The brainstorming sessions were structured following guidance from authors Jeanne Liedtka and Alex Osterwalder in their books "Design for Growth" and "Business Model Generation," respectively. We also adapted insights from other authors like Tim Brown, Donald Norman, Jake Knapp, Anthony Ulwick, Nigel Cross, among others. In my own words, a designed brainstorming is a session framework used by one or more facilitators to set problem boundaries for generating solution ideas, aiming to maximize the chance of effective outcomes. These brainstorming designs provide participants with sufficient information to:

  • understand the exploratory information and questions that led to the selected business hypotheses supporting the ideas to be generated;
  • get to know the personas representing potential target users of the generated ideas;
  • identify the tasks, pains, and expectations targeted users seek to fulfill by using the product or service related to the generated ideas;
  • grasp the success metrics (product or service purpose, organic and digital perceptions, organic and digital functional attributes, organic and digital constraints) to be used in future tests of the generated ideas;
  • visualize how the brainstorming will function.

The concept development tool ensures that the ideas generated in brainstorming sessions, akin to "loose Lego pieces", are carefully analyzed to avoid wasting potentially excellent concepts.

Drawing from references like "101 Design Methods: A structured approach for driving innovation in your organization" (by Vijay Kumar), "Designing for Growth" (by Jeanne Liedtka), "Change by Design" (by Tim Brown), "Solving Problems with Design Thinking" (by Jeanne Liedtka), and "Sprint: How to solve big problems and test new ideas in just five days" (by Jake Knapp), my two co-founders and I established rules to ensure that the products of merging these "Lego pieces" - which we called generated concepts - adhered to what was previously established in the brainstorming designs.

Generating concepts was, in a sense, a new brainstorming, carried out through individual and group sessions to maximize the number of concepts generated, totaling over 30. Additionally, we standardized the formats for presenting concepts so that all presentations clearly provided the necessary information for future analysis using the Positioning Mapping tool.

In light of the information previously defined in the brainstorming design, which generally includes functional attributes, user perceptions, and success metrics, the Positioning Mapping tool should adhere as closely as possible to these defined aspects. By following this guidance, we avoid prioritizing criteria that diverge from the initial business plan and the hypotheses that formed the ideas generated in the brainstorming sessions.

The Positioning Map is also known as a Prioritization Matrix because concepts are organized in a matrix with scores based on predefined criteria. We confronted each concept with items from the brainstorming design, as well as aspects desired for the business based on the previously generated, particularly validated, business hypotheses. From this matrix, we defined the initial aspects of the winning concept, the Startup that would be developed.

By systematically applying these tools, we selected concepts that best met the guiding criteria of our design. These concepts addressed, non-exhaustively, the following aspects (note that this study was executed in 2016):

For Consumers:

  • Accuracy and ease of receiving offers;
  • Increased bargaining power as sellers compete with offers;
  • Empathy in resolving customer problems.
What the concept aimed to solve for Consumers:
  • Offers presented by establishments in a "menu" mode had too many options, making it difficult to decide;
  • Significant effort required to find the best cost-benefit offer before going out or ordering something at home;
  • Lack of empathy and/or interest from many establishments in resolving customer problems.

For Establishments:

  • Proactive search for customers, negotiation, and flexibility;
  • Feeling of partnership with customers;
  • More sustainable and "win-win" commission;
  • Efficient customer acquisition based on "real-time" needs.
What the concept aimed to solve for Establishments:
  • Passive search for customers and inflexibility in offers;
  • Declining models of coupons and group purchases;
  • No control over when the product will be acquired.

In the prototyping phase, we delved into a series of exploratory questions to evaluate and comprehend various aspects of the prioritezed (and tested) concepts. The following sections present these questions, along with categorized insights gained during the prototyping process.

Section 1: General Exploratory Questions (value, feasibility, marketability, scalability, competitiveness)

1.1: Questions to understand the perceived value by customers (Why would they buy from us?)
1.1.1: Regarding End Consumers

  • Are potential customers seeking ways to save money on out-of-home leisure activities?
    (Insights: Data from research indicates that people are spending less on entertainment due to reduced purchasing power, potentially leading to a demand for cost-saving solutions.)

  • Would customers find value in a one-tap-to-go tool that quickly finds affordable leisure options?
    (Insights: Interview data revealed that customers struggle to decide on cost-effective leisure options, indicating potential value in an easy-to-use, one-tap solution.)

  • Are customers willing to compromise on their preferred venue in exchange for discounts elsewhere?

