Case Study: Refining the value proposition for a student-career activities marketplace

One of my more exciting projects has been with a non-profit startup focused on helping low-income students access career-related summer activity programs. This service acts as a vital bridge between educational opportunities and the students who need them most. The organization's mission is to inspire Latino and African-American students from low-income families to participate in summer courses, activities, and internships that prepare them for college, with the ultimate goal of achieving economic upliftment and breaking the cycle of generational poverty. Despite not having a technical background, the founders successfully built a two-sided marketplace to achieve this, demonstrating remarkable dedication and creativity, particularly in how they bootstrapped their solution and overcame early challenges.

A Lean Approach Without Even Knowing It

Without realizing it, the founders had embraced lean product-building principles. They chose to develop their Minimum Viable Product (MVP) on Squarespace that allowed them to validate their idea without heavy investment and quickly. I was impressed to see that they had ingeniously repurposed Squarespace's blogging infrastructure to create “Program pages,” using search filters and tags to help students and parents find programs that suited their interests. On the provider side, they personally reached out to organizations in the region, and listing provider programs on their website on their behalf. This clever approach not only solved the cold start problem—a common issue for two-sided marketplaces—but also demonstrated their resourcefulness and commitment to the project.

A Weak Value Proposition and No Northstar Value Proposition

However, despite their progress, I identified a critical issue: the value proposition was still very weak and their product roadmap wasn't driven by a north star value proposition. Given that they were building a two-sided "activity" aggregator, I introduced the example of Viator, the world’s leading aggregator of local activity providers. (Viator offers tourists a curated selection of high-quality activities designed to inspire joy and create unforgettable experiences). To help them understand what an ideal value proposition for an aggregator site looks like, I deconstructed Viator’s value proposition to reveal the key promise pillars and the features supporting each one. This breakdown served as a benchmark, illustrating how a strong value proposition could enhance the non-profit’s appeal to both students and program providers.

Understanding User Pain Points

A key step in product management is understanding your audience and their user needs - both stated and latent. In this case, we needed to understand what are all the reasons that prevent school students from accessing the many career-focused experiences that are available to them today. We identified several key barriers that students and their families face:

• Lack of Awareness: Many students and their families are simply unaware of the programs available to them. This lack of awareness is compounded by inadequate marketing efforts from activity providers and the limitations of school counselors who often have too many responsibilities to effectively promote these opportunities. (1 counsellor for 500 students!) Additionally, students face difficulties in finding information about available programs, which further hampers their ability to participate.

• Lack of Role Models and Influencers: Another significant barrier is the absence of inspiring role models and influencers. In many poor Latino and African-American families, students lack adult guidance and influence in their lives, which can discourage them from pursuing career-related activities. Without someone to look up to or receive encouragement from, students may not see the value in participating in these programs.

• Low Perception of Value and Skepticism: Even when students are aware of programs, they may be skeptical about their value. There is often uncertainty about whether participating in these activities will genuinely benefit them, coupled with suspicion regarding the financial incentives of the providers. Many families also perceive high costs associated with these programs, further deterring participation.

• Lengthy Application Process and Lack of Follow-Through: The application processes for many programs can be lengthy and complex, posing a significant barrier to entry. This is exacerbated by issues with email communication, where important information might be missed or forgotten. Additionally, there is often a lack of follow-through, both from the students' side due to forgetfulness and from providers who may not offer personalized communication or adequate follow-up.

• Lack of Parental and Adult Involvement: Finally, the necessity for parental involvement in applications and participation can be a hurdle, especially in low-income families where parents might be juggling multiple jobs or other responsibilities. Adult oversight is often needed - right from helping complete the application to ensuring the students complete the program - but this can be challenging to secure, leading to missed opportunities for students.

  
  

By addressing these pain points, the service can better align its offerings with the needs of its users, ensuring that more students can access and benefit from the career-focused opportunities available to them.

Building the Ideal Value Proposition

Using the insights we gathered from analyzing user pain points and comparing with successful aggregator models like Viator, we co-created an ideal value proposition for this non-profit that speaks directly to the needs of its users—students and parents from low-income families. Here's how we structured the value proposition:

For the User

Students and parents from low-income families seeking high-quality career-focused activities.

Who Face These Problems

1. Lack of Awareness: Many are unaware of the available programs and opportunities.

2. Perception Issues: There is often unclear value, skepticism regarding financial incentives, and uncertainty about the benefits of participation.

3. Lack of Role Models and Influencers: Without adult guidance or inspiration, students may not pursue these opportunities.

4. Competing Priorities: Students and parents may have other pressing concerns that make participation challenging.

5. Application Process and Follow-Through: Lengthy and complex application processes often discourage participation, compounded by a lack of follow-up and communication.

