CUSTOMER DEVELOPMENT
#RomeGoesLean - @LSMRome
MAY 2014 - LuissEnLabs
Roberto Magnifico @RMagnifico
YOU CANNOT UNDERSTAND A SYSTEM UNTIL
YOU TRY TO CHANGE IT
Kurt Lewin (1890-1947)
Problem( Solu+on(
Key(Metrics(
Unique(Value(
Proposi+on(
Unfair(
Advantage(
Channels(
Customer(
Segments(
Cost(Structure( ...
“A startup is a temporary
organization designed to
search for a scalable and
repeatable business model..”
!
!
“..Under con...
“A startup is a temporary
organization designed to
search for a scalable and
repeatable business model..”
!
!
“..Under con...
WHAT ARE WE TRYING TO DISCOVER?
!
A BUSINESS MODEL
!
CUSTOMERS
This discovery journey we have
embarked upon is called:
!
Evidence-Based
Entrepreneurship
Evidence-Based Entrepreneurship
!
Before Customers
Before Revenues
!
Early Evidence of Startup Progress
!
Using Lean Princ...
MOST STARTUPS FAIL
PRODUCTS
MOST STARTUPS FAIL
!
MOST STARTUPS FAIL
BECAUSE THEY RUN OUT OF CASH
!
SIMPLY BECAUSE CUSTOMERS
DON’T BUY THEIR PRODUCTS
!
!
CUSTOMERS DON’T CARE ABOUT
YOUR SOLUTION
CUSTOMERS DON’T CARE ABOUT
YOUR FEATURES
CUSTOMERS DON’T CARE ABOUT
YOUR BELLS ’N’ WHISTLES
CUSTOMERS DON’T CARE ABOUT
YOUR EGO
CUSTOMERS DON’T CARE ABOUT
YOUR PRODUCT
THEY ONLY CARE ABOUT ONE THING
ONLY
THEY ONLY CARE ABOUT THEIR
FUCKING PROBLEMS
IT’S NOT ABOUT THE PROBLEMS
YOU THINK THEY HAVE
GET THEM TO TELL YOU ABOUT THE
PROBLEM/S THEY HAVE
WE DON’T “I THINK”
WE DON’T “I BELIEVE”
IN FACT WE JUST DON’T… KNOW
WE JUST LEARN TO…
LISTEN - LISTEN - LISTEN
CUSTOMER DISCOVERY
EARLY ADOPTERS?
EARLY ADOPTERS:
FRIENDS
NEIGHBOURS
FAMILY
!
STRANGERS
EARLY ADOPTERS:
STRANGERS - WITH A PROBLEM
EARLY ADOPTERS:
STRANGERS - ALREADY SPENDING
CURRENCY TO SOLVE
SO WHERE ARE THESE STRANGERS?
IS IT A B2B OR A B2C?
LISTEN & LEARN
#JUSTDOIT
DO IT FAST
TIME IS YOUR SCARCEST RESOURCE
LISTEN & LEARN
FROM REAL PEOPLE
SO GET OUT OF THE BUILDING
DO SURVEY
DO INTERVIEW
GET REAL CONVERSATIONS GOING
YOU SHOULD ALWAYS BE IN TWO
!
MARKETING NERD AND TECH GEEK
WHY DO YOU WANT TO ASK?
Q1
WHAT IS YOUR END GOAL?
DISCOVER IF THE PROBLEM IS FOR
RETAIL CUSTOMERS
WHAT IS YOUR END GOAL?
DISCOVER IF THE PROBLEM IS FOR
BUSINESS CUSTOMERS
WHAT BEHAVIOUR ARE YOU TRYING
TO CHANGE?
WHAT DECISION DO YOU NEED TO
MAKE?
IS THIS A VALIDATION PHASE?
REMEMBER:
IT’S ABOUT THE FUCKING PROBLEMS
WHO DO YOU WANT TO ASK?
Q2
THE MARKET SEGMENT
THE POPULATION
SAMPLE POPULATION
FOR SURVEY
REMEMBER:
IT’S ABOUT THE FUCKING PROBLEMS
Problem( Solu+on(
Key(Metrics(
Unique(Value(
Proposi+on(
Unfair(
Advantage(
Channels(
Customer(
Segments(
Cost(Structure( ...
(DO YOUR HOMEWORK)
WHAT DO YOU WANT TO ASK?
Q3
OBJECTIVES
SAMPLE POPULATION
AND THE QUESTIONS?
ASK QUESTIONS THAT
MEASURE
TANGIBLES AND/OR INTANGIBLES
IF YOU CANNOT
MEASURE
DON’T ASK
REMEMBER:
IT’S ABOUT THE FUCKING PROBLEMS
HOW DO YOU WANT TO ASK?
