2a customer discovery ( canvas and story ).2013.q2
- 1. Customer Discovery Class # 2a Iain Verigin 1
- 2. Today • Majority of Time : Review an example – “what exactly does this work looks like” • Timeline – Quickly Recap “Customer Discovery Planning” – Example – MammOptics – LeanLaunch Pad project
- 3. Customer Discovery Customer Discovery Customer Validation Customer Creation Scale Company • Stop selling, start listening – There are no facts inside your building, so get outside • Test your hypotheses – Two are fundamental: problem and product concept 3
- 4. Discovery Phase = Hypothesis Testing • • • • What is the Hypothesis? Where does the Hypothesis come from? Why Test them? How do you test them? 4
- 5. Customer Discovery: Rules • Rule 1: Facts are outside the building, opinions are inside. • Rule 2: Solve a problem that customers say is important and valuable • Rule 3: Does the product concept solve that problem? 5
- 6. 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? • Can you draw a day-in-the-lifeof a customer – before & after your product • Can you draw the org chart of users & buyers 6
- 7. Customer Dev’t Process Time Frames Customer Discovery Customer Validation Customer Creation Scale Company Existing Market: 1 Months - 1 Year Resegmenting a Market: 6 Months - 3 Years New Market: 1 - 3 Years 7
- 8. Customer Discovery Time Frames Customer Discovery Customer Validation Customer Creation Scale Company Existing: 1 - 6 Months Resegmenting: 3 - 12 Months New: 12 - 24 Months 8
- 10. Methodology • Customer Development can take months, or years • Each Step has a set of phases • Plan what you need to learn in writing … so that everyone knows: – – – – what they should be doing when they should do it If they succeeded If they need to do more • These are checklists, not “Inviolable Commandments” 10
- 11. State Your Hypothesis • One-time writing exercise • All other time is spent in front of customers • Assumes you’re smart – ( but guessing ) 11
- 12. building blocks
- 13. TEAM NAME HERE Who are our Key Partners? FILL OUT ALL 9 BOXES OF THE CANVAS IN ORDER 1 THUR 9 What Key Activities do we require? Manufacturing? Software? Supply chain? Who are our key suppliers? What are we getting from them? Giving them? Which of our customer’s problems are we helping to solve? How will we Get, Keep and Grow Customers? Which customer needs are we satisfying What Key Resources we require? Financial, physical, IP, HR? What are the most important costs inherent in our business model? Fixed? Variable? What are the Key Features of our product that match customers problem/need? Who are our most important customers? What are their archetypes? Through which Channels do our Customer Segments want to be reached? What Job do they want us to get done for them? How do we make money? What’s the revenue model? Pricing tactics?
- 14. CUSTOMER SEGMENTS images by JAM
- 15. VALUE PROPOSITIONS images by JAM
- 16. Product (Solution) Hypothesis • • • • • • Features Benefits Product Delivery Schedule Intellectual Property Total Cost of Ownership Dependency Analysis – What is out of our control? 16
- 17. Customer/Problem Hypotheses • • • • • • • • Types of Customers Magnitude of the problem Visionaries A Day in the Life of a customer ( Service Journey) Organizational impact ROI Justification Problem Recognition Minimum Feature Set 17
- 18. Competition Hypotheses • • • • Who is out there? Why are they important? How do customers use them today? What don’t customers like about them? 18
- 20. Distribution/ Pricing Hypotheses • • • • • Distribution Model Distribution Diagram Sales Cycle/Ramp Channel strategy Pricing (ASP, LTV) – Actual Selling Price, Life Time Value • Customer Organization Map • Demand Creation 20
- 21. CUSTOMER RELATIONSHIPS images by JAM
- 22. Demand Creation Hypotheses • How do competitors create demand? • How will you? – – – – • • • • Viral Advertising PR Trade shows Who are influencers/recommendors? Key trade shows? Key trends? Start assembling advisory board 22
- 23. Get keep grow 23
- 24. Get keep grow 24
