022310 class 6
TRANSCRIPT
5/24/10 1
Customer Development in the High Tech Enterprise
Customer Discovery Part 3
Steve Blank [email protected]
Class 6: Agenda
Logistics/Questions Customer Discovery Guest: Flowtown CASE: Motive
Stop selling, start listening
Test your hypotheses Two are fundamental: problem and product concept
Customer Discovery: Step 1
Customer Discovery
Customer Validation
Company Building
Customer Creation
Customer Discovery
Customer Discovery
Phase 1 Author
Hypothesis Phase 2
Test Problem
Hypothesis
Phase 4 Verify, Iterate &
Expand
Phase 3 Test
Product Hypothesis
To Validation
Test “Problem” Hypothesis!
Customer Discovery
Demand Creation
Hypothesis Market Type Hypothesis
Product Hypothesis
Customer & Problem Hypothesis
Distribution & Pricing
Hypothesis Competitive Hypothesis
Hypotheses!
Market Knowledge
Friendly First Contacts
“Problem” Presentation
Customer Understanding
Second Reality Check
First Reality Check
“Product” Presentation
Yet More Customer
Visits
Test “Product” Hypothesis!
Iterate or Exit
Verify the Product
Verify the Problem
Verify the Business
Model
Verify!
Customer Discovery - Web
Source: ash maurya
Test “Problem” Hypothesis!
Customer Discovery
Demand Creation
Hypothesis
The im
Market Type Hypothesis
Product Hypothesis
Customer & Problem Hypothesis
Distribution & Pricing
Hypothesis Competitive Hypothesis
Hypotheses!
Market Knowledge
Friendly First Contacts
“Problem” Presentation
Customer Understanding
Second Reality Check
First Reality Check
“Product” Presentation
Yet More Customer
Visits
Test “Product” Hypothesis!
Iterate or Exit
Verify the Product
Verify the Problem
Verify the Business
Model
Verify!
Inside the Building!
Outside the Building!
Phase 1: Author Hypothesis
One-time writing exercise All other time spent in
front of customers Assumes you’re smart but
guessing Phase 1 Author
Hypothesis
Phase 2 Test
Problem Hypothesis
Phase 4 Iterate & Expand
Phase 3 Product Concept Testing
Phase 2: Test & Qualify Problem Hypothesis
Get out of the building Test the problem Become the customer Solve a real problem Phase 1
Author Hypothesis
Phase 2 Test
Problem Hypothesis
Phase 4 Iterate & Expand
Phase 3 Test
Product Hypothesis
Phase 3: Test Product Hypothesis
First reality check w/product development
The product hits the street Lots of customer visits More doses of reality Phase 1
Hypothesis Phase 2 Test
& Qualify Hypothesis
Phase 4 Iterate & Expand
Phase 3 Test
Product Hypothesis
Test Product Hypothesis
First Reality Check Product Presentation Yet More Customer Visits Second Reality Check
Second Reality Check
First Reality Check
“Product” Presentation
Yet More Customer
Visits
Test Product Hypothesis: First Reality Check
Build a Workflow Map of customer Before and after your product
Problem scale Key insights How did the product spec match needs? Re-review product feature List Why are you different
Test Product Hypothesis: Product Presentation
Questionnaire Start with a Problem Presentation Then describe the Product Demo if you have one
Test Product Hypothesis: Yet More Customer Visits
Set up More Calls Validate Solution Validate Product Validate Positioning Understand Customer and Org. Pain Validate Pricing and Budget Understand “Whole Product” needs Understand Approval Process Update potential Advisory Board candidates
Test Product Hypothesis: Second Reality Check
Does the product solve a problem? Serious problem? For a large scalable market?
How did the product spec match needs? Re-review product Feature List
Phase 4: Verify, Iterate & Expand
The Problem The Product The Business Model Iterate or Exit
Phase 1 Hypothesis Phase 2
Test Problem
Hypothesis
Phase 4 Iterate & Expand
Phase 3 Test
Product Hypothesis
Iterate or Exit
Verify the Product
Verify the Problem
Verify the Business
Model
Verify, Iterate and Expand: The Problem
Problem Hypothesis Testing Magnitude of customer needs Rank customer problems Summary of customer problem input
Verify, Iterate and Expand: The Product
Product match Problem? Feature list Quantify customer problem Summary of customer product input Why are you different? Review Product Spec
Verify, Iterate and Expand: The Business Model
Customer Model ROI Market Size Service Development Manufacturing Customer Acquisition
Customer Discovery: Exit Criteria
What are your customers top problems? How much will they pay to solve them
Does your product concept solve them? Do customers agree? How much will they pay
Draw a day-in-the-life of a customer before & after your product
Draw the org chart of users & buyers
Verify- Iterate or Exit
Summarize Iterate Exit
3 Ways To FAIL At Customer Development
Credit: cgldesign
Flowtown’s Evolution
Don’t Talk to Customers
Solve Problems You’re Not Passionate About
Sell Your Solution Before It’s Validated
3 Tips For A Successful CD Process
