Intro to Customer Development (for Libraries)
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The document outlines the customer development framework, which is a four-step process for testing assumptions about a product or service idea: customer discovery, customer validation, company creation, and company building. It discusses applying this framework to libraries and introducing virtual learning commons. Key steps are articulating the customer problem and solution, designing a business model, talking to potential customers, building a minimum viable product, and continuously validating learning through customer feedback to pivot or iterate the concept. The goal is to make better decisions based on tested learning rather than untested assumptions.
Intro to Customer Development (for Libraries)
- 1. Customer development Introduction to M.J. D’Elia U of Guelph CIL 2015
- 2. Intro
- 3. Agenda ‣ Fair warning ‣ The Five Ws ‣ Framework ‣ Get started ‣ Final thoughts
- 4. objectives ‣ Outline the customer development framework ‣ Apply customer development to libraries ‣ Introduce steps to get started
- 6. Customer development we don’t like this word this word has too many meanings
- 7. the five ws
- 8. 1. what ‣ Four-step framework ‣ From idea through execution ‣ Process for testing your assumptions ‣ Focus is on validating your learning with facts
- 9. 2. where ‣ Studies of serial entrepreneurs (Stanford) ‣ Popular in the tech industry (Silicon Valley)
- 10. 3. Who
- 11. 3. Who
- 12. 4. why ‣ Identify a market for your product/service ‣ Build the right product features ‣ Solve a customer need ‣ Test methods for acquiring new customers ‣ Deploy resources to scale the business
- 13. 5. when ‣ Build a tangible product/service ‣ Try to solve a problem in a unique way ‣ Challenge dominant assumptions ‣ Incorporate feedback from potential customers
- 14. Example ‣ Virtual Learning Commons ‣ Need to build something ‣ Need to figure out our unique offer ‣ Need shift our organization’s thinking ‣ Need to understand student perspective
- 15. framework
- 16. framework stages customer discovery customer validation company creation company building Cooper & Vlaskovits, 2010 remember troublesome terminology
- 17. customer discovery customer discovery problem- solution fit proposed mvp Cooper & Vlaskovits, 2010 Objective Find a product solves a problem for an identified group of users. 1
- 18. customer discovery customer discovery problem- solution fit proposed mvp Cooper & Vlaskovits, 2010 Activities -Talk to potential customers -Understand the problem -Propose solutions -Test assumptions -Build prototypes 1
- 19. customer discovery customer discovery problem- solution fit proposed mvp Cooper & Vlaskovits, 2010 Minimum Viable Product -Functioning prototype -Attempt to make the idea tangible -Just the features to reach the market -Aimed at early adopters 1
- 20. customer validation customer validation product- market fit biz model sales map Cooper & Vlaskovits, 2010 Objective Identify a market that is large enough to build a viable business. 2
- 21. customer validation customer validation product- market fit biz model sales map Cooper & Vlaskovits, 2010 Activities -Find customers who will pay -Map your biz model -Clarify market opportunity -Test customer acquisition strategy 2
- 22. company creation company creation scale execution Cooper & Vlaskovits, 2010 Objective Find repeatable sales and start expanding the business. 3
- 23. company creation company creation scale execution Cooper & Vlaskovits, 2010 Activities -Sell your product -Hire people -Find resources and investment 3
- 24. company building company building scale organization scale operations Cooper & Vlaskovits, 2010 Objective Grow company and establish operational processes to support expansion. 4
- 25. company building company building scale organization scale operations Cooper & Vlaskovits, 2010 Activities -Provide resources -Divide labor into functions -Build organizational structure -Expand operations 4
- 26. framework overview customer discovery customer validation company creation company building problem- solution fit proposed mvp product- market fit biz model sales map scale execution scale organization scale operations Cooper & Vlaskovits, 2010
- 27. framework overview customer discovery customer validation company creation company building problem- solution fit proposed mvp product- market fit biz model sales map scale execution scale organization scale operations Cooper & Vlaskovits, 2010 pivot
- 28. what is a Pivot? “...a structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth.” ~ Eric Ries, The Lean Startup
- 29. change based on learning “A pivot requires that we keep one foot rooted in what we’ve learned so far, while making a fundamental change in strategy in order to seek even greater validated learning.” ~ Eric Ries, The Lean Startup
- 30. get started
- 31. EXAMPLE ‣ Virtual Learning Commons ‣ Need to build something ‣ Need to figure out our unique offer ‣ Need a unique take on e-learning ‣ Need to understand student perspective
- 32. step one ‣ Articulate your customer-problem-solution ‣ Establishes your core hypotheses
- 33. step one VLC ‣ Articulate your customer-problem-solution ‣ Customer = students ‣ Problem = accessible learning support ‣ Solution = online platform
- 34. step two ‣ Design your business model ‣ Clarify why people will use your product ‣ State the value proposition
- 35. step two VLC ‣ Design your business model ‣ Relationship: Self-serve ‣ Value: Accessible; Improve productivity ‣ Resources: Engaging content; infrastructure ‣ Activities: Building content
- 36. Campus units Library teams Faculty building content accessible, relevant help self-serve web social media students Value-driven (but cost conscious) Staff, technology, acquisition More users More repeat users infrastructure media skills improved performance (grades)
- 37. step three ‣ Talk to everyone about your idea ‣ Get feedback from everyone ‣ Look for experts
- 38. step three VLC ‣ Talk to everyone about your idea ‣ Library staff, campus units, family friends, etc. ‣ Found experts (e.g. corporate learning)
- 39. step four ‣ Interview prospective customers ‣ Try to understand the root problems ‣ Look for early adopters
- 40. step four VLC ‣ Interview prospective customers ‣ Student interviews ‣ Student card sorts
- 41. step five ‣ Compile data and evaluate feedback ‣ Adjust your hypotheses based on data ‣ Test new hypotheses ‣ Validate learning
- 42. step five VLC ‣ Compile data and evaluate feedback ‣ Identified top ten student pains and gains ‣ Refine strategy
- 44. step six ‣ Build an MVP and launch ‣ Make a product that people can use ‣ Minimal feature set
- 45. step six VLC ‣ Build an MVP and launch ‣ Find some spare server space ‣ Adopt an existing web template ‣ Experiment with content creation
- 46. step seven ‣ Compile data and evaluate behaviour ‣ Monitor what customers do ‣ Adjust MVP based on data ‣ Iterate: Build-measure-learn
- 47. step seven VLC ‣ Compile data and evaluate behaviour ‣ Measure web visits ‣ Track behavior ‣ Refine prototype
- 48. final thoughts
- 49. in short Customer development is a process designed to help you “make better decisions based on tested hypotheses, rather than untested assumptions.” ~ Cooper & Vlaskovits, 2010
- 50. scientific method ‣ Observe and describe phenomenon ‣ Formulate hypothesis to explain ‣ Predict results of new observations ‣ Measure prediction using tests ‣ Formulate new hypothesis
- 52. References Blank, S. & Dorf, B. (2012). The Startup Owner’s Manual. Pescadero, CA: K&S Ranch. Cooper, B. & Vlaskovits, P. (2010). The Entrepreneur’s Guide to Customer Development. Newport Beach, CA: Cooper-Vlaskovits Osterwalder, A. & Pigneur, Y. (2010). Business model generation. Hoboken, NJ: Wiley. Ries, E. (2011). The Lean Startup. New York: Crown Business.