Perplexity is a free AI search engine designed to revolutionise the way you discover information. Ask any question, and it searches the internet to give you an accessible, conversational, and verifiable answer. Think of Perplexity as a research partner, always on the clock, saving you valuable time by providing the precise knowledge you need.
Core value Proposition - Advantages of Using Perplexity over Search Engines:
Whether you are researching for professional projects, seeking answers to everyday questions, or exploring new topics to broaden your understanding, Perplexity is your definitive source for information.
Perplexity has 10 Lakh casual users in India. As per user research, majority of the users use it on free version and haven't showed any interest to take a Paid subscription which actually helps them unlock the true might of the product.
When compare other competitors (Google/ ChatGPT), Perplexity is in PMF stage in the Indian market.
From the Macro and Micro goals designed a survey and interview questions to create list of ICPs.
Survey: https://tally.so/r/mJRLe7
Ideal Customer Profiles of Perplexity from User Research
| ICP 1 | ICP 2 | ICP 3 | ICP 4 |
Who are they? | Random searcher (Rahul) | Working Professional (Naman) | Founders/ Business Managers (Sruthi) | Student (Arjun) |
Age | 22-25 | 25-30 | 33-40 | 18-20 |
Gender | Male | Male | Female | Female |
Location | Bangalore | Hyderabad | Mumbai | Chennai |
Occupation | Junior Engineer | Software developer | Founder | College Student |
Income | 5 LPA | 15 LPA | 25 LPA | - |
Relationship status | Single | Single/ In a relationship | Married | Single |
Lives with | Family | Alone | Family | Friends |
Where do they spend time? What are their interests? | Work: 40-50 hours per week. They spend time in parties, watching cricket and movies/ youtube. | Work: 50-80 hours per week They spend time upgrading skillset, parties and social media. | Work: 40 hours per week. Apart from being occupied by work, their interests lie in spending time with family, going out for movies, dinner. | College: 40-50 hours per week. During weekdays apart from college most time is spent on social media (Instagram, Snapchat, Twitter, Facebook) |
Where do they spend money? | Cricket, Movies, Sports and Food. | Rent, travel, food, family, lifestyle, fashion. | Loan EMI/Mutual funds/Savings, rent, food, lifestyle, fashion, shopping | Food, rent, lifestyle, fashion |
What do they value more: Time vs. Money | Money | Money & Time | Time | Money |
Did they previously used Google Search/ ChatGPT | Yes | Yes | Yes | Yes |
How many times they search on perplexity? | once a week | 1-10 times per week. | 10-70 times per week | 1-10 times per week. |
Pain points | Rahul wants to write an official email or need quick answer which he can use to complete the task at hand. Rahul wants easy way out, as customisation without understanding concepts is very difficult. He keeps procrastinating. | Naman is on the verge of getting promoted at office. He wants all the tasks at hand to be done efficiently and almost pitch perfect. He often worries if something goes wrong and validates. | Sruthi is a founder. She lacks skills in drafting HR policies, setting up tools or processes etc. On top of it, an employee resigned, she is juggling with multiple tasks at hand. She is often stuck in the endless search results on Google. | Arjun enthusiastic student and often wonders how he can use the concept he learned today in the real world. He doesn't find the answers on the google search relevant for his needs. |
What is their motivation to use the tool? | Rahul wants easy way out, as customisation without understanding concepts is very difficult. | Naman wants conviction and validation with the available resources on internet. | Sruthi wants to complete all her tasks at hand without impacting business continuity. She has limitation of time. | Arjun's curiosity. |
How can Perplexity helps? | Perplexity will give customised answers to Rahul helping him complete the tasks. | Perplexity helps Naman with AI generated answer which shows multiple ways of approaching along with source references to dig deep. | Perplexity is new Sruthi's assistant in search. It gives most suitable answers/ templates which she can further develop saving her a lot of time. | Perplexity helps Arjun by giving customised answers to his query. It will also give relevant questions he might be interested in to further understand the benefits of learning a concept. |
Willing to pay? | No | No | No | No |
Stay informed without the noise. Pro Search consolidates news from multiple angles, giving you a balanced view of current events.
Perplexity Pro search is the ultimate research assistant for students and academics. It digs through academic databases, runs simulations, and performs data analysis to tailor its findings, providing summarized papers and curated sources. Its the smartest way to research.
Pro search can pinpoint case laws for attorneys, summarize trend analysis for marketers, and debug code for developers—and that’s just the start. Whatever your profession, Pro Search can help you make more informed decisions.
Pro Search is a powerful tool for developers and programmers. It can debug code, run simulations, and provide detailed explanations for complex programming concepts. Whether you're tackling a tricky bug or optimizing your code, Pro Search has you covered.
Effortlessly upload pdf, csv documents, images and search within the files asking specific questions using chat interface.
Users can accomplish all the above with their choice of latest AI models(GPT-4 Omni, Claude 3 Sonnet/Opus, Sonar Large 32k, open source models) available in the market under the same plan.
The search results are generated from various sources and gets tagged with the link of sources. Perplexity users generally verifies the information using the source links before using them in the critical tasks.