6. Parental and Adult Involvement: The necessity of parental involvement in applications and participation can be a barrier, especially in low-income households.

7. Logistics: Challenges such as transportation can make it difficult for students to access these opportunities.

The Product

This non-profit is positioned as an activity aggregator website, designed to solve these issues and provide a seamless experience for students and parents.

Promises:

1. One Place to find activities that matter to you:

   • Find Multiple Activities: Aggregates activities from multiple vendors, making it easier for users to explore various options.

   • Provide a Great Search Experience: Equipped with advanced search filters and personalized recommendations based on student profiles, preferences, and program eligibility.

2. Make Confident Choices:

   • Structured Product Pages: Clear, well-organized pages that make it easy to understand each opportunity.

   • Past Student Reviews: Reviews from students, ideally from similar backgrounds, help build trust.

   • User Ratings: Allow students and parents to gauge the quality of activities.

   • Photos and Videos: Visual content that helps users get a real feel for the experiences offered.

   • Virtual Counselors: Provide guidance through the process, ensuring students make informed choices.

3. Easy and Safe Applications:

   • Help Finding Application Links: Ensures that students can easily find the application links they need.

   • Nudges to Remind Students: Gentle reminders to complete applications, overcoming the challenge of forgetfulness.

   • Streamlined Application Process: Simplifies the application process by reducing the need to sign up on multiple websites, re-enter credit card information, or deal with fraud concerns.

4. Incentives:

   • Highlight Rewards: Emphasizes available discounts and subsidies, making participation more accessible.

   • Subsidized Transportation Costs: Helps alleviate the logistical challenges that can prevent participation.

   • HopSkipWatch: A service to help students get safely between home and the activity center, further easing logistical concerns.

A Sobering Realization

The final step was to evaluate how much of this ideal value proposition was being delivered by the current website. It quickly became apparent that they were delivering very little of it. This realization was sobering for the founders but also empowering, as it gave them a clear roadmap for improvement. They now had a concrete understanding of what needed to be done to make the service truly valuable to its users. Long-Term Strategy: Evolving to a Three-Sided Marketplace

The platform is currently a two-sided marketplace, connecting students and parents from low-income families with activity providers offering career-related summer programs. While this structure is serving as a vital bridge to educational opportunities, there is significant potential to evolve the platform into a three-sided marketplace, incorporating a third crucial stakeholder: mentors.

Why Evolve to a Three-Sided Marketplace?

Through our discovery process, we uncovered a critical insight: many students and parents do not fully understand the value of these programs or how they can pave the way to college courses that could eventually lift them out of generational poverty. This skepticism is rooted in the lack of visible role models in their communities—college-educated individuals are often absent from their families and peer groups. While school counselors play a pivotal role in guiding students, the reality is that in many Title I and II schools, the counselor-to-student ratio can be as high as 1:500. This overwhelming ratio makes it nearly impossible for counselors to reach and effectively convince all students to take advantage of these life-changing opportunities.

To address these challenges and unlock the full potential of the platform, the introduction of a mentor network is a natural next step. This evolution to a three-sided marketplace can add significant value by providing students with the personalized guidance and inspiration they need to make informed decisions about their futures.

The Role of Mentors in the Three-Sided Marketplace

Mentors, as the third side of the marketplace, can take on various roles that directly address the gaps identified in the discovery process:

1. Inspiration and Role Modeling:

   • Former Program Participants: Mentors who have successfully navigated these programs and gone on to pursue higher education can share their stories, providing tangible examples of success. These inspirational stories can be a powerful tool in convincing skeptical students and parents of the program's value.

2. Application Assistance:

   • Virtual Counselors and Teachers: Mentors can offer personalized assistance with the often complex and lengthy application processes. They can help students craft compelling resumes, navigate application forms, and meet deadlines, ensuring that students don’t miss out on opportunities due to administrative challenges.

3. Webinars and Workshops:

   • Skill Development: Mentors can lead webinars and workshops on topics like resume building, interview preparation, and career exploration. These sessions would equip students with the practical skills they need to succeed, not just in securing a spot in a program, but also in leveraging these opportunities for long-term success.

4. Accountability Partners:

   • Ongoing Support: Mentors can serve as accountability partners, helping students stay on track with their commitments. Whether it’s completing an application, attending a program, or following through on post-program opportunities, mentors can provide the necessary encouragement and reminders to keep students engaged.

Moving Forward

This project was not just about refining a value proposition; it was about helping the the founders see the full potential of what they had built and guiding them on how to reach that potential. By leveraging product management principles, we transformed a well-intentioned but underperforming platform into one with a clear, compelling, and actionable value proposition that could drive engagement and growth.

I believe the non-profit is now better positioned to connect low-income students with the opportunities they need to succeed, just as Viator connects tourists with unforgettable experiences around the world.