20. instruments for customer modeling (customer...
TRANSCRIPT
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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a Business
20. Instruments for Customer Modeling (CustomerDevelopment)
Prof. Dr. Uwe AßmannSoftwaretechnologieFakultät InformatikTechnische Universität Dresden2016-1.0, 12/9/16http://st.inf.tu-dresden.de/teaching/saab
1) Customer Development
2) Different Kinds of Fits
3) Customer Analysis
1) Situation Analysis
4) Customer Validation
1) Customer Interviews
2) Measuring Customer Feedback
3) Channel Analysis
5) Customer Double Funnel
6) The Evolving Nested BMC Cactus
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2 Software as a Business
Obligatory Literature
► A. Osterwalder, Y. Pigneur et al. Value Proposition Design. Wiley.
► [BlankDorf] Steve Blank, Bob Dorf, Nils Högsdal, Daniel Bartel. Das Handbuch fürStartups – die deutsche Ausgabe von 'The Startup Owner's Manual'. DeutscheÜbersetzung von Kathrin Lichtenberg. 2014. O'Reilly.
■ http://www.daniel-bartel.de/das-handbuch-fuumlr-startups.html
At one period of those early days I think that I must have had fully three hundred watches. Ithought that I could build a serviceable watch for around thirty cents and nearly started in thebusiness. But I did not because I figured out that watches were not universal necessities,and therefore people generally would not buy them.
Henry Ford. My Life and Work. Www.gutenberg.org Ebook #7213
At one period of those early days I think that I must have had fully three hundred watches. Ithought that I could build a serviceable watch for around thirty cents and nearly started in thebusiness. But I did not because I figured out that watches were not universal necessities,and therefore people generally would not buy them.
Henry Ford. My Life and Work. Www.gutenberg.org Ebook #7213
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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a Business
20.1. Customer Modeling (Customer Development)
Find out who the customer is, what she needsand desires.. a specific part of the Lean Innovation process[Blank]
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4 Software as a Business
The Customer Development Process
Customer Discovery CustomerValidation Company BuildingCustomer Creation
Customer Search Customer Building
Customer Development (Customer Modeling)
Customer Development, a company-centric process [Blank/Dorf] 2008
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5 Software as a Business
Q3: Blank's Customer Modeling Process “CustomerDevelopment”
1. Customer Discovery
(Customer Analysis)
2. Customer(Hypothesis)
Validation
3. Customer Creation
(Kundenaufbau)(Selling)
4. Company Building(Unternehmens-
Aufbau)
I. Customer Search
Disillusioned?StrategicChange
Verified
Found Verified
II. Customer Building
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6 Software as a Business
Q3: Blank's Customer Development Process Blendedwith Maurya's Running Lean Process
Customer Discovery
Customer(Hypothesis)
Validation
Customer Creation(-aufbau)
Company Building(Unternehmens-
Aufbau)
Customer Search
Disillusioned?
Verified
StrategicChange
Found Verified
Customer Building
Problem-Solution Fit Product-Market Fit
Efficiency (Sell) Scale
(Startup Genome Report)
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7 Software as a Business
Q4: Step 1: The Customer Discovery Subprocess(Problem-Solution Fit)
1.1 Customer Vision
1.2 Customer Interviews
(MVV testing)
2.1 Customer tests
(MVP testing)
StrategicCrisis
1. Customer Discovery
Disillusioned?
