OUR COMPANY

Business Case One-Pager

PRODUCT: PRODUCT NAME
Last Modified 1/20/09
Product Mission
To offer a TYPE product which provides NAMEclients better ability to retain their customers on our platform ....
(The product mission should be client focused, possible a summary of the value proposition; but always as simple and clear as possible – people should know what you are proposing after reading this.)
VALUE PROPOSITION
FOR
(the customer) / Clients (name) who are … with existing business on our platform; especially clients that …
WHO
(their problem/pain) / Lose revenue or revenue potential because their customers leave them and therefore our platform because ….
THE
(product name) / Product Name
THAT (key problem solving capability) / Provides a mechanism for any client who ….
UNLIKE
(competitors) / Other providers who have this option, don’t … or can’t …
OUR PRODUCT
(Differentiator) / Provides an easy way for ….
Metrics: How will we measure A+ success?
Success Metrics can include revenue, market share, new users, user activity, increased customer satisfaction (Net Promoter Score) such as:
  • Have subscribing clients lose 25% less customers 6 months after begin using.
  • 75% of clients interviewed during market analysis say final product delivers on value proposition.
  • This feature constitutes 10% of our page views 6 months after launch
  • Feature generates $200k revenue within first year which offsets our development and marketing/sales costs of $140k ($65k for development and $75k for marketing/sales)

Key Requirements
  • Very easy for customer to …
  • Very easy for client to …
  • (Market Window: Why now?) First version by July since opportunity window will close because early clients say will seek alternative solution if can’t deliver by Q3 (…. Other competitors are beginning to show up)

What is not included
  • The first version of this product will not cover these types of problems …

Market Analysis Activities
  • Proposed by large client; have done further research by …
  • Will propose to 5 other clients with prototype screen shots, refine and then propose to 5 more clients

Thoughts on Build, Buy, or Partner
  • We have talked with two of our suppliers about providing a significant portion of this solution to us as part of the existing tools we buy from them …. ; but as integration time may take as long as development time, we will probably build in-house

Development Budget Estimates and Explanation
One time development costs:
Assuming we do all development in-house, we need to deliver approximately 3 new web pages and some significant back-end functionality. After specification, the Dir of Engineering gave an approximate estimate of 5 man months to develop and test for an approximate non-burdened cost of $50k (5 * $10k/mth) plus 1 man-month management (product mgt, engineering mgt) $15k = $65k.
On-going administration costs:
Will be administered like other similar solutions using same internal company processes; other than reporting. Operations does not project significant new workload.
Marketing and Sales Plan
  • Go-to-market activities include: early customer program ($10k), launch promotion focused on (NAME) type of customers ($10k), advertising using Google Adwords at a cost of $2k/mth for first year ($24k)….
  • This will be sold as part of the normal sales cycle
  • The VP Sales has agreed to dedicating ½ full-time sales person to upsell to current customers for first 6 months (6 * ½ * $10k/mth) = $30k

Revenue Assumptions and Estimates
According to industry magazine … our clients lost 15% of their customers annually … if our clients can reduce that to 10% …
An important clients believes they can deliver the following:
They have a 250k customer universe – lose 10% of customers annually, mostly because of this problem – if can only lose 8% of customers means 5k customers/year at $50/client or client of this size can retain $250k of revenue.
For our company we make $5/customer/yr and current attrition is 10% so if can make that 8% within 1 year then (2% X 4M clients X $5) will be generating additional $300k/yr.
Licensing Estimates: $10k
With 100 potential clients; if we license to 20% of our client universe within first year …. … $200k
Other Key Assumptions
  • Cost of new product development including can be accomplished in less than 3 calendar months.
  • Legally and logistically operations can handle this solution like other similar existing

Thoughts on Workflow or Other Important Aspects of Product
Workflow thoughts:
  • Clients should be able to chose this solution right after ..
  • When their customers are about to .. we offer this solution