Presented by: Nina Chagnon, Date: Jan 17th, 2007 Overview MaRS Discovery District.
Customer Discovery and Market Intelligence - MaRS Entrepreneurship 101
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Transcript of Customer Discovery and Market Intelligence - MaRS Entrepreneurship 101
MaRS Discovery DistrictMarket & Customer Discovery
Usha Srinivasan Ph.D, VP – Learning and Insights
Story of two 10-year-old boys who became accidental entrepreneurs
One just loved to draw and the other was such a good storyteller so they
decided to create comics for fun
“Necessity is the mother of Invention or Innovation”
The comics seem to get the attention of other kids in the
playground and a comic business was born!!!
“Customer discovery” for the comic business
Understand the “problem” -Why do their school mates like their comic?
Understand the customers buying power -Will the school mates pay for this one page of giggles
and how much?
Understand the competition -What other comics were they reading?
Understand customer preferences - Did girls also like their jokes and comics as much as
the boys?
What is the ONE thing you really need to know?
Market and Customer DiscoveryWhat does it all mean ?
It’s a Journey….
…with unclear directions
Market and customer intelligence can help
you de-risk and translate your
assumptions to facts!!!
Clear Pathways
Pg 8
PrimarySecondary
What type of information are we talking about?
60% 40%
Quantitative Qualitative
Sourcing the Data: Secondary
Type of data Example of source
Statistics Economic statisticsCustoms databasesGovernment statistics
Industry data Industry associationsMarket research reports Investor reports
Product data Product brochuresProduct reviews
News Free public aggregators (incl. Google)Fee-based news aggregators
Patent Literature Delphion (International)USPTO – Patents (US)CIPO – Patents (Canada)Espacenet (Europe)
Company & Financial data
Public company directoriesSecurities exchanges (S.E.C., SEDAR)Global company financials databasesLocal company financials databases
Adapted from Global Intelligence Alliance, 2012
Sourcing the Data: Resources
UofT Librarieshttp://guides.library.utoronto.ca/techentrepreneurship
Startup Library
http://marsdd.it/1khP6hs
MaRS Market Intelligence
http://www.marsdd.com/market-intelligence
Sourcing the Data: Primary
Data
Own Employees
Own supply-chain
Own customers
Industry experts
Analysts
Associations
Academia
Adapted from Global Intelligence Alliance, 2012
Step 1- How BIG is my Market?
Is this journey worth it? a.k.aIs this Market BIG enough?
FIND OUT by – Effectively extracting information from
Secondary published sources
Markets: Total, Sales, Target
S
Total Addressable
Perfect World Scenario
No competitors
All the financing available to grow
Adapted from Blank & Dorf, 2012
Markets: Total, Sales, Target
S
Total Addressable
Sales Addressable
Real World Constraints
Geography
Competition
Sales channels
Adapted from Blank & Dorf, 2012
Markets: Total, Sales, Target
S
Total Addressable
Sales Addressable
Target
Priority Scenario
Most desirable
Most feasible
Adapted from Blank & Dorf, 2012
Two Approaches
Top-down
Top-down estimates approach the true value from above, by starting with broad indicators which are narrowed down using assumptions.
Pro Often a quicker and easier way to size a market
Con Tends to give too high estimates
Bottom-up
Bottom-up estimates approach the true value from below, by summing up known supply data from market participants.
Pro Often considered more conservative (accounts for capacity limitations of the industry).
Con Usually requires primary research, therefore often expensive to do.
Statistic
Data point
Total market size
Assumption
Statistic
Data point
Assumption
Supplier 1
Segment total
Total market size
Supplier 2 Supplier 3
Segment total
Supplier 4
Source: Global Intelligence Alliance, 2012
Step 2- Where am I selling?Market Type
Has someone already been on this journey? a.k.a
Which Market Type do I fit into?
ExistingRe-segmented (low cost/specific need)
New Clone
Step 3 – Who am I Competing with?
Who else am I going to bump into – a.k.a
Who am I competing with?
Knowing your market type is key to understand your competitors
Resources to find - Competing technologies, products & companies
1. Consider patent or prior art searches – Public databases like USPTO or WIPO, or paid databases like Delphion or Total Patents
2. Compare product/technology capability/claims: use product brochures from trade shows or product claims from websites
3. Identify and monitor relevant news sources (e.g., MobiHealth News) – search keywords, set up alerts
4. MaRS Startup Library’s “How do I identify competitors?” – CrunchBase, Techvibes, Startup North, Industry Canada etc.
5. Syndicated research by Frost & Sullivan, Gartner, BCC research etc. that publish competitor information
Steve Blank’s Petal Diagram
Steve Blank’s Petal Diagram
Step 4 – Understanding your customers
Is the roadmap you have enough to get to point B? i.e.,
To get to a place to understand your customers needs?
You need to GET OUT OF THE CAR!!!
Customer types – who are they in your market?
Decision Maker $$$$$
Economic Buyer $$$
Recommenders
Influencers
End Users
Resources to understand customersPeople, Place and Industry (B2C & B2B)
-Geographic information (Regulations, Partners, Political)-Demographic information (age, income, occupation, etc.)-Psychographic information (personality, values, interests, lifestyle, etc.)-Industry information (Regulations, investments, needs)
1. Use already published primary research data by marketing research firms - Omnibus studies – Forrester, ComScore, IMSHealth, JD Power, ACNeilsen, Frost & Sullivan
2. Industry Associations are a great source
3. Tap into Canadian Trade Commissioners office (DFATD) in other countries – understanding local dynamics/connections
4. In house primary research – Online and direct interviews
Primary Research Sources for Start Ups
• Mock website – Google site/Weebly• Surveys - Beware of respondent
quality - Examples sites – Survey Monkey, Google consumer survey, Addpoll, Fluidsurveys etc.
• Listservs & Specific interest groups• Social media• Crowdfunding platforms
Onlinetools
• Leverage Friends and Family• Low cost Focus groups – your sport
team, association members• Telephone interviews• Face to Face interviews
Direct Interviews
Customer Persona – B2C
Customer Persona – B2B
Face to Face Interviews
Nothing is better than a face to face interview to get the best customer insight.
Top 10 things to remember:
1. Understand your customer persona2. Always ask for a referral3. Set up a time and expectation for the interview4. Prepare your questions & use a template to record5. PAUSE after every question. LISTEN to your customers6. Record the answers right after the interview7. Respect their time8. Ask for other referrals9. Score your qualitative responses to quantify & evaluate the
insights10. Refine your questions and try again!!
Step 5 – Channels and Business Model
Understand customer needsSolution to solve it
Channel to reach themBusiness model to make money
CONGRATULATIONS!!! You used Market & Customer
Intelligence to find a viable business opportunity
pg 30
Usha Srinivasan PhDVice PresidentLearning and InsightsMaRS Discovery DistrictT 416-673-8144E [email protected] www.marsdd.com