StrategicChange
Verified
MVVFound Verified
2. Customer (Hypothesis) Validation
Problem-Solution Fit
No
Yes
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8 Software as a Business
Q4: Step 2: The Customer Validation Subprocess(Product-Market Fit)
2.1 Sales Preparation
2.1.2 IdentifyEarlyAdopers
2.1.3 OptimizationPlans and Tools
2.1.4 Sales Roadmap(Vertrieb)
2. Customer Validation
Disillusioned?StrategicChange
2.1.5 CustomerBinding and
Development
2.2 Product Development
2.3 Assessment
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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a Business
20.2 Different Kind of Fits in the Value PropositionDesign Process
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10 Software as a Business
Stages of Fitness
Product-Market
Fit
Problem-SolutionFit
(Vision Fit)
Business-Model-Venture-Capital
Fit
Scale Fit(Virality)
Lean Innovation Process
Fitness stages
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11 Software as a Business
Steps in the Stages of Maturity
Product-Market
Fit
Problem-SolutionFit
Business-Model-Venture-Capital
Fit
Scale Fit(Virality)
Lean Innovation Process
Fitness stages
red yellow green red yellow green red yellow green red yellow green
Example
► A green problem-solution fit is a value proposition stable pain/gain analysis, butwithout services and products
► A green product-market fit is a value proposition stable pain/gain analysis with services and products, i.e., a stable BMC
► A yellow BM-VC-fit is a BM that has been matured after one round of correction by theventure capitalists (VCs)
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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a Business
20.3 Customer Discovery:Analysis of the Customer's World
Before understanding the pain and gain of thecustomer, we need to understand its world
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14 Software as a Business
The Major 4 Obstacles to Customer Know-How CanOnly Be Remedied by Testing the Customer Hypotheses
► In a group, untested information about the customer can be collected bycanvases
► Hypotheses about the customer have to be formed► Hypothesis must be tested by getting out of the building
[Alvarez, Blank/Dorf]
Engineer'sIgnorance
Self BiasIgnorance of
Customer Search
Bias towards one's own great idea and technology
Being an engineer seduces to skip validating ideas
Ignorance to know how to find customers
Ignorance ofStart
Ignorance to know how start
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15 Software as a Business
Empathy Map for Customer Modelling
15http://blog.8thcolor.com/2011/08/who-are-our-posible-customers/empathy_map/
https://dschool.stanford.edu/wp-content/themes/dschool/method-cards/empathy-map.pdf
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16 Software as a Business
Simpler: Modelling the Customer's Feelings
Prof
. U
. Aßm
ann,
TU
Dre
sden 20.
wp-content/uploads/2013/02/mitroff.fig2_.jpg
http://www.johndoyle.ie/?p=92
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17 Software as a Business
Modeling the Customer's DayHow should a good “Customer Day Canvas” look?
NightMorning
BreakfastMorning
WorkLunch
AfternoonWork
DinnerEveningHome
EveningOut
Go to BedFallingAsleep
► Use the Customer Empathy Map to run through the customer’s day
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19 Software as a Business
Analyzing the Customer's Relationships
► An organizational / influence map draws the network of the customer that caninfluence his buy-no-buy decisions
► Analysis can start with a table or a graph
► Analysis constructs a dependency graph (partial or total order)
► Deciders are the sinks of the dependency graph
[Blank/Dorf]
Managerial Technical Financial
High Departmentboss
Accounter
Middle Engineer
low Project leader End user
1 2
3
4 5<<depends on>>
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20 Software as a Business
Customer Relationship Analysis with Business ModelYou
► Play your customer …. and fill a BMY Canvas.
Key PartnersWho helpsYour customer?
CustomerRelationshipsHow does sheinteract?
Customer SegmentsWhom doesYour customer help?
Key activitiesWhat do Your customer do?
ChannelsHow do they know him?How does shedeliver?
Key ResourcesWhat she isand has
Value PropositionHow does Your customer help?
Cost StructureWhat does he give?
Revenue StreamsWhat does she get?
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21 Software as a Business
Customer Profile (Persona)
► A Customer Persona (profile, archetype) is a story about an average customer from acustomer segment.
■ Derived from Empathy Map, Influence Map, VPA, Problem Analysis,Customer's Day, Customers influence map
► Table form of Persona:
Highlights in the customer's day,problem canvas, VPC, or influencemap
Hints for aquisition
Gets up with difficulties Don't call him before 10:00; send hima coffee kit for advertisement
Doesn't like to read Send him a DVD with video
Has friends in political party PDU Analyze partie's opinion about theeffects of your product
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22 Software as a Business
The Market Slices with Different Customer Segments
Target Person Group
Target Market (TM)
Served Adressable Market (SAM)
Total Adressable Market (TAM)
Target Person Profile (Persona)
[Blank/Dorf]
Concretenesslevel
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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a Business
20.4 Customer Validation(Potential) Customer Interviews as Simple Tests forHypotheses
Customer Interviews are a special form of sales meetings (pre-sales). Theyhave to conduct pain-gain analysis, guide the customer modeling by testingcustomer hypotheses, and guide the BMC development.
