022310 class 6
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This document provides an overview of the customer development process in four phases: 1) Author Hypothesis, 2) Test and Qualify Problem Hypothesis, 3) Test Product Hypothesis, and 4) Verify, Iterate and Expand. It discusses stopping selling and starting listening to customers to test hypotheses about the problem and product concept. Each phase involves activities like presenting problems to customers, gathering feedback, and verifying assumptions. The goal is to get outside the building, test ideas with customers, and iterate based on reality checks until deciding whether to iterate further or exit.
022310 class 6
- 1. Customer Development in the High Tech Enterprise Customer Discovery Part 3 Steve Blank sblank@kandsranch.com 5/24/10 1
- 2. Class 6: Agenda Logistics/Questions Customer Discovery Guest: Flowtown CASE: Motive
- 3. Customer Discovery: Step 1 Customer Customer Customer Company Discovery Validation Creation Building Stop selling, start listening Test your hypotheses Two are fundamental: problem and product concept
- 4. Customer Discovery Customer Phase 3 Phase 4 Discovery Test Verify, Iterate & Product Expand Hypothesis To Validation Phase 1 Phase 2 Author Test Hypothesis Problem Hypothesis
- 5. Customer Discovery Hypotheses! Product Customer Distribution Demand Market Type Competitive Hypothesis & Problem & Pricing Creation Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Test “Problem” Hypothesis! Friendly “Problem” Customer Market First Contacts Presentation Understanding Knowledge Test “Product” Hypothesis! First Reality “Product” Yet More Second Check Presentation Customer Reality Check Visits Verify! Verify the Verify the Verify the Iterate or Product Problem Business Exit Model
- 6. Customer Discovery - Web Source: ash maurya
- 7. Customer Discovery Hypotheses! T h e i m Product Hypothesis Inside the Building! Customer & Problem Hypothesis Distribution & Pricing Hypothesis Demand Creation Hypothesis Market Type Hypothesis Competitive Hypothesis Test “Problem” Hypothesis! Friendly “Problem” Customer Market First Contacts Presentation Understanding Knowledge Outside the Building! Test “Product” Hypothesis! First Reality “Product” Yet More Second Check Presentation Customer Reality Check Verify! Visits Verify the Verify the Verify the Iterate or Product Problem Business Exit Model
- 8. Phase 1: Author Hypothesis Phase 3 Product Phase 4 Iterate & One-time writing exercise Concept Expand Testing All other time spent in front of customers Phase 1 Assumes you’re smart but Phase 2 Test Author guessing Problem Hypothesis Hypothesis
- 9. Phase 2: Test & Qualify Problem Hypothesis Phase 3 Phase 4 Test Product Iterate & Expand Get out of the building Hypothesis Test the problem Become the customer Phase 1 Phase 2 Author Solve a real problem Test Hypothesis Problem Hypothesis
- 10. Phase 3: Test Product Hypothesis Phase 3 Phase 4 First reality check w/ Test Iterate & Expand product development Product Hypothesis The product hits the street Lots of customer visits Phase 1 Phase 2 Test Hypothesis More doses of reality & Qualify Hypothesis
- 11. Test Product Hypothesis First Reality Check Product Presentation Yet More Customer Visits Second Reality Check First Reality “Product” Yet More Second Check Presentation Customer Reality Check Visits
- 12. 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
- 13. Test Product Hypothesis: Product Presentation Questionnaire Start with a Problem Presentation Then describe the Product Demo if you have one
- 14. 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
- 15. 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
- 16. Phase 4: Verify, Iterate & Expand Phase 3 Phase 4 The Problem Test Product Iterate & The Product Hypothesis Expand The Business Model Iterate or Exit Phase 1 Phase 2 Hypothesis Test Problem Hypothesis Verify the Verify the Verify the Iterate or Product Problem Business Exit Model
- 17. Verify, Iterate and Expand: The Problem Problem Hypothesis Testing Magnitude of customer needs Rank customer problems Summary of customer problem input
- 18. 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
- 19. Verify, Iterate and Expand: The Business Model Customer Model ROI Market Size Service Development Manufacturing Customer Acquisition
- 20. 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
- 21. Verify- Iterate or Exit Summarize Iterate Exit
- 22. 3 Ways To FAIL At Customer Development Credit: cgldesign
- 24. Don’t Talk to Customers
- 25. Solve Problems You’re Not Passionate About
- 26. Sell Your Solution Before It’s Validated
- 27. 3 Tips For A Successful CD Process
- 28. Thanks! We’re twitter: @ebloch & @danmartell ethan@flowtown.com & dan@flowtown.com