In the past 2 years, FairFly, a travel-tech startup has been dominating the corporate travel industry with an amazing fare auditing service.
But like every good Cinderella story, this was not always the case. Before this company was the beautiful Disney character it is today, the blonde hair used to be a bit grey and dusty, the dress was practically an ugly Wix website just begging users to download the app.
This is the story of a pivot. When and why we decided to pivot and how we did it.
in the beggning of it’s life, FairFly was offering a very easy to understand product to it’s customers.
Give us your existing flight ticket you just booked
We will scan it for price drop
If the price drops, we will offer you the better price, and with your approval switch the flights and save you the gap.
So for example: if a traveler booked a flight in Expedia for $2500 3 weeks before the departure date, and the flight price dropped 2 days after to $1800 we will be able to save the traveler $700 (!!) pre cancelation fee’s.
The app we had was a simple MVP that simply asked our customers to upload the flight and approve the better price if found.
Sounds easy right? Why would anyone say no to an average savings of ~$300?
After a few months in the B2C world, we set ourselves with 2 major goals:
* The most important thing is validating our business model (CAC vs. LTV)
* The hardest thing is to get enough people to go through the process
* Instead of bringing the CAC down- I needed to find a way to get the LTV up
* Todd Sullivan wrote this:
* B2B has more value
* B2C value was for 12% of the market
* B2C value is only savings- for B2B is about managing things better, its about reporting, managing, controlling and monitoring and obvs. SAVINGS!
* Testing and analytics is taking most of your time- making it really hard to focus on the important stuff
* B2C features can be planed ahead forever, you will never know upfront how long something is going to take, since the first few versions are failing to deliver the value it intended to deliver
* 50% if not 75% of the features that you deliver will not lead to the outcome you expected to get
* A roadmap can kill the team- it set high expectations, and set the company to a huge disappointment
* A product manager knowledge of the constrains and the users- the day to day is sucking you down to deal with users story instead of designing the product business need
* Sometimes you run after your own tail- do things over and over again and expect to get a different results
* The agile is great. only problem is- it is so fast, it is built so strict, it is so daily, you can’t really stop for a second to think. (and don’t tell me sprint planning is thinking- its not, its just planning the planning. planning things to get them done as fast as possible)
* Engeneering needs to plan the product. they NEED to tell you what they think of each feature and each thing they are doing. if they are just coding- you are not using your engineer the right way
* You are thinking so much on the next release, you miss the big bang release.
* You are here to change the world, that is always right- but to change the world, you need money. and your investors money is not enough. you need to prioritize the money making features higher. always. they will later on give you the peace to deal with everything else that you were trying to do
* Lean startup is all about the fasted way to validate an idea. the way you work with B2C is never fast! never. it usually takes about 6 month to make all the round thoughts and that will kill the company. The opportunity cost is way to high
* Objective and Key Results- driving the team based on key results.
* The race after the MVP can and will kill you if you are failing to do it. MVP is something you need to be able to sale!
* you have to break things to the smallest possible features
* when you have a major enigma- try as many methods as possible and measure each one of them to understand which method worked best (FOMO or bigger incentive)
* Plan every single step of the users way. if he signed up, and if he didn’t, what happens after 2 days, 3 hours or 4 weeks. tell him what changed what is new and what he might be expecting to get in the next few weeks. This is a nice to say, but very very hard to implement.
* B2C is the one thing that gets you so much closer to the WHY in the golden circle
* You need to answer the basic questions: Why do you think the pain point you’re solving is painful enough that customers are willing to pay for your solution?
* Try to understand how exactly your service diffritiant than other services. what makes you unique- and emphasize it
* customer service is a major part of the produ