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Food on the Table case study at #sllconf by Manuel Rosso
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Food on the Table case study at #sllconf by Manuel Rosso

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Presented by Manuel Rosso at http://sllconf.com on April 23, 2010 in SF

Presented by Manuel Rosso at http://sllconf.com on April 23, 2010 in SF

Published in Business
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  • Randy’s comment – find problem then solve it
  • CODE TO SCALE
  • Dave – get them to hate you

Transcript

  • 1. Is Customer Development Marketing?Startup Lessons Learned ConferenceApril 23, 2010
  • 2.
  • 3. ?
  • 4. Know your customer
    Hit the pavement
    Know the difference between what people say and do
    Master Quant and Qual
    Live your brand
  • 5. Historically ~ 80% of Food Products launched fail
    Cost of launching a Grocery product nationally: $2M to $15M
    Source: Marketing, Witchcraft or Science, Linton Matysiak & Wilkes1997
  • 6. Before WWII most “Package Goods” and food products where locally developed with tight relationships between customers and manufacturers.
    After the war communication and distribution infrastructure maturation led to an explosion in nationally marketed and distributed products.
    Without the same level of customer knowledge the quality of product decisions plummeted.
  • 7. Market Research as the Answer
    For the First time:
    But…In reality:
    Understanding of customer needs improved dramatically.
    Reliable customer profiles could be built at a scalable national level.
    Prototype testing became a viable, scalable option.
    Product organizations could make product decisions on facts, not opinions.
    It takes 4 to 12 weeks to get results to one iteration.
    A simple study can run in the $10s of thousands of dollars
    Can be easily manipulated to tell you what you want to hear
    Discipline is a victim to the rigidity of statistical significance
    only large organizations with extensive resources consistently and effectively use it.
  • 8. Does it work?
    Works Great if you can afford it.
  • 9. Enter the Web
    But…In reality:
    It takes 4 to 12 weeks to get results to one iteration.
    A simple study can run in the $10s of thousands of dollars
    Can be easily manipulated to tell you what you want to hear
    Discipline is a victim to the rigidity of statistical significance
    Days
    A few $ go along way
    Difficult to ignore behavior on a live product
  • 10. Customer Development is P&G style product development evolved to the cost structure and iteration cycles of a startup
  • 11. Customer Discovery at FOTT
    No defined hypothesis
    WE LET IT EMMERGE
    Over 150 direct customer conversations
    20 Kitchen Table discussion groups
  • 12. Customer Validation
    What we did
    Pulled one prospective user from Discovery
    Interviewed her to learn how she solved the problem
    Offered solutions to pain points – never talked about technology
    Started defining product by adding one customer at a time
    Only coded task that when they became too time consuming to do by hand.
    What we learned
    Maximum Viable Product
    Full concierge service
    Extensive customer interactions
    Beyond anything technology can do
    NOT COST EFFECTIVE
    If you can’t get them to buy into the hand holding version, go back and iterate
    Code should only remove bottlenecks (cost)
  • 13. Customer AcquisitionLanding Page Iteration
  • 14. Two Big Lessons from Driving Acquisition
    Invest in traffic to drive learning
    If it takes you a month to get to a statistically significant sample, you need more traffic
    “Best Practices” don’t apply to all customer segments
    Our target customer needs information before moving forward with registration
  • 15. We know we are on the right track
    From Mary:
    “I logged on tonight assuming I could pull up the recipe for sea bass that I had shopped for on Monday. I can't find a way to get that recipe. Instead, you are asking me to rate the recipes I've cooked and then you leave me at a dead end.I'll be logging on to Epicurious to find a recipe that works with the ingredients I've bought. But this is frustrating.”