Paradise Experiences : Lean Experiment Result

One the things which i did some time back was  working on validating an idea using the lean experiment appoarch. This is  for a start up which is run by my friend Ravi Hulliyapa called as Paradise Experiences and i helped with it during the weekends with my experience of Digital Marketing and understanding of Lean Experimentation.  This article attempts to showcase the approach of validating the hypothesis .

Geneisis Of  Hypothesis 

The hypothesis  was the result of a chance conversation with a couple of friends in the restaurant business . One of the ladies in the group suggested that it be nice if there was a service which offered custom dining experiences in a five star restaurant to celebrate their b’day or anniversary. This got the conversation into what else can be done and soon a package which consists  a) Candle Lit Dinner b) Ride in Luxury car was thought  as a good option. But i started questioning them that what we think as a nice option would be an option which appeals to a very small segment. The challenge was made to see how we can prove if the concept works or not without spending more than Rs 35k.  We decided to have lean experiment to prove and validate if there is demand.

Lean Experiment – Hypothesis

The hypothesis was that there exists good demand for such service. The only way was to offer a service like this to the general public and conclude that if there is real demand out there.  As we had no real idea of how to access the demand , we agreed that if after spending 35k Rs and we manage to get 20 people(essentially 1 lead at Rs 1700 ) to signup for a service then there is demand for this service. This number of 20 people  off-course may or may not be a good number , but since we could not agree on a method to access demand we thought we put a number to this else even after the experiment we would have no means to access if demand is there or not.Once the Hypothesis was choosen , we also chose some segments for which we thought that this offering can be useful.

Lean Experiment Setup

To validate the experiment we need to reach out to the target audience with an offering. As this is a lean experiment , no actual service or product was built , instead we built a simple website landing page for the mobile and desktop <Surprise Wife>  and then advertised to the target audience via Facebook.  As part of the workflow people could either call us on a number or leave a number so that we could call them back.  Essentially we would talk to the users who were interested in the service and walk them through the process and then once they are interested in sign up , we would say that the service is yet to be fully launched and this is a test marketing . A lead is qualified lead if  he/she is willing to avail the service , but the service did not exist during the validation phase. That is why it is called a lean experiment.  So overall effort was to build a landing page , market the concept to the target audience via Facebook and then get the results

Targeted Advertising

One of the real advantages which we had was that, we could do  great targeting of the ads via Facebook. Essentially the service was a luxury service , so did not see a point in advertising in general via Google Ads as we really wanted fine control of the audience. This is where Facebook shines as we are able to fine tune to a great extent . As an example one of the segment was married men in Bangalore having income higher than 15 Lkhs/month.  We could not get this from Facebook but we chose  answer the income question via targeting to Iphone4s+ users only . Thus one  the segments we chose looked like this

a)   Male  Age- 29 to 40 years

b) Married

c) Users of Iphone 4s and above (iPhone 5,iPhone 5s, iPhone 5c and iPhone6)

Experiment Results

We ran the campaign in Bangalore across various segments spread around a month ! . During this time we  experimented with Rs 1k as the Facebook budget for the day  and here are the results.

–  Rs 17k on Facebook Advertising

– Got  708 people of the Target audience to visit our page

–  Average Cost per click was Rs 24

–  Got 10 sign-ups  , whom we has to apologize as we really did not have the service ready during the lean experiment.

Summary 

After spending 1 month and Rs 17k on Facebook advertising we figured that there is demand for such a service in Bangalore . Ideally we should have spend all the money i.e Rs 35K and got 20 leads , but we decided to call off the experiement because of the positive response which the experiment managed to gather during the 1 month.  The whole concept was validated in around 2 months time frame as we spent quite a bit of time on building the landing pages , brand name , website etc.  But as you can see the whole idea was validated without actually having to offer a service or build a product or service. This is the magic of lean experiments . Lean experiments can be done in every phase of the product , but this was an usecase where we used to validate the business idea . Ravi has now launched the service  based on all the feedback gathered during the 2 months of experimentation. Those of who are interested in the service can check it out at <Paradise Experiences>

Do leave your comment below should you have comments on the experiment . You may also get in touch with Ravi Huliyappa for further details on the business.


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