  • Are customers willing to invite friends to obtain group discounts?
    (Insights: Customers expressed varying willingness to invite friends for group discounts, with some indicating interest in the concept.)

  • Do customers trust secure online payment methods?

  • Do customers value getting offers they have paid for, expecting establishments to honor them?

1.1.2: Regarding Establishments

  • Would establishments offer discounts for groups or based on the proposed spending by users?
    (Insights: Establishments' interest in offering group or user-based discounts varied, highlighting potential opportunities for partnerships.)

  • Do establishments value having a consistently busy venue? (Insights: Most establishments expressed interest in consistent customer flow and marketing opportunities.)

  • Are they interested in quickly acquiring new customers?

  • Would they consider having someone manage the app's usage?

  • Are they seeking ways to provide personalized customer experiences?

1.2. Questions related to execution feasibility (Can we execute and sell it at a viable cost?)

  • What critical capabilities are missing, and who should be our partners to execute the business?

  • Can we operate with a relatively small team initially?

  • Do we have the ability to handle online payments?

  • Can we hire marketing and sales teams?

  • Do we have adequate marketing support to attract enough establishments for successful traction?

  • Do we have the necessary legal support for potential issues?

  • Can we secure payment partners such as PagSeguro, Paypal, Stripe, etc.?

1.3. Questions on scalability (Can we produce at a viable volume/cost?)

  • Is the platform scalable enough to handle a high number of users and establishments?

  • Do we have a cost-effective hosting solution in place?

1.4. Questions related to competitiveness (Competitive barriers)

  • Are we vulnerable to easy imitation by competitors, and how would they react?

  • How would potential competitors be affected, and how might they respond?

Section 2: Specific Exploratory Questions for the Business

2.1: Questions Addressing Main Objectives Met by the Concept

  • Is planning and organizing outings with friends more complicated than it seems?
    (Insights: Customers expressed difficulty in organizing group outings due to diverse interests, availability, and budgets.)

  • Do users find it inconvenient to receive suggestions that don't match their preferences?
    (Insights: Customers value receiving precise and relevant event suggestions, minimizing discomfort with irrelevant recommendations.)

  • Will the concept be safe, reliable, and user-friendly with minimal steps?

  • Can it create network effects that promote viral growth?

2.2: Questions about the assumptions supporting how and why the concept meets objectives

  • Do people struggle to organize outings due to differing interests, availability, and finances?

  • Do users prefer receiving fewer but more accurate suggestions?

Section 3: Critical Exploratory Questions for Business Attractiveness

3.1: Questions that address potential success or failure factors:

  • Are customers actively seeking ways to save on out-of-home leisure?
    (Insights: Data and interviews suggest a demand for cost-saving solutions due to financial constraints.)

  • Are customers willing to make additional efforts to invite friends for group discounts?
    (Insights: Customers' willingness to invite friends varied, with some open to the idea of group discounts.)

  • Are establishments willing to offer discounts to groups or based on user spending?
    (Insights: Establishments' interest in providing discounts based on groups or user spending varied.)

  • Are establishments open to having someone in charge of managing the app (or eventually many others apps besides ours)?

3.2: Questions about the right timing to present the idea:

  • Are moments of economic downturn, available technology, lack of equivalent solutions, and target audience characteristics favorable for the concept?

  • Is scalability a concern for the future but not a priority?

Section 4: Categorizing the Exploratory Questions

4.1: Exploratory questions to be categorized

  • Will customers always want discounts to return to that establishment, or will they come back on other occasions paying the full price?

  • Does bringing in genuinely interested people in the product/service increase the chance of loyalty?

  • Can discount hunters potentially harm the business by reducing the loyalty rate?

  • Will our service foster customer loyalty? Will it bring them back?

  • How does the target audience perceive bars, restaurants, and other establishments that offer discounts to their customers (are they well-received or poorly perceived)?

  • What kind of discounts does the target audience usually ask for when interacting with an establishment?

  • How do the variables influence the likelihood of our target audience returning to a bar that has offered a discount?

  • Will the customer see value beyond the discount? Will they feel a sense of partnership with the establishment for accepting the proposal?

  • Will it be good advertising for the establishments' image?

  • What could turn the target audience into recurring customers of a bar, restaurant, or other establishment?

  • What makes people come back to an establishment?

  • By accepting, will the establishment give the idea of being desperate for customers, being empty, and having low quality?

  • Will our service foster customer loyalty? Will it bring them back?

  • Can the establishment control the flow of people?

  • Can the establishment still be profitable even with discounts?

  • Will customers always want discounts to return to that establishment, or will they come back on other occasions paying the full price?

