Agile In Everything Web And Mobile – AgileStorm

When Android and iPhone came out, hundreds(if not thousands) of entrepreneurs must be thinking of of building a location-aware mobile shopping application:

• shop in store, use the phone camera to take a picture of of a product’s barcode, get back real-time pricing info
• type in the product you want, have the application search for the products close by your location, and then directly go to the store and buy

This all sounds very cool.  But where can you get real-time product pricing and inventory information?  You don’t want to mislead users to a store that doesn’t have the product in stock or has the incorrect price
Good luck in asking all the big retailers to give you real-time pricing and inventory info.  If you don’t have a significant amount of users, they don’t care (unless you won some developer contests like ShopSavvy).   But if you don’t get this kind of info, you won’t be able to attract users.   A typical chicken and egg problem.

Well, I went to the landing your first customer SVASE event and learned from Scott Dunlop from NearbyNow how he successfully solved the chicken and egg problem of attracting users and retailers back in the days(even before all the GPS-enabled phones came out).

Scott talked about how his wife loves to shop at mall and how he hated spending hours at mall.   He wanted to build an application that helps mall shoppers to quickly locate the products they want.  The way he did the user research was just plain simple but effective:  buy some pizza, give them out for free in mall during lunch time in exchange of people telling him what they want in their mall shopping experience and their pain points.

Thinking all along of how to get the real-time pricing and inventory info, one day he found the mall operator sign, he realized that retailers in mall have strong relationship with mall operators.  And there are only few mall operators in the US.

Through his well-connected friends(Scott has a good track record in building successful companies), he pitched to the mall operators to build a mall directory mobile application that a user can easily use to navigate the mall and locate products they are looking for.  Every retailer wants to be on that directory because no retailer wants only its competitors to be seen by customers.  They are also willing to provide real-time data to drive customers into their stores.  Therefore, mall operators are the catalysis to help NearbyNow acquiring retailers as customers.

Users can use NearbyNow to search for product pricing and availability within their area, reserve the products(store associates will be notified and get the products ready), and go to stores to try them out.

NearbyNow works particular well with products that users want to try out in person(clothes, shoes, jewelry) and that are very hot selling and with limited stocks(wii)

The real nice thing about NearbyNow is it bridges online and offline shopping(online->mobile->location) as it can drive and track online leads that turn to offline leads and sales.

Its business model:

• cost per customer driven to a store
• sponsored listing of products from retailers in the mall where the user is currently at

Since NearbyNow gets the real-time data which no one else has(eg: shopping.com), it’s another gold-mine that it can easily monetize(eg: build a API for accessing the info.  Tons of mobile applications would love to access).  In fact, thefind partners with NearbyNow to offer product reservation in local stores.

After reading the NearbyNow story, have you be inspired to find any catalysis to solve your chicken and egg problem?

admin Entrepreneur, Mobile Business model, Customer Acquisition, Local Shopping, Location Aware, NearbyNow, Shopping

Notes and thoughts from Startup-U SV: Landing your First Customers with CEO’s Scott Dunlap, Mike Maciag (Electric Cloud) & Dan Steere on Jan 27th, 2009:

• Customers often tell you a thing or two that you don’t know( customers are smarter than you think)
• It’s a brutal reality that people/companies are only willing to pay for must-have products
• Products that help people cut off cost, expense, operation cost and optimize on resources will excel
• Everyone should be a product manager.  Everyone should be in a customer call every month to understand customer’s pain-points and problems( this is so true, but few companies are doing it.  Many startups are very engineering-driven that there is a big disconnect between engineers and customers)
• Scott from NearbyNow shared how he solved the problems of getting the first retail customers on board with his location-aware shopping system( his lesson deserves a separate blog post from me).

Enterprise Sale

• For enterprise products, don’t give free pilot(or trial).   You force customers to consider pricing in the conversation.   It will also force higher-level management people to look at the product when it involves money transaction
• If you do give out free trial(100% discount), don’t tell any one
• Publicize the ROI if it’s met.  Case study is important
• Always ask people how it’s going(eg: proper account management, don’t just let it run on auto-pilot)
• Your first few customers may force you to change your business if you customize too much for their needs
• You should try to find out what initiative your customer is having.  Then try to attach your service to their initiative.

This was one great panel discussion.

admin Entrepreneur Customer Acquisition, Customer Management, Product management