User Journey start from the below screen
| Value to user | Ease of Adoption | Frequency | Appetite to pay | CAC |
---|---|---|---|---|---|
ICP 1 (Random searcher) | Low | Medium | Low | Low | High |
ICP 2 (Working Professional) | High | Very High✅ | Medium | Medium | Low✅ |
ICP 3 (Business Managers) | Very High✅ | High | High✅ | High✅ | Medium✅ |
ICP 4 (Student) | Medium | Medium | Medium | Low | High |
Assumption:
Since this is an acquisition project, not focusing much on monetisation and product is available in freemium model.
Based on above framework, considering high frequency usage, high appetite to pay, low CAC and high ease of adoption; narrowing it down to two ICPs:
People / Users use Search engines in various use cases and can be broadly categorized into 5 categories:
75 - 80% of all search queries on Google falls under Information search intent. [Perplexity Potential market]
Perplexity is a AI search engine designed to revolutionise the way you discover information.
Perplexity competes with search engines in the informational search intent category along with other AI chatbots in the similar space.
Competitors of Perplexity AI are
Why Perplexity over competitors:
In comparison to Google and ChatGPT user numbers, Perplexity is in PMF stage
Fact: Google has 92% market share across the world with 2 trillion searches annually as at 2024.
For the below calculations, Starting assumption is Google have 100% market share of search
How many users use search in India? | Calculation | Validation |
---|---|---|
Annual searches on google | 2 trillion | |
India's market share | 7% | |
Average searches per user per day (3-5 searches) Let's assume 3 are with Informational search intent | 3 | |
Indian users for search (TAM) | =(world wide searches per year * India market share)/ average searches per day per user =(2,000,000,000,000 *0.07)/3 = ~127 million users =~12.7 crore users | Interestingly, this number is almost same as english speaking individuals in india. |
As per lightbox a venture capital firm, It is estimated that there are 5 crore white collar workforce in india. (Assuming Founders and Business Managers come under this segment.)
As per ministry of Education, there are 3.85 crore students enrolled for higher education(Undergraduates+ Post graduates + Researchers).
The above sources are used to calculate SAM and SOM numbers.
| TAM | SAM | SOM |
---|---|---|---|
Total search users in India | 12.7 crores (Search users) | =5 + 3.85 crores =8.85 crores (Founders/ + White collar + | 2.05 crores (who are serious about White collar professionals |
Casual users who wants to chat interfaces (guesstimate) Freemium users | = 5%* search users =63.5 Lakhs | = 5%* (Founders + =44.25 Lakhs | = 5%* (who are serious about adding new skills, need precise answers or see value in search ) =10.25 Lakhs |
Users who are aggressive or student's. Top 1% is ambitious with | 1% of search users | 1% of (Founders + | 1% of (who are serious need structured/ precise answers or see value in search ) |
Top 1 % | 12.7 Lakhs | 8.85 Lakhs | 2.05 Lakhs |
Market share of Perplexity Great AI model and great well known after chatGPT | =12.7 * 0.2 = 2.54 lakhs | =8.85* 0.2 1.77 lakhs | =2.05 *0.2 =0.41 Lakhs |
Potential Opportunity - Monthly Current premium plan price is | =2.54 Lakhs * 1600 = 40.64 Crore Rupees | =1.77 Lakhs * 1600 =28.32 Crore Rupees | = 0.41 Lakhs * 1600 = 6.56 Crore Rupees |
Annualised Market Opportunity | = 40.64 *12 =487.2 Crores | =28.32 *12 =339.84 Crores | = 6.56 *12 =78.72 Crore Rupees |
The Market size calculations were very conservative. The market opportunity is 78.72 Crore Rupees per year from the B2C segment.
As the product is highly scalable at no cost, Perplexity has huge upside post cracking the top 1% of SOM. The top 1 % are always inspiration to others and can cause mass adoption later.
How to reach top 1% of Working professionals and Students/ Researchers who are serious to achieve their goals with the help of AI search assistant. Top 1% will be the early adopter of Perplexity subscription model.
Customised Core value proposition for all 4 ICPs
Ever feel stuck going through endless search results for your projects? Meet Perplexity, your study buddy that gets you straight answers.
Perplexity’s Perks for Students:
Drowning in Research Papers? Tired of sifting through countless links for your research?
Meet Perplexity, your academic sidekick that gives you clear, direct answers.
Why is Perplexity AI perfect for Researchers:
Tired of Unproductive Searches? Fed up with endless searching for the right info?
Meet Perplexity, your ultimate productivity booster.
How can perplexity help you:
Struggling with Document Prep and Emails? As a business owner or manager, do you find yourself overwhelmed with writing tasks? Meet Perplexity, your ultimate writing assistant designed to streamline your work.
Perplexity gives you a single, comprehensive answer instead of making you sift through endless links. It’s always up-to-date, pulling real-time info directly from the web and backing it up with reliable sources like top news outlets, academic papers, and established blogs.
Got PDFs or CSVs to analyze? Just upload them and search within the files using a simple chat interface. Whether you need to summarize complex data, solve tough problems, or even debug code, Perplexity Pro Search has you covered.