  • Is the strategy to attract many customers to the establishment, or is it more about "seizing" an opportunity that arises (from the establishment's perspective)?

  • Will the customer accept and use a platform where they actively search for discounts?

  • Would the customer be willing to make a little more effort to invite some friends to obtain discounts for groups?

  • How many of those who use a coupon would have come anyway?

  • How many of them return after using the coupon?

4.2: Categorization methodology as regards to team's maturity

  • What we know?

  • What we don't know but we could know?

  • What we don't know and can't know before testing it on the market itself?

4.3: Categorization methodology as regards to required validation type

  • Validation through desk research.

  • Validation through interview.

  • Need prototyping tools to be validated.

  • Need "learning launch" (controlled launching on the market itself to gather real data as it goes) tools to be validated.

Section 5: Data-Driven Insights and Prototyping Findings

5.1: Questions Validated Through Prototyping

  • Validated: Customers value cost-saving options and personalized recommendations.

  • Validated: Establishments are interested in offering discounts for group bookings.

  • Can Be Validated Through Interviews: Understand about customers' willingness to actively use a discount-seeking platform.

5.2: Prototyping Insights and User Journeys

We mapped out various user scenarios encompassing both individual and group interactions as regards to food service and out-of-home leisure contexts. This intricate web of user experiences delved into eight distinct usage situations. Among the multitude of paths we explored, several insights and exploration questions emerged.

Consumer's Path:

  • Desire/Need: The journey kicks off with a desire or need (e.g. friend invitation to hang out, motivated by hunger, ...).

  • Specifying the Desire/Need: Users proceed to specify their desire or need, shaping their intent.

  • Where Can I Buy?: The quest begins to find suitable options for fulfilling this intent, which may involve physical stores or online options.

  • In-Store/Online: Users navigate between physical stores or the vast online marketplace.

  • Online Search/Option analysis: Google and other online search engines come into play, aiding users in their quest. The user, now well-informed, delves into option analysis, meticulously comparing prices and assessing the cost-benefit ratio.

  • Decision Time: Armed with data, the user reaches the pivotal decision-making juncture.

  • Payment: The chosen path leads to a transaction, where payment is made.

  • Order Tracking: Users engage in order tracking, ensuring visibility into their purchase's progress.

  • Receiving the Goods: Finally, the awaited moment arrives, and the user receives the purchased goods.

Establishment Representative's Path:

  • Financial Motivation: The journey commences with the establishment's aspiration to generate revenue.

  • Inventory Management: The establishment executes one or more tasks/processes on managing its inventory efficiently.

  • Price Definition: Pricing strategies are carefully formulated to attract customers, considering offline and online strategies as well as digital marketplaces and their respective fees.

  • Online Offering: The establishment takes its offerings online, reaching a wider audience.

  • Order Reception: Orders start streaming in, requiring prompt attention.

  • Payment Confirmation: The establishment confirms payment receipt.

  • Invoice Generation: Invoices are meticulously generated, ensuring compliance with regulations.

  • Product Preparation: Preparations for product delivery commence.

  • Tracking and Delivery Confirmation: Vigilant tracking ensures a smooth delivery process. The establishment receives confirmation of successful delivery.

This insightful journey mapping exercise, grounded in real-world experiences, paved the way for our business questioning. By aligning user and establishment needs, we found sweet spots that promises exceptional value. These findings have been instrumental in steering our prototyping process.

Section 6: Information About Coupon and Discount Companies

In 2011, shortly after the coupon companies' boom, some doubts arose regarding this business model, specifically concerning GroupOn (more about).

A summary of how the platform works: GroupOn offers a way for people to come together and purchase discounted products. The establishment provides the promotion, which would only be valid if a certain number of people made the purchase. This provided security, customer flow, and marketing for the establishment, while also giving the customers satisfaction from receiving discounts.

The main points raised by analysts were:

  • The coupon scheme is great for attracting new customers but terrible for retaining them.

  • The establishments completely cut their margins, paid a significant fee to GroupOn, and didn't receive any return from the customers, who only went for the big discount.

  • Some establishments became overcrowded due to the discounts, resulting in a decline in service quality, leading customers to become dissatisfied and spread negative reviews on platforms like Yelp.

  • Consequently, users began to perceive: "If the establishment is on GroupOn, then it must be bad."

  • The model wasn't defensible, leading to the emergence of hundreds of competitors.

  • Another annoyance for users was the flood of emails sent by GroupOn and others. It might be nice at first, but eventually, you receive 15 emails per day and can't stand it anymore.