Interviews are the fastest, cheapest way to learn more about what yourcustomers are doing and what problems they're facing. [Alvarez]
People will talk to you because we all like to help others, like to sound smart,like to fix things, and like to complain. [Alvarez]
It's not the customer's job to know what they want. [Steve Jobs]
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24 Software as a Business
Forms of Interviews, based on Sales Funnel Traveling
Problem Interview
Finding out the customer's problems and pains
Filling a problem canvas
Solution Interview
Finding out which solutions and gainsthe customer needsFilling a VPC canvas
SPIN interview
Walking with the customer from implicit needs to explicit needs
[RunningLean, Alvarez, Rackham, Bosworth]
Solutions Selling Interview(Pain Sheets)
Walking with the customer from reasons to capabilities
Pain-Gain Banana Interview
Walking with the customer from hidden needs to competitive advantage
Problem &SolutionInterview Problem-Solution-Sheet
Interview
Walking with the customer from hidden needs to competitive advantage
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25 Software as a Business
Problem Presentation [Blank/Dorf]
► The problem presentation shall help to find information from the customer about hisproblem.
■ It presents the current state of problem hypotheses in form of a problem-solution list
■ It shall ask questions for problem analysis and VPA, preferably prepared byfilling the canvases before
■ Using “What-if”-questions■ Using “Hidden-effect”-questions■ Using “Cost” questions■ Using “Pain” questions
Problem Solution Today Solution Tomorrow
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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a Business
20.4.2 Measuring Customer Feedback
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27 Software as a Business
Customer Feedback Opportunities
► Domain-specific Fairs are a good place to meet domain experts
► User Days: allow for questions and discussions with customers
► User Conferences with talks■ Exhibit or give a talk at a potential OEM's conference
► At the beer: customers are honest
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28 Software as a Business
Customer Discovery Report Table [Blank/Dorf]
► The report table estimates with school grading the maturity in the customer funnel ofall potential customers.
► School grading can be 1-3, 1-5, 1-16, 1-100
Customer Enthusiastic
Urgentlyneeded
Importance ofeffects
Improvised solution
120 days Importance ofDecider
120x2 total
Miller 1 1 3 5 5 1 10 26
Bush 1 2 4 5 1 3 2 18
Clinton 5 3 1 1 1 1 2 14
Trump 2 2 4 3 3 5 6 25
Average 2,25 2 3 3.5 2,5 2,5 5
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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a Business
20.4.3. Channel Analysis
How does your product arrive at the customer?
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31 Software as a Business
Channel Flipbook Canvas [LeanAnalytics]
► Put a problem first into the “Product Type” or “Service Type” field, then think aboutacquisition, selling, revenue, and delivery
► Subcanvas of BMC for filling Channel and RevenueStream
AcquisitionChannel
Revenue modelSelling tactic Delivery Model
Product TypeService Type
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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a Business
20.5 Keeping the Customer with Blank’s Double-Funnel
How do you bind the customer? (Stammkunde)
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33 Software as a Business
Customer Double Funnel Canvas (Startup FunnelBoard)
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34 Software as a Business
Blank/Dorf Double Funnel
► Cold customer aquisition is 10 times moredifficult than customer binding
Consideration
Interest (Aquise)
Purchase(Activate)
Awareness
Blank's Double Funnel
Bind
Up-selling
Next-selling
Cross-selling
Referral
Customer relationship management
Customer bonus programs
Customer feedback programs
Blogs, twitter, facebook, emails
Loyality programs (birthdays...)
Rabatt-Programs
Product updatesCompetitions
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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a Business
20.8. The Evolving Cactus of the Nested BMC
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The Dependency Structure of Canvases (the NestedBMC)
► How would you maintain an evolving cactus for all these canvases?
BMC
VPC Customer JourneyCanvas (CJC)
ReqEC
ChannelFlipbook Canvas
Pain CanvasPain Killer Canvas
Pain-GainBananaPain Portfolio
CustomerEmpathy Map
CustomerBMCY
Customer DoubleFunnel Canvas
SPIN™ Canvas
Solution Selling™
Canvas
Gain CanvasPain Creator Canvas
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The End
► Explain the difference between customer empathy, activation, stickiness, virality andreferral.
► What is the difference between untested, assessed, and tested canvases?
► What is a strong real tested pain?
► Why are catastrophies better for a good value proposition than blocking factors?
► Explain the influence of the UCA for virality.
► Why is the pirate metrics important for building good value propositions?
► How can you cross the border between Virality and Revenue in the LeanAnalyticsstages?
► Explain the differences between the SPIN™ Canvas and the VPC. Which canvas do youprefer for a cold call?
► Explain how you use the Channel Flipbook Canvas, the Customer Empathy Map and theCustomer Double-Funnel Canvas for a Customer and Customer-Segment Analysis.