Post on 06-May-2015
description
Customer Development for Entrepreneurs: What to Do When You’re Out of the Building
Mike Fishbein, www.mfishbein.com
About Me
Author, Customer Development for Entrepreneurs
Casual Corp
www.twitter.com/mfishbein
www.mfishbein.com
My Background
Growing up
How Lean and customer development has helped me
Why I created this
Key Topics
How to find customers and ask for interviews
How to get startup ideas
How to test startup ideas
Best and worst questions to ask
Key Topics
MVP, concierge and manual first approaches
Common customer development mistakes
Gaining insights to build awesome products
Case studies
What is Customer Development?
Mike Fishbein, www.mfishbein.com
What is Customer Development?
The practice of gaining customer insights through interviews and structured experiments to generate, test, and optimize startup ideas
Avoid spending time and money on stuff people don’t want
Build products that people love
How to Get Startup Ideas
Learn about:Customer pain pointsValue propositions that resonate
How to Test Startup Ideas
Is this something anyone wants?If yes confidence and convictionIf no what do they want?
or, quickly move on
How to Build Awesome Products
Gather customer insights to inform product decisions
Relentlessly serve customers
What it is Not
A silver bullet
Guarantor of success
Cheap or small
Easy
Other Benefits of Customer Dev
Customer acquisition
Pricing
Copywriting
Content marketing
Competitor research
Principles of Customer DevelopmentMike Fishbein, www.mfishbein.com
Principles of Customer Development
Abstract by a levelDon’t pitch at firstTry to prove yourself wrongTalk less, listen moreAsk open-ended questionsGet real validationOne on one and in person is best
Abstract by a Level
Don’t make any assumptions
Get them to tell you
Gain customer insights
Don’t Pitch (at first)
Gain customer insights
Form partnerships
Learn what they do want
Pitch when ready
Prove Yourself Wrong
Being wrong sucks.
But you know what sucks more?
Spending a bunch of time and money on something no one wants.
Less Talking More Listening
To learn, you must listen
Guide the conversation...then shut up
Open Ended Questions
Get customers talking
Learn what they do want
Until you want to learn specific things (like will they buy)
Get Real Validation
Words are not currency
Actions speak louder than words
How to Gather Insights
One on on and in person is bestSupplements:
SurveysFocus groupsResearchSecondary interviews
Four Phase Process
Mike Fishbein, www.mfishbein.com
The Four PhasesProblem Discovery
Product Discovery
Product Validation
Scale
1. Problem Discovery: Goals
Identify a problem worth solving
Find one or validate one
Abstract by a level
1. Problem Discovery: QuestionsWhat’s the hardest part about being a [demographic you’re serving]?What tasks take the most time during your day?What are some unmet needs you have?What product or service do you wish you had that doesn’t exist yet?What could be done to improve your experience as a [demographic you’re serving]?Do you find it hard to…Tell me about the last time you...
Other Problem Discovery TacticsListen for complaints
Be observant of your day
Look for hacked together solutions
Paid services
2. Product Discovery: Goals
Shape and optimize a solution to previously validated problem
Optimize your idea
2. Product Discovery: QuestionsDoes the product solve your problem?Would you ever use the product? Why or why not?What's appealing to you about the product?What deters you from the product?What would make the experience better?What do you dislike?If you could wave a magic wand and instantly have a solution to this problem, what would it look like?
3. Product Validation: Goals
Validate that customers view your product as a viable solution to their problem
3. Product Validation: Q’s & Tactics
Pre-sales“Would you be willing to start right away?”
MVP“I’ll do that for you…”
Pre-selling
The one dollar test
Cold call / vapor sale
Learn more
Landing page
What the heck is an MVP anyways?Minimum possible features that allow the product to be deployed and effectively solve the customer’s pain point
Further validation and deeper customer insight
Concierge MVP
Test your riskiest assumptions first
Examples
Marketplaces
Yipit
Data Analysis
Service Automation
4. Scale: Goals
Optimize your product
Turn “users” into “evangelists”
4. Scale: QuestionsWhat motivates you to continue using the product?What do you like most about the product?What do you dislike most about the product?How could your experience be improved?What’s the hardest part about using the product?What feature(s) do you wish the product had?What features do you wish were removed from the product?What would make you motivated to recommend the product to a friend or colleague?
How to Get Startup Ideas By Talking to PeopleMike Fishbein, www.mfishbein.com
Startup Ideas
CustomerMiniscule at first
Problem
ValueProduct
Why Start with Customer?
Time finding customers
Gain deeper insights
Enjoyment
How to Pick A Customer Segment
Relationships or access
Passion
Propensity to buy
Market size
Relationships / Access
Development
Acquisition
Connecting customer development and sales/marketing
Passion
A lot of time together
Enjoyment ---> effectiveness
Propensity to Buy
Budgets
Tech savvy
Incentive
Market Size
Goals
Niche product
How many potential customers?
Product Discovery
Proven models
Creative thinking
Automation
Problem Discovery QuestionsWhat are the top 3 challenges you face in your job?What are some unmet needs you have?What’s the hardest part about being a [demographic]?What’s the hardest part about doing [relevant activity]?What tasks take the most time during your day?What product or service do you wish you had that doesn’t exist yet?What could be done to improve your experience as a [demographic]?
Other Tactics for Generating Ideas
Scratch your own itch
Do what you know is working
Solve for basic needs
Listen and be observant
Scale
Do other people want this too?
Risk
Assumptions
Conclusion“Why do so many founders build things no one wants? Because
they begin by trying to think of startup ideas.” - Paul Graham
“By far the most common mistake startups make is to solve problems no one has.” - Paul Graham
How to Test Startup Ideas Before Building a ProductMike Fishbein, www.mfishbein.com
First Steps
Customer hypothesis
Validate problem
Validate product
Customer Hypothesis
Who would LOVE this product?
