LocalPerks - Local Loyalty Coalition

Model: openai/gpt-4o-mini
Status: Completed
Cost: $0.065
Tokens: 167,160
Started: 2026-01-05 21:23

Validation Experiments & Hypotheses

Hypotheses

Hypothesis #1: Problem Existence 🔴 Critical

We believe that solo founders and bootstrapped entrepreneurs will actively seek viability analysis tools if we provide them with tools to validate a new product idea. We will know this is true when we see 60%+ of surveyed founders confirm this is a top-3 pain point AND 5%+ landing page signup rate.

Risk Level: 🔴 Critical (product fails if wrong)

Current Evidence: Supporting: Forum discussions, search volume, competitor traction; Contradicting: None identified; Gaps: No direct user interviews yet

Experiment Design:
  • Method: Customer discovery interviews + landing page test
  • Sample Size: 20 interviews, 1,000 landing page visitors
  • Duration: 2 weeks
  • Cost: $500 (ads) + 20 hours (interviews)
Success Metrics:
Metric Fail Minimum Success Home Run
Problem confirmation rate <40% 40-60% 60-80% >80%
Landing page signup <2% 2-5% 5-10% >10%

Next Steps if Validated: Proceed to solution validation

Next Steps if Invalidated: Pivot to adjacent problem or exit

Hypothesis #2: Solution Fit 🔴 Critical

We believe that founders seeking validation will use an AI-powered analysis tool instead of manual research if we deliver comprehensive, actionable reports in minutes instead of weeks. We will know this is true when we see 70%+ of prototype users rate the output as "useful" or "very useful."

Risk Level: 🔴 Critical

Experiment Design:
  • Method: Wizard of Oz MVP
  • Sample Size: 20 prototype users
  • Duration: 4 weeks
  • Cost: Time only (10-20 hours of effort)
Success Metrics:
Metric Fail Minimum Success Home Run
User satisfaction <6/10 6-8/10 8/10+ 9/10+
NPS score <30 30-40 40-60 >60

Next Steps if Validated: Move to pricing validation

Next Steps if Invalidated: Adjust features based on feedback

Hypothesis #3: Willingness to Pay 🔴 Critical

We believe that bootstrapped founders will pay $49-$99 for a single viability analysis if we provide investor-grade output that saves 20+ hours of research. We will know this is true when we see 10+ pre-orders at the target price point.

Risk Level: 🔴 Critical

Experiment Design:
  • Method: Pre-order test
  • Sample Size: 50 interested founders
  • Duration: 3 weeks
  • Cost: $200 (marketing)
Success Metrics:
Metric Fail Minimum Success Home Run
Pre-orders collected <5 5-10 10-20 >20

Next Steps if Validated: Finalize pricing strategy

Next Steps if Invalidated: Explore alternative pricing models

Experiment Catalog

Experiment Hypothesis Method Sample Size Duration Cost Success Criteria
Problem Discovery Interviews #1 (Problem Existence) Semi-structured interviews 20-30 founders 2 weeks $1,000-$1,500 60%+ confirm problem
Landing Page Smoke Test #1 (Problem Existence) + #2 (Solution Interest) Landing page with signup 1,000 visitors 2 weeks $500-$1,000 >5% signup rate
Wizard of Oz MVP #2 (Solution Fit) + #3 (Willingness to Pay) Manual delivery of service 10 users 4 weeks Time only 8+/10 satisfaction

8-Week Validation Sprint Schedule

Week Activities Owner Deliverable
1-2 Launch landing page, recruit interview participants, conduct interviews, run ads Team Live page + analytics, 20 completed interviews
3-4 Analyze data, build MVP process, deliver to users Team Validation reports
5-6 Run pricing survey, collect payments, analyze data Team Pricing strategy
7-8 Compile results, make Go/No-Go decision, plan Phase 2 Team Decision document

Minimum Success Criteria (Go/No-Go)

Category Metric Must Achieve Nice-to-Have
Problem Interview confirmation 60%+ 80%+
Problem Landing page signup 5%+ 10%+
Solution Prototype satisfaction 7/10+ 8.5/10+
Solution NPS 30+ 50+
Pricing Willingness to pay at $X 50%+ 70%+
Pricing Pre-orders collected 10+ 25+
Overall Hypotheses validated 3/5 critical 5/5 critical

Go Decision: All "Must Achieve" criteria met

Conditional Go: 70% of criteria met, clear path to remainder

No-Go Decision: <70% of criteria met, no clear fixes

Pivot Triggers & Contingency Plans

  • Trigger #1: Problem Doesn't Exist
    • Signal: <40% of users confirm problem
    • Action: Interview users about their actual top problems, identify adjacent pain points
    • Pivot Options: Different problem in same audience, same problem in different audience
  • Trigger #2: Solution Doesn't Resonate
    • Signal: <50% satisfaction with prototype
    • Action: Deep-dive on what's missing, what's confusing, what's not valuable
    • Pivot Options: Simplify scope, change format, add human touch
  • Trigger #3: Won't Pay Enough
    • Signal: Acceptable price is <50% of target
    • Action: Find higher-value use case, different segment, or reduce costs
    • Pivot Options: Freemium with upsell, enterprise pivot, cost optimization
  • Trigger #4: Can't Acquire Efficiently
    • Signal: CAC >3x target in all channel tests
    • Action: Test organic/viral channels, reconsider pricing model
    • Pivot Options: Product-led growth, community-first, partnership distribution

Experiment Documentation Template

For each completed experiment, document:

## Experiment: [Name]
**Date:** [Start - End]
**Hypothesis Tested:** #X

### Setup
- What we did
- Sample size
- Tools used
- Cost incurred

### Results
| Metric | Target | Actual | Pass/Fail |
|--------|--------|--------|-----------|

### Key Learnings
- Insight #1
- Insight #2
- Surprise finding

### Evidence
- [Link to data]
- [Quotes/screenshots]

### Next Steps
- [What this means for the product]
- [Follow-up experiments needed]