LocalPerks - Local Loyalty Coalition

Model: x-ai/grok-4.1-fast
Status: Completed
Cost: $0.098
Tokens: 274,360
Started: 2026-01-05 14:39

Section 05: User Research & Validation Plan

Comprehensive plan to validate LocalPerks assumptions via interviews, surveys, landing pages, and prototypes. Focus: Prove problem pain, solution fit, and business viability before MVP build. Target: 80% assumption validation rate within 8 weeks, $2K budget.

1. Key Assumptions to Validate

Problem Assumptions

AssumptionRiskMethodTarget
Independent businesses struggle to implement loyalty programs due to cost/time (avg. $5K+ setup).HighBusiness interviews70% confirm spending >$1K/yr on alternatives
Punch cards are fragmented/ineffective (forgotten 60%+ time).HighSurveys + observation65% report <20% redemption rate
Consumers default to chains for accumulating rewards (40%+ local spend shift).MediumConsumer interviews60% cite rewards as switch reason
Local shoppers want rewards but lack coalition options.MediumSurveys75% interested in unified local points
Businesses lose 20-30% customers to chains monthly.HighInterviews55% quantify >15% loss
Coalitions lack tools for joint loyalty (manual coordination).LowAssociation interviews80% confirm no shared system

Solution Assumptions

AssumptionRiskMethodTarget
Businesses will join coalitions for shared rewards (QR/phone signup viable).HighLanding page + interviews50% express interest
Consumers will download/use app for cross-business points.CriticalPrototype tests70% complete 3+ mock transactions
5% earn/5% redeem fees acceptable to businesses.HighPricing surveys60% accept at launch
Neighborhood density (20+ businesses) drives adoption.MediumFake door tests40% higher signup in dense areas
Coalitions will pay $199/mo for network tools.MediumInterviews5+ LOIs
Consumers redeem 60%+ of points cross-business.HighWizard of Oz sim50% in test

Business Assumptions

AssumptionRiskMethodTarget
Businesses pay $29/mo Basic tier.CriticalPre-orders10+ at full price
CAC <$100 via associations/LinkedIn.HighAd tests<$80 proven
Churn <15% post-pilot.MediumCohort tracking85% retention @3mo
LTV >$1K/business (24+ mo).HighSurvey projections70% project 2yr use
Consumer retention via redemptions (DAU/MAU >30%).MediumPrototype NPS>50 NPS

2. Customer Discovery Interview Guide (60-90 min)

Targets: 25 interviews (15 businesses, 7 consumers, 3 coalitions). Recruit via LinkedIn, Nextdoor, chamber lists. $50 gift card incentive. Record w/ Otter.ai.

Part 1: Background (10 min)

  • Tell me about your business/role and daily operations.
  • How do you handle customer retention/loyalty?
  • Biggest challenges competing with chains?

Part 2: Problem (20 min)

  • Walk me through last loyalty attempt (punch card/app).
  • How often do customers forget/use them?
  • Time/money spent on retention now?
  • Customer loss to chains? Triggers?

Part 3: Current Solutions (15 min)

  • What tools (Square/Toast)? Likes/dislikes?
  • Ever tried coalitions? Barriers?
  • What would make you switch?

Part 4: Solution (15 min)

  • Imagine earning/redeeming points across neighborhood businesses...
  • Most valuable? Concerns (fees/ops)?
  • Expect to pay monthly? Approve process?

Part 5: Wrap-up (10 min)

  • 1-10 pain score for loyalty gap?
  • Beta interest? Referrals?

3. Survey Designs

Screening Survey (Target: 300 responses, Typeform/LinkedIn)

  1. Business type? (Coffee/Restaurant/Retail/Other)
  2. Annual revenue? (<$250K / $250K-$1M / >$1M)
  3. Use loyalty program? (Yes/No) If yes, type/redemption rate.
  4. 1-10: Pain of competing w/chains on rewards.
  5. Time on retention monthly? (<5h / 5-20h / >20h)
  6. Interest in neighborhood coalition? Email for interview ($50).

Validation Survey (Target: 150, post-interview)

  • Problem frequency/satisfaction (NPS on current).
  • Message tests: "Earn local everywhere" vs "Rival Starbucks locally".
  • Van Westendorp: Price too cheap/expensive/ideal for coalition tool.
  • Demographics: Location, staff size.

4. Landing Page & Experiments

Setup: Carrd/Webflow page w/ VP: "Earn points at coffee shop, redeem at bookstore." Email signup, fake tiers ($29 Basic). A/B headlines:

  • "One App for All Local Rewards"
  • "Build Loyalty Coalition – Rival Chains Together"
  • "Neighborhood Points: Shop Local, Win Big"

Metrics: 1K visitors ($500 FB/LinkedIn ads targeting "small business owners" + "shop local"). >5% signup, <10% bounce. Fake door: "Join Coalition" button → waitlist.

Pre-Order: Stripe for $19/mo early bird (refundable). Target 10 conversions.

5. Prototype Testing

Recommended: Wizard of Oz (10 businesses/20 consumers). Google Form input → manual points sim via Airtable → PDF/email results. Cost: $0. Timeline: 3 weeks. Test QR flow, cross-redemptions. NPS >40 success.

Alt: Figma clickable for app flows ($200).

6. 8-Week Timeline

WeekTasksOwnerBudget
1-2: Problem15 interviews, 200 screening surveys, assumption doc.Founder$750 (incentives)
3-4: SolutionLanding A/B ($500 ads), 100 waitlist, validation surveys.Founder$800
5-6: Pay10 pricing interviews, fake door/pre-orders, Van Westendorp.Founder$450
7-8: PrototypeWizard Oz for 20 users, NPS/feedback, iterate.Founder$0

7. Go/No-Go Criteria

MetricTargetActualPass?
Problem validation80%+ confirm pain ✓
Landing signup>5% (50+) ✓
Price acceptance60%+ at $29 ✓
Pre-orders10+ ✓
Prototype NPS>40 ✓

8. Research Synthesis Template

  • Problem: Top pains/quotes/unexpected (e.g., "Punch cards clutter drawers").
  • Solution: Key features/ignores/UX (e.g., "Phone # signup essential").
  • Pricing: Optimal ($29 sweet spot), segments (small biz sensitive).
  • GTM: Channels (Nextdoor top), objections (density first).

Next Steps: If pass, pilot 1 neighborhood. Budget: $2K total. Tools: Typeform, Carrd, Otter.ai, Airtable.