Q4
KEEP IT SIMPLE AND CONCISE
YES/NO
HOW?
WHERE?
WHY?
WHEN?
EXAMPLE?
MEASUREABLE
DATA
ANALYSE
WHEN DO YOU WANT TO ASK?
Q5
WORKING HOURS
FREE TIME
LUNCH TIME
Q1. WHY DO YOU WANT TO ASK?
Helps understand
Q2. WHO YOU WANT TO ASK
Helps understand
Q3. WHAT YOU WANT TO ASK
Helps under...
LISTEN
LISTEN
LISTEN
LEARN - BUILD - MEASURE
FAST
LISTEN
LEARN - BUILD - MEASURE - FAST
YOU ARE YOUR CLIENT’S INNOVATOR
LEARN - BUILD - MEASURE - FAST
INCREASE ODDS OF SUCCESS BEFORE WE RUN OUT OF MONEY!
SO GO GET OUT OF THE FUCKING
BUILDING..
..AND LEARN!
Roberto Magnifico
• Netlex - CFO & Founder - www.netlexweb.com
SaaS for the Legal Profession
!
• LVenture Group - Board Mem...
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Customer Development

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Lean Startup Machine - These are the slides I used for the LeanStartupMachine module on Customer Development held in Rome's first edition, in May 2014 at the EnLabs accelerator. My gurus are Steve Blank, Eric Ries, Brant Cooper, Patrick Vlaskovits, Ash Maurya, Trevor Owens and many others I have not listed. Lean startup and lean methodologies have proved to be incredibly invaluable to the development of our startup www.netlexweb.com, a SaaS for the legal profession.

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Customer Development

  1. 1. CUSTOMER DEVELOPMENT #RomeGoesLean - @LSMRome MAY 2014 - LuissEnLabs Roberto Magnifico @RMagnifico
  2. 2. YOU CANNOT UNDERSTAND A SYSTEM UNTIL YOU TRY TO CHANGE IT Kurt Lewin (1890-1947)
  3. 3. Problem( Solu+on( Key(Metrics( Unique(Value( Proposi+on( Unfair( Advantage( Channels( Customer( Segments( Cost(Structure( Revenue(Structure( 1( 1(2( 3( 4( 5( 5( 6( 7( “HOLISTIC” APPROACH = WHO ARE YOUR STAKEHOLDERS? Top 3 Problems Top 3 Solutions Target Segments PRODUCT MARKET
  4. 4. “A startup is a temporary organization designed to search for a scalable and repeatable business model..” ! ! “..Under conditions of extreme uncertainty.” ! What does this mean?
  5. 5. “A startup is a temporary organization designed to search for a scalable and repeatable business model..” ! ! “..Under conditions of extreme uncertainty.” ! We have embarked on a discovery journey!
  6. 6. WHAT ARE WE TRYING TO DISCOVER? ! A BUSINESS MODEL ! CUSTOMERS
  7. 7. This discovery journey we have embarked upon is called: ! Evidence-Based Entrepreneurship
  8. 8. Evidence-Based Entrepreneurship ! Before Customers Before Revenues ! Early Evidence of Startup Progress ! Using Lean Principles
  9. 9. MOST STARTUPS FAIL
  10. 10. PRODUCTS MOST STARTUPS FAIL !
  11. 11. MOST STARTUPS FAIL BECAUSE THEY RUN OUT OF CASH ! SIMPLY BECAUSE CUSTOMERS DON’T BUY THEIR PRODUCTS ! !
  12. 12. CUSTOMERS DON’T CARE ABOUT YOUR SOLUTION
  13. 13. CUSTOMERS DON’T CARE ABOUT YOUR FEATURES
  14. 14. CUSTOMERS DON’T CARE ABOUT YOUR BELLS ’N’ WHISTLES
  15. 15. CUSTOMERS DON’T CARE ABOUT YOUR EGO
  16. 16. CUSTOMERS DON’T CARE ABOUT YOUR PRODUCT
  17. 17. THEY ONLY CARE ABOUT ONE THING ONLY
  18. 18. THEY ONLY CARE ABOUT THEIR FUCKING PROBLEMS
  19. 19. IT’S NOT ABOUT THE PROBLEMS YOU THINK THEY HAVE
  20. 20. GET THEM TO TELL YOU ABOUT THE PROBLEM/S THEY HAVE
  21. 21. WE DON’T “I THINK” WE DON’T “I BELIEVE” IN FACT WE JUST DON’T… KNOW
  22. 22. WE JUST LEARN TO…
  23. 23. LISTEN - LISTEN - LISTEN
  24. 24. CUSTOMER DISCOVERY EARLY ADOPTERS?
