
Higher Quality Apps
5:1
on cost basis
Cost Savings: 10X
Increased Overhead
Gain
vs.
Pain
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8. Sample Customer ROI
• Test latest version of Google Chrome across 300
highest trafficked URLs on the web
Traditional Outsourcing
vs.
uTest
Testers
8
Testers
30
Hours / Tester
40
Hours / Tester
10
# of Days
5
# of Days
2
# of URLs Tested
300
# of URLs Tested
300
# of Discovered
Issues
19
# of Discovered
Issues
129
Price
Price-per-Issue
$15,000
$789
Price
Price-per-Issue
$10,000
$78
|
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9. Hi
Harvard innovation : Michael J Skok : Startup Secrets : Value Proposition
Harvard innovation lab lab
@mjskok
START UP
SECRETS
An insider’sCase Example: uTest advantage
guide to unfair competitive
Building a Compelling
Value Proposition
MICHAEL J SKOK
North Bridge Venture Partners
mjskok.com
twitter: @mjskok
9
Notas del editor
For (target customers—beachhead segment only) Who are dissatisfied with (the current market alternative) Our product is a (new product category) That provides (key problem-solving capability). Unlike (the product alternative), We have assembled (key whole product features for your specific application).Moore, Geoffrey A. (2009-03-17). Crossing the Chasm: Marketing and Selling Technology Project (p. 154). Harper Collins, Inc.. Kindle Edition.
That is not surprising and the manufacturers and carriers are counting on it. ABI says we may see $133 billion in data revenue worldwide by 2014To me, given that even the old stogy medical industry is mobilizing quickly, I think that number might be conservative.I further base that statement on the fact that 40% of uTest’s business is now Mobile app related and that number is not restricted to games or consumer appsWe are seeing significant increases in apps for business, productivity and collaboration across all of the major device families.Now, I grant you that many of these apps start as outsourced projects for point solutions, but they are now becoming strategic, coming in house and becoming mission critical.