There are three customer segments; the first customer segment is the end user, which we have historically been labeling the “mass market,” due to the sheer number of users we aim to acquire. e2 is a free service, so the user base will not be a direct source of revenue; rather, users will fuel revenues from the second customer segment, Advertisements and Higher Education Lead Gen. The third customer segment consists of corporations.
This report gives an in-depth look at the the value proposition, market size estimations, experiments, and results of the “Corporate” customer segment.
Corporate
We conducted personal interviews, and leveraged accumulated industry knowledge already contained within select team members, to obtain the following information.
The value proposition for corporate customers is a specialized search tool with customized filters for corporate training and development departments. FREE courses that are developed from reputable sources would reduce training costs while expanding their learning content. A browser based learning management system would deliver tracking information to the existing corporate LMS system. The company pays a fee for use of Search/LMS.
We discovered that corporate LMS is already a very saturated market. Additionally, corporations are resistant to changing LMS once a particular system has been adopted, due to associated costs. Therefore, there is a high barrier of entry into market. Current LMS include tracking for compliance requirements depending on career track, and training classes provided by select vendors. They also house content, track learners progress, measure performance, contain proprietary training specific to the company, and much more. The interviewed company spends $60,000 per year on their courseware library and LMS. This provides use of the library, updates and use of the SAAS tool. They are also using a talent management system that will eventually replace the LMS.
Due to high competition and high cost of entry, developing a “new, better” LMS is not part of our business model. Instead, our LMS would need to simply feed into these advance learning management systems. This would get around the burden of adopting a new LMS.
Courseware tends to be sold into organizations either as a replacement of existing courses because of higher quality and or lower price. A low cost advanced search tool delivering Ivy league or equivalent quality FREE learning content would be of interest as long as proper controls and filters were in place. It would also need to replace/lower current spend, improve or deliver new content that fits new risk area. The fee charged by e2, based on customer interviews, would need to be moderately priced at $2,500 to $10,000.
Additionally, nothing has value in the corporate world unless it has an attached accreditation or certificate. Therefore, we will also need to establish a certificate program to provide the most value for corporate customers.
Obtaining the 12 million annual traffic visits requires substantial investment in traffic acquisition; industry standards suggest 24% of total revenue. Since the corporate market has the lowest cost per customer acquisition costs it may be the best starting point for us. We can readily identify these markets and target them with sales calls. While servicing corporate clients, we can slowly ramp up traffic acquisition.
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E2 (E squared) 
