Pitch Originator - Semifinalist Workshop - Customer Development

powered by Monash

What is Customer Development?

GeneratorTHE

powered by

Classic Chicken

or the Egg problem?

Product ready for sales

vsCustomers to

work with

Hint… the right answer is CUSTOMERs

CustomerDevelopment=frameworkfor1. discovering&validatingtherightmarketforyour

idea2. buildingtherightproductfeaturesthatsolve

customers’needs3. testingthecorrectmodelandtacticsforacquiring

andconvertingcustomers4. deployingtherightorganisation andresourcesto

scalethebusiness

Startups don’t fail because they lack a product. They fail because they lack customers and a profitable business model.

Steve Blank

market

Problem Customers

Willing to Pay For

Your solution

BorrowedfromAdreas Klinger

Is your problem worth solving?

• YoucanIDyourcustomers• Customershaveconfirmedtheywantitandarewillingtopayforit

• YoucandefinetheMVP• Customeriswillingtopay• Youcandelivertheproduct/servicethroughaprofitable(orsustainable)businessmodel

lean methodology

• Findaproblemworthsolving• Findapotentialsolution• Validatethatthesolutionworks• Validatethatthemarketwantsthesolution• Validatethebusinessmodel

hypotheses

• Customer/Problem• Product• Distribution&Pricing• DemandCreation• MarketType• Competitive

• Customer/Problemo Typesofcustomers/archetypesoMagnitudeoftheproblemo Visionarieso Adayinthelifeofacustomero Organisational impacto ROIjustificationo ProblemrecognitionoMinimumfeatureset

• Producto Featureso Benefitso Productdeliveryscheduleo Intellectualpropertyo Totalcostofownershipo Dependencyanalysis

• Producto Positioning&Differentiation

• CompetitionoWhoisoutthere?oWhyaretheyimportant?o Howdocustomersusethemtoday?oWhatdon’tcustomerslikeaboutthem?

• Facetofaceconversations• Don’tpitchyouridea,learnfromyourpotentialcustomers

• MEASUREyourresults

Customer interviews

Before you rock up to an interview…

• Knowwhatyouwanttolearn• Defineyourquestions

o Formulatetestablehypotheseso Clusterbytopic

Step 1: the problem interview

template• Welcome,setthescene• What’sthebiggestchallengeyoufaceasa[relevantrole]?• When’s thelasttimeyou triedtosolvethatproblem?• Canyoutellmeaboutthelasttimethatproblemhappened?• Whyisitaproblemforyou?• Howdidyoufindyourcurrentsolution?• Whatisn’tidealaboutyourcurrentsolution?• I’mactuallyexploringasolution thi [problem].CanIfollowupwithyouifwefinda

viablesolution?• I’mtrying tounderstand thisproblemfromawiderangeofperspectives.Doyou

know1or2otherpeoplewhoarestruggling with[problem]thatImighttalkwith?

http://customerdevlabs.com/script/Checkoutthiscool,freeresource:

Good - bad • DoyouhaveaproblemaboutX?• Tellmeaboutx.

• Doyouthinkitisagoodidea?• Wouldyoubuyaproductwhichsolvedthisproblem?

• Howdoyoucurrentlydealwiththisproblem?• Talkmethroughthelasttimeyouhadthisproblem.

Good - bad

• Howmuchwouldyoupayforthis?• Howmuchmoneydoesthisproblemcostyou?

• Isthereabudgetforit?

• WhoelsecanItalkto?• IsthereanythingyouthinkIshouldhaveasked?

Analysing the results• Soundsgreat.Iloveit!• Brilliant– letmeknowwhenitlaunches!• Iwoulddefinitelybuythat!

• ThereareacouplepeopleIcouldintroduceyoutowhenyou’reready

• Wearespending$500/monthonthis

How do I know when I’m done?

• Whenfeedbackrepetitiveandnotgleaningnewlearnings

Step 2: the solution interview

Before you rock up to an interview…

• Buildademo/MVP• Defineyourquestions

o theproductwiththehighestreturnoninvestmentversusrisko thesmallestthingyoucanbuildthatletsyouquicklymakeit

aroundthebuild/measure/learnloopo thesmallestthingyoucanbuildthatdeliverscustomervalueo theminimumproductthatyoucantaketomarketsuccessfully

(allowingastart-up togeneratepositivecashflow &fundfurtherdevelopmentwork)

GOAL=totestfundamentalbusinesshypotheses

Minimum Viable Product (MVP)

Validating your solutions

• Revisitinterviewees• Discusscurrentsolutions,flaws• Showmockups,interactivedemos• Getimprovementfeedback• Getthemtocommit(withoutahardsell)…oriterate

WANT TO KNOW MORE?GET IN TOUCH!

www.monash.edu/[email protected]/monashGENERATOR

7InnovationWalkAG01-04(ClaytonCampus)[email protected]