- 25. Type of Market Hypotheses • Positioning and Differentiation – Existing Market • The product is the basis of competition – New Market • Creating the market is the basis of competition – Resegment - Redefine Existing Market • New segment of the existing market is the basis of competition • :Think: What does my playing field look like? 25
- 26. REVENUE STREAMS images by JAM
- 27. Market/Opportunity Analysis How Big is It?: Market/Opportunity Analysis – Identify a Customer and Market Need – Size the Market – Competitors – Growth Potential
- 28. How Big is the Pie? Total Available Market • How many people would want/need the product? • How large is the market be (in $’s) if they all bought? Total Available Market • How many units would that be? How Do I Find Out? • Industry Analysts – Gartner, Forrester • Wall Street Analysts – Goldman, Morgan
- 29. How Big is My Slice? Served Available Market • How many people need/can use product? • How many people have the money to buy the product Total Available Market Served Available Market • How large would the market be (in $’s) if they all bought? • How many units would that be? How Do I Find Out? • Talk to potential customers
- 30. Total Served Available Available Market Market How Much Can I Eat? Target Market • Who am I going to sell to in year 1, 2 & 3? • How many customers is that? • How large is the market be (in $’s) if they all bought? • How many units would that be? Target Market How Do I Find Out? • Talk to potential customers • Identify and talk to channel partners • Identify and talk to competitors
- 31. Market Size: Summary • Market Size Questions: – How big can this market be? – How much of it can we get? – Market growth rate – Market structure (Mature or in flux?) • Most important: Talk to Customers and Sales Channel • Next important: Market size by competitive approximation – Wall Street analyst reports are great • And : Market research firms Like Forester, Gartner
- 32. KEY RESOURCES images by JAM
- 33. KEY ACTIVITIES images by JAM
- 34. KEY PARTNERS images by JAM
- 35. COST STRUCTURE images by JAM
- 37. :Score Card: ( Hypothesis Summary) test Guess Guess Guess Guess Guess Guess Guess Guess Guess 37
- 38. WHAT DOES THIS “REALLY” LOOK LIKE? 38
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- 48. The Final Presentation How Does This Really Work? Stanford Lean LaunchPad Class 8 Weeks From an Idea to a Business
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- 115. WHAT ARE YOU “REALLY” THINKING? 115
- 116. ! Holy Cow ! ! I don’t know any of this stuff ! ? How deep do I need to go ? :HELP: 116
- 117. :Think: • In practice I call “Version 1.0” a “Splat” – I find it sets the tone/expectation much better – Nb. expectation is that this phase requires 2 to 3 passes ( or iterations ) before its done. • Keys – You want to figure out what you know and don’t know. • :Issue: A lot of people are afraid to “write down” what they don’t know, or accept that they don’t know. – The real work is “Outside” the building to fill in the blanks & convert assumptions into facts 117
- 118. :Aside: Before You Start • Board and Management Buy-In – “Learning & discovery” not execution • Customer Development Team – Not traditional hires • Sufficient funding for 2-3 passes 118
- 119. :Aside: ! Titles Matter ! “Traditional organizations & titles fail” CEO VP Eng VP Mkt VP Sales VP Biz Dev • People equate their titles with their functions – Standard titles describe execution functions • We need new titles consistent with “learning & discovery” functions 119
- 120. :Aside: Customer Development Team “Tasks” CEO VP Product Dev Technical Visionary Business Visionary Business Execution In Front of Customer Positions Nb. This doesn’t mean “VP, Product Dev” doesn’t visit customers 120
- 121. Documenting • “Not too much and not to little” • Get to know yourself – Basic Rule of Thumb • Marketers like to analyse and plan – Ielotsa documentation • Sales likes to live in the field – Ie none 121
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- 123. Design The Tests • These can be simple. • Q. How Accurate is our Service Journey Sketch? • Action: Review our “Service Journey Sketch” with Emergency Staff at “n” hospitals. 123