  25. 25. EARLY ADOPTERS: FRIENDS NEIGHBOURS FAMILY ! STRANGERS
  26. 26. EARLY ADOPTERS: STRANGERS - WITH A PROBLEM
  27. 27. EARLY ADOPTERS: STRANGERS - ALREADY SPENDING CURRENCY TO SOLVE
  28. 28. SO WHERE ARE THESE STRANGERS?
  29. 29. IS IT A B2B OR A B2C?
  30. 30. LISTEN & LEARN
  31. 31. #JUSTDOIT DO IT FAST
  32. 32. TIME IS YOUR SCARCEST RESOURCE
  33. 33. LISTEN & LEARN FROM REAL PEOPLE
  34. 34. SO GET OUT OF THE BUILDING
  35. 35. DO SURVEY
  36. 36. DO INTERVIEW
  37. 37. GET REAL CONVERSATIONS GOING
  38. 38. YOU SHOULD ALWAYS BE IN TWO ! MARKETING NERD AND TECH GEEK
  39. 39. WHY DO YOU WANT TO ASK? Q1
  40. 40. WHAT IS YOUR END GOAL? DISCOVER IF THE PROBLEM IS FOR RETAIL CUSTOMERS
  41. 41. WHAT IS YOUR END GOAL? DISCOVER IF THE PROBLEM IS FOR BUSINESS CUSTOMERS
  42. 42. WHAT BEHAVIOUR ARE YOU TRYING TO CHANGE?
  43. 43. WHAT DECISION DO YOU NEED TO MAKE?
  44. 44. IS THIS A VALIDATION PHASE?
  45. 45. REMEMBER: IT’S ABOUT THE FUCKING PROBLEMS
  46. 46. WHO DO YOU WANT TO ASK? Q2
  47. 47. THE MARKET SEGMENT THE POPULATION
  48. 48. SAMPLE POPULATION FOR SURVEY
  49. 49. REMEMBER: IT’S ABOUT THE FUCKING PROBLEMS
  50. 50. Problem( Solu+on( Key(Metrics( Unique(Value( Proposi+on( Unfair( Advantage( Channels( Customer( Segments( Cost(Structure( Revenue(Structure( 1( 1(2( 3( 4( 5( 5( 6( 7( “HOLISTIC” APPROACH = WHO ARE YOUR STAKEHOLDERS? Top 3 Problems Top 3 Solutions Target Segments PRODUCT MARKET
  51. 51. (DO YOUR HOMEWORK)
  52. 52. WHAT DO YOU WANT TO ASK? Q3
  53. 53. OBJECTIVES SAMPLE POPULATION AND THE QUESTIONS?
  54. 54. ASK QUESTIONS THAT MEASURE TANGIBLES AND/OR INTANGIBLES
  55. 55. IF YOU CANNOT MEASURE DON’T ASK
  56. 56. REMEMBER: IT’S ABOUT THE FUCKING PROBLEMS
  57. 57. HOW DO YOU WANT TO ASK? Q4
  58. 58. KEEP IT SIMPLE AND CONCISE
  59. 59. YES/NO
  60. 60. HOW? WHERE? WHY? WHEN? EXAMPLE?
  61. 61. MEASUREABLE DATA ANALYSE
  62. 62. WHEN DO YOU WANT TO ASK? Q5
  63. 63. WORKING HOURS
  64. 64. FREE TIME
  65. 65. LUNCH TIME
  66. 66. Q1. WHY DO YOU WANT TO ASK? Helps understand Q2. WHO YOU WANT TO ASK Helps understand Q3. WHAT YOU WANT TO ASK Helps understand Q4. HOW YOU WANT TO ASK Helps understand Q5. WHEN YOU WANT TO ASK
  67. 67. LISTEN LISTEN LISTEN
  68. 68. LEARN - BUILD - MEASURE FAST LISTEN
  69. 69. LEARN - BUILD - MEASURE - FAST YOU ARE YOUR CLIENT’S INNOVATOR
  70. 70. LEARN - BUILD - MEASURE - FAST INCREASE ODDS OF SUCCESS BEFORE WE RUN OUT OF MONEY!
  71. 71. SO GO GET OUT OF THE FUCKING BUILDING.. ..AND LEARN!
  72. 72. Roberto Magnifico • Netlex - CFO & Founder - www.netlexweb.com SaaS for the Legal Profession ! • LVenture Group - Board Member - Co-Founder • InnovAction Lab - Board Member @NetLexWeb @RMagnifico Profile Page
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