Transform your document preparation, copywriting, and email writing for sales and employee communication with Perplexity. It's the perfect tool for startup founders and business owners in India to boost productivity and stay ahead!
Though Perplexity have 10 Lakh users in india, users are predominately casual.
Casual users are experiencing the core value proposition and pro features with a limit of 5 searches per day.
Though users are experiencing core value proposition of AI assisted search, with rationing of searches (5 Pro searches limit), customer is not experiencing the success of his/ her task at hand.
As per my user research, users are rarely using the product and doesn't want to upgrade to the paid service where they can truly experience the value of AI assisted search.
To further strengthen the product for the needs of Indian users, we are considering Perplexity is in
PMF stage. As there is some level of Product Market fit with Casual users, the goal is to find out potential power users and figure out PMF for Pro version of the product.
Jobs to be done at this stage:
Hypothesis:
Search was always been free in the consumer market. With rate limits of the Pro search and features of Perplexity, users are not experiencing customer success of their task in hand. Given free trails of pro membership to ICPs, User will experience true value of Perplexity's AI Assisted search saving time and improving efficiency.
Strategy:
Acquiring first set of power users with free trails.
Giving ICPs unlimited pro access in the form of Free trails and measure the customer success over period of one day vs week vs month vs quarter. Getting consistent feedback on usability, features and add ons to make the product integrated into their information discovery routine.
We as a product getting a lot of feedback from the casual users but not so much from the pro subscription users in Indian market. The below experiments are focused upon acquiring users for pro subscription via free trails of 3 months for Business communities and 1 year for Working professionals.
Looking for Cheaper, somewhat faster and highest quality feedback with the below experiments.
Mostly community members/ managers agree to try out Pro as they are casual users of such technologies.
Prioritised active business owner communities are:
Reason to give 3 month free access is the users have high appetite to pay if they derive value out of a product. Also, Business Owners/ managers are the ICPs who can derive most value out of the product.
Struggling with Document Prep and Emails? As a business owner or manager, do you find yourself overwhelmed with writing tasks? Meet Perplexity, your ultimate writing assistant designed to streamline your work.
Perplexity gives you a single, comprehensive answer instead of making you sift through endless links. It’s always up-to-date, pulling real-time info directly from the web and backing it up with reliable sources like top news outlets, academic papers, and established blogs.
Got PDFs or CSVs to analyze? Just upload them and search within the files using a simple chat interface. Whether you need to summarize complex data, solve tough problems, or even debug code, Perplexity Pro Search has you covered.
Transform your document preparation, copywriting, and email writing for sales and employee communication with Perplexity. It's the perfect tool for startup founders and business owners in India to boost productivity and stay ahead!
Example: Step by step process for BNI Hyderabad community.
Same process will be repeated to CII - Mumbai & Delhi Community and NAASCOM - Bangalore Community and usage metrics will be tracked.
Other communities to target in the future. Association lists
Mostly community members/ managers agree to try out Pro as they are casual users of such technologies.
Prioritised learning communities/ online schools are:
These online schools are focused on their member growth and success in their professional careers. Often they have member benefit programs where they collate discounts/ offers of various B2C brands and show them as extra added value for the community members. The goals of learning community and Perplexity are aligned in this engagement.
Reason to give one year access is these working professionals have low appetite to pay if 3 month free access is given. we might be disrupting the habit forming phase.
Boost Your Productivity with Perplexity
Are you tired of unproductive searches and endless scrolling for the right information? Meet Perplexity, your ultimate productivity booster tailored for working professionals.
Why Perplexity?
Example: Step by step process for online schools/ communities.
Why Perplexity?
More or less the above process can be repeated with colleges/ research institutes, startups associated with Startup Incubators/ Accelerators/ VC firms, Research oriented companies and jobs like legal associates. etc to acquire some more ICPs.
(This is not a collaboration or for influencer marketing - Mostly influencer agree to try out Pro as they are casual users)
Platform | Topic | Linkedin Profile |
---|---|---|
Youtube | Business case studies | linkedin.com/company/the-think-school/?originalSubdomain=in |
Technology |
Drowning in Research Papers? Tired of going through countless links for your research?
Meet Perplexity, your research sidekick that gives you clear, direct answers along with the sources.
Why is Perplexity AI perfect for Researchers like you:
Skip the Links: Get one detailed answer, no more endless searches.
Real-time Info: Up-to-date data, right when you need it.
Reliable Sources: Answers backed by top news, academic papers, and blogs.
File Analysis: Upload PDFs and CSVs, then search within them using a chat interface.
Pro Search: Summarize research, solve complex problems, and even debug code.
With the Above 3 experiments focus on acquiring limited but quality ICPs - Working professionals, Business owners/ managers who are estimated to turn into power users of the product.
These experiments will help Perplexity to update the marketing message with actual usage patterns/ feedback and build new features on top of core value proposition to make the users integrate the product in their professional and personal lives.
At the end of 3 months based on the ICP usage, we should be able to align and nail our marketing message and further experiment with channels which help us with user acquisition for Perplexity Pro membership and do multiple experiments across acquisition channels.
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