This is section one of the learnings from Steve Blanks and Startup Weekends 3 day crash course of SXSW 2013. The program was called NEXT@SXSW and it focused on customer development.

1. Learnings from SXSW
Steve Blank, Bob Dorf & Startup Weekend
March 8th-11th, 2013
Austin Texas

2. Presentation Topics
Section 1 Section 2 Section 3
Business Model Canvas Business Model Canvas Business Model Canvas
(creation and modification) (modification) (modification)
Customer Segments Customer Relationships,
Diagram
Get, Keep, Grow
Value Proposition Channels Here's What We
Thought
H-E-R-I Revenue Model
Here's What We
Learnings and Insights H-E-R-I Learned
Change BMC Learnings and Insights Here's What We Are
Going To Do Next
Highlight Most
Important Learnings

3. Presentation Topics
Section 1
Business Model Canvas
(creation and modification)
Customer Segments
Value Proposition
H-E-R-I
Learnings and Insights
Change BMC

4. Business Model Canvas
Quick Overview. Section 1
Entire business in one place
Always changes as business progresses
Keep it clean and simple
To learn more watch Lessons 1&2 of Steve Blanks Udacity Video (it's free)

5. Customer Segments
Section 1
Bar Owner Bar Goers
Professional bar owners between the 21-35 year old males and females who
ages of 21-55 who are actively looking go out in social groups that own
to improve their existing business. smartphones (Android and iOS).
Customer Segments are a clear description of who your consumer is. Where do
they live, how old are they, what are they interested in?

6. Value Propositions
Section 1
Increased Efficiency
Customer Outreach Convenience
Cash Security Entertainment
Analytics Saving Money
Value Propositions are what you hypothesize will be the best propositions to your
customer segments.

7. Problems
Section 1
Problem Problem
Inefficiencies in transactions Waiting in line for a drink
Keeping up with marketing Closing Tabs
Breakage in transactions Missing Out
Bringing customers in
Increased Efficiency Convenience
Customer Outreach Entertainment
Cash Security Saving Money
Analytics
In order to effectively communicate your Value Proposition it can be helpful to
highlight the problem (don't do this in the BMC).

8. These are all GUESSES
Section 1
An important thing to remember is that everything in your business model canvas
is one big guess. The only way you will KNOW if they are correct is by getting out
of the building and talking to customers face to face.
The Process:
Hypotheses - Here's what we thought
Experiment - Here's what we did
Results - Here's what we found
Iterate - Here's what we're going to do next
The acronym = H-E-R-I

9. Experiment example from Tappr
Section 1
Now that we have some hypotheses (the customer segments and propositions.
Let's run an experiment
Ask bar goers a set of questions that directly measure our hypotheses:
Do you have problems getting your drinks at the bar?
Are you likely to use mobile payments at a bar?
Would you send drinks as gifts to friends?
Would you order on your phone?
What kinds of bars do you usually go to?
Would you pay extra for your drink to be able to pay with your phone? How much?
Do you read bar table tents or posters?
Ask bar owners a similar set of questions:
Would you send free drinks to your customers over the internet?
How much would you pay for our value propositions?
How much do you spend on marketing?
Do you have a loyalty program?
Something to note: Tappr later discovered that their questions were too direct
and data was skewed because of it. Learning - Stay away from leading questions.

10. Questions and Tracking
Section 1
Try using a Google Spreadsheet with all of the interview questions and answers

11. Face-Face > Survey
Section 1
It is extremely important to talk to your potential customers IN PERSON.
The key is to look for a solution that makes their eyes dilate and find your early-
vangelists.
In surveys, customers are given a set list of questions and the conversation doesn't
flow. In person, the conversation can flow to anything and you might discover an
insight you may have never thought of.

12. Hypotheses/Results from Tappr
Section 1
Lay out the hypotheses and results in an easy to read format
Hypotheses pass/fail numbers
Are interested in spending less time in line - 75%
Wants to place orders on their phone - 50%
Bar goers will send gifts to their friends to get them out to the bar - 35%
Bar goers will send gifts to their friends on special occasions - 60%
Bar goers will go to a bar if the bar sends them a free drink - 20%
Results
69% said they'd order on their phone
68% Use mobile payments already
90% Would use mobile payments at a bar
85% Would go to a bar if they received a free drink from the bar
24% have issues getting their drink at the bar
81% would socially send drinks to friends
Now that we are finished with Hypotheses, Experiments and Results. Let's cover
Iterate

13. Iterate Example from Tappr
Section 1
Now that you have some learnings and results, lay out what you are going to do
next and any iterations if you have them. Although it is early, you may have found
some deep insights for your business. Cover them here.
Next Steps
Talk to more bar owners.
Continue getting customer interviews to continue focus more on how mobile payments
and gift drinks would be used.

14. Example
Section 1
See how these business model canvases progress

15. Example
Section 1
See the organized colors with customer segments. The grey signifies it is for both segments

16. Example
Section 1
3/9/13
As learnings and experiments were conducted. The red text shows what has changed.

17. Recommendations
Section 1
Don't launch an MVP until you have spoken with customers
Go out and do your own face to face validation
Watch the pupils dilate
Next Steps
Talk to more bar owners.
Continue getting customer interviews to continue focus more on how mobile payments
and gift drinks would be used.