Project Everest

Adopted Experiment

[Adopted Experiment]: Fuel Timor-Leste February 2019 - Stove Sales

Lean Phase: Solution, Revenue Streams

 

Assumptions: People living in Dili suburbs are willing to put down a full deposit on a stove.

 

Time Box: February Month

 

Key Metrics: Conversion rates of people who are approached by PEV, who then put down a deposit

 

Success Points:

Green Light Proceed: Continued sales of stove. Move to improving customer engagement, market reach, and channels

Success Point: 30% or more of people approached face-to-face will place a deposit for a stove

Orange Light Optimise: Why are people hesitant to buy a stove? What part of their value proposition are we not fulfilling? What are their main blocks? Does the stove require a new design? Is the stove too expensive?

Failure Point: 5% or less of people approached face-to-face will place a deposit for a stove

Red Light Failure: Look to further lower the price of stoves by identifying particularly expensive sections of the supply chain, and lowering them. Think about different channels to reaching customers. Re-evaluate customer archetypes. Reconsider the value we present to potential customers.

 

Experiment Build:

This can be run alongside two experiments: Customer Engagement and Price Testing.

Once an original offer test has been successful, the customer should be recorded as interested. The customer should then be asked if they would pay $80-100 for the stove, with the exact price pending on the final cost of manufacturing the stove. Should the price test be successful at this point, a deposit of 10% should be asked for.

Should the sale be unsuccessful, the reasons why not should be discussed and recorded. The most prominent block thus far, has been a hesitancy to place a deposit without seeing the stove. A prototype should be taken when making sales, for locals to try out. Customer engagement can be recorded at this stage (https://projecteverest.crowdicity.com/post/894780).

Since locals will not be able to take the prototype stove, there must be a guarantee made to them about when they receive the stove. Whilst PEV are in-country, the stoves are able to be manually delivered, but distribution channels must be created for off-months (link to be posted later to distribution channel experiment). Based on the reliability of manufacturers and distribution channels, a period for which the customer is guaranteed a stove by can be created. Currently, this guarantee should be for the end of July. After this date, the customer can choose to get a refund.

edited on 28th May 2019, 12:05 by Lucy Preiss

Andrew Vild 5 months ago

Test.

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Rose Gooding 5 months ago

Status label added: Proposed Experiment

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Rose Gooding 5 months ago

This is a good experiment. Some sort of build in terms of how to actually get this to happen e.g. adding them to a facebook group, some sort of guarantee of product by a date and approx 50% of price deposit will be key. Once this is developed please add in the comments. This will be crucial before running this experiment

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Thomas de Heus 5 months ago

Hi Rose,
We're looking into this currently. As the upfront cost of a stove is very daunting for low income families, we are brainstorming a way we can effectively manage deposits and payment plans in the short term. We will update this experiment once we have a strategy for how we can handle this.

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Rose Gooding 5 months ago

Status label added: Experiment adopted

Status label removed: Proposed Experiment

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