Specific, then iterate
Name one person
Validate Problem
Talk to peopleAbstract by a level
What are the top 3 challenges you face in your job?What’s the hardest part about being a [demographic]?What’s the hardest part about doing [relevant activity]?What tasks take the most time during your day?Tell me about the last time you….
Validate Solution What do you think of this idea? Does the product solve your problem?What would make it better?What do you like about this product or solution?What do you dislike?What would prevent you from using this product?Would you ever use the product? Why or why not?
Pre-sales
Actions speak louder than words
You will learn a lot
But...
“I’m already using x…”
“It’s not something I spend a lot of time on”
Or...
Validation!
Confidence and conviction
Partners and hires
Investors
Actual $$
How to Find Customers to InterviewMike Fishbein, www.mfishbein.com
Why
You might have the best new product idea in the world, but until you find customers, it’s not actually a business.
If you can’t find customers before you have a product, what will you do when you have a product?
WhoWho is most strongly affected by the problem you’re solving?
Who would absolutely LOVE this product/service?
Create a profile
Name someone specifically
How
Go where they go, online and offline
Most not scalable, sustainable, profitable
Test your riskiest assumption first
LinkedIn Groups
Roles, industries, interests, etc.
People you know “Hi [their name],
Hope all is well! I'm looking for feedback on a potential product to help with [problem or process]. Given your experience, it would be great to get your feedback.
I don't have a product to sell (yet)...I’m just trying to determine if it's a problem worth solving in the first place.
Could I buy you a coffee next week to ask you a few questions and get your feedback?
Thanks,
[your name]”
ReferralsYour network
People you’ve interviewed
“Do you know anyone else who might have this problem that you would feel comfortable introducing me to so I could conduct a similar interview?”
Find people on Facebook or Linkedin and asked shared connections
Cold Outreach
Get specificFind their contact information“Hi [their name],
I’m Mike [link to page with my bio]. I'm looking for feedback on a potential product to help with [problem or process]. I came across your LinkedIn profile and it looks like you have a lot of experience with [problem or process], so I was hoping to get your feedback.
I don't have a product to sell (yet)...I’m just trying to determine if it's a problem worth solving in the first place.
Could I ask you a few questions and get your feedback over a fifteen minute phone call?
Thanks,
[your name]”
Meetup.com
Go to eventsReach out to organizersPost on message board
Conferences and Events
Especially if enterprise
Craigslist
Respond to postsCreate posts
Hashtags, phrases
Search
Groups
Ads
Blog
Create relevant and valuable content
Can be sustainable customer acquisition
Can be your MVP
Offline Paper Handouts
Coffee shops, gyms, streets, etc
Kickstarter
Large user base
Validation and $
Hit the streets
Neighborhoods
Stores
Events
Quora
Reviews
Relevant questions
How to Ask for Interviews
Mike Fishbein, www.mfishbein.com
Frame the Conversation
Partners, not customersNothing to sellQuickDefine area or problemAsk for adviceYou won’t get a 100% response rate
Script 1“Hi [their name],
I'm looking for feedback on a potential product to help with [problem or process]. Given your experience, it would be great to get your feedback.
I don't have a product to sell (yet)...I’m just trying to determine if it's a problem worth solving in the first place.
Could I ask you a few questions over a 15 minute call?
Thanks,
[your name]”
Script 2“Hi [their name],
My name is [your name]. We’re doing research on a product to help people with [problem you’re solving or value you’re delivering].
We're currently in the development phase and we’re hoping you might provide some feedback so we can build the best product possible and potentially help you. I don’t have a product to sell you. I would just like to get your thoughts.
Are you available to talk on [date]?
Thanks in advance,
[your name]?”
What to Do Before, During and After InterviewsMike Fishbein, www.mfishbein.com
Before
Not a sale
Keep it casual
Qualify your customer
Qualify Your Customer
“Tell me about yourself.”“Tell me about your role.”“Who handles x?”“How much time do you spend on x?”“Do you have kids?”“Do you do x?”
During
Be observant
Take notes?
Record video or audio?
After
Clarify your takeaways
Ask if you can follow up
Ask for referrals
Thanks! :)
Takeaways“So based on the conversation, it sounds like x is really hard for you, but y is not”
“It sounds like x is very important to you, while y is not.”
Take notes if you didn’t during the interview
Follow Up “Can I keep you in the loop on how the product develops?”
“Can I follow up if I have more questions?”
“Would you like to know if/when the product goes live?”
Get contact info
Referrals
Get more interviewsSmall form of validation
“Do you know anyone else who might have this problem that you would feel comfortable introducing me to so I could conduct a similar interview?”
“Do you know anyone else who might benefit from this product/service? Would you feel comfortable introducing me so I can get feedback similar to our conversation?”
Case Studies
Mike Fishbein, www.mfishbein.com
Intro
SinglePlatform
AirBnB
Yipit
Failures?
Failures?
Avoiding wasted time and money on something no one wants is a success.
SinglePlatform
Problem DiscoveryAccess to customersProblem first
Product ValidationCustomers inform product decisionsPre-sales
AirBnB
Product ValidationFinding customers
Scale / Concierge MVP
Yipit
Concierge MVP
Conclusion
Mike Fishbein, www.mfishbein.com
Key Takeaways
Outcomes of customer developmentBest questionsGenerating startup ideasTesting startup ideasHow to find customers and ask for interviewsProduct validation exercises
Adios!
Questions?To learn more
Udemy (http://bit.ly/1bQW22W)
Amazon (http://amzn.to/1cusVFt)www.mfishbein.com
More Questions?www.twitter.com/mfishbein
Good luck validating!