Which Customers are You Building the Right Product For PCA9

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This session is the opposite of Go-to-Market and Marketing Execution, which focus on "putting lipstick on the pig." We'll frame two ends of a product inception spectrum -- a) design a product that you'd want to buy and b) analyze a market to figure out what they're likely to buy -- and discuss the practical realities between the two.

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Which Customers are You Building the Right Product For PCA9

  1. 1. Which customers are you building the right product for?Paul Teich@paulrteichFB: paul.teichLI: paulteichpaul@productlensllc.comContributing Analystpaul@moorinsightsstrategy.com
  2. 2. Session Format: Ask the ExpertSession Category: Opportunity AnalysisTarget Audience: Essentials, EntrepreneursOpposite of…Go-to-Market and Marketing Execution +8/18/2012 PCA9: Which Customers Are You Building For? 3
  3. 3. Product Inception Spectrum• Design a product that youd want to buy• Analyze a market to figure out what theyre likely to buy Design Design for for Me ThemPractical realities are somewhere in-between8/18/2012 PCA9: Which Customers Are You Building For? 4
  4. 4. What You Want to BuyYou…• speak with one voice• have an easy to characterize pain point• have a usage model in mind to address it• have visualized the resulting product / service• know that at least one person will buy it …and frankly, who wouldn’t?8/18/2012 PCA9: Which Customers Are You Building For? 5
  5. 5. Downside to Small Sample Sizes• Who do you represent?• If you poll your friends, are they a lot like you? false-consensus sample bias confirmation bias group-think locusts forty days of darkness• What is “normal?”8/18/2012 PCA9: Which Customers Are You Building For? 6
  6. 6. What They Want To BuyThey…• don’t speak with one voice• don’t have identified or clearly articulated pain points• have no idea what “usage model” means• can only visualize incremental improvements• have to be convinced that your problem will address their pain points8/18/2012 PCA9: Which Customers Are You Building For? 7
  7. 7. Who Are They?• People (B2C) – Demographic – population characteristics – Behavioral – loyalty, purchase patterns – Psychographic – personality, values, attitudes, interests, lifestyles• Organizations (B2B) – Firmographic – characteristics of orgs8/18/2012 PCA9: Which Customers Are You Building For? 8
  8. 8. How Do You Find Out?• Expert opinion• Ethnography• Focus groups• Talk to people No, really, find some people to talk to…8/18/2012 PCA9: Which Customers Are You Building For? 9
  9. 9. Normal Behavior• Statistically measurable… …as in “normal distribution”• Find a relevant pain point – For a lot of people – Who can afford a solution – At a price that you can serve http://en.wikipedia.org/wiki/File:Discrete_Gaussians.svg8/18/2012 PCA9: Which Customers Are You Building For? 10
  10. 10. Finding the Norm• Measurable Qualitative data can be economically collected• Substantial Audience is usefully large• Homogeneous inward Constituents are enough alike that they behave as a flock (for key attributes)• Heterogeneous outward Constituents are measurably different from others8/18/2012 PCA9: Which Customers Are You Building For? 11
  11. 11. Sizing, Segmenting, and Forecasting Markets• This is a another full session for next PCA• It’s outside the scope of this discussion• http://www.slideshare.net/pteich/sizing- segmenting-and-forecasting-markets• I need to update it at some point…8/18/2012 PCA9: Which Customers Are You Building For? 12
  12. 12. Example: 1999-2002• Pain point: info overload• Developed by/for: geeks• “Personal Insight Network” – Empowers you to quickly and easily use the information that you value• Audiences – Content providers – Corporate portals – Internet service providers8/18/2012 PCA9: Which Customers Are You Building For? 13
  13. 13. Example: 1999-2002• Pain point was emergent – PDAs were luxury items, smartphones did not exist – Consumer households did not yet have multiple PCs – Notebook PCs were still expensive – Etc.• And so the audience was not large – Consumers did not have a high level of pain yet – So we were designing for workers like us• Y2K recession, in 2001 corporations stopped buying8/18/2012 PCA9: Which Customers Are You Building For? 14
  14. 14. Example: 1999-2002 (RIP)• Who succeeded? Evernote.com Evernote is a platform for human memory, designed to help individuals remember everything™ – Early 2008 private beta; service went public in June 2008 – Grew despite downturn by addressing maturing pain points• And who didn’t? Microsoft Office OneNote Keep tabs on your life – Announced in November 2002, shipped one year later – Eventually bundled with Office8/18/2012 PCA9: Which Customers Are You Building For? 15
  15. 15. Creative Tension You must be passionate about your target audience Design Design for for Me Them Be realistic about how many people you are designing for. If you can’t identify with them at some level, then find someone who can.8/18/2012 PCA9: Which Customers Are You Building For? 16

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