Customer Development Model (CDM) is a four-step framework developed for discovering and validating the right market and the right product features that solve customers’ needs, testing the correct model, and deploying the right organization to scale the business. In these slides, we go through a case study to illustrate CDM elements and procedures.

1. Customer Development Model
Business Case
Madiha Nasrullah
Muhammad Mustafa
March, 2018

2. About Us
Madiha Nasrullah
• MBA Grad’16
• Fulbright Scholar
• 4+ years of professional
experience in marketing,
consulting, strategy and
start-up business
Muhammad Mustafa
• MBA Grad’15, MSc ‘19
• 6+ years of professional
experience in telecom
engineering, technology,
innovation development,
and e-commerce

4. Story of Nazdeeq
Enabling cross border e-commerce by solving 3 problems: international payments,
international shipping and customs clearance.

5. Customer Discovery
● Does this problem really exist, or is it just in your head?

6. Customer Discovery - The ‘Go-Ahead’ Answer
Online Shopping? Frequency of Online Shopping?

7. Customer Discovery - The ‘Go-Ahead’ Answer
Concept Likability? Usage Interest?

8. Customer Discovery - Demographics

9. Customer Discovery - Payments/Supply Chain

10. Customer Discovery

11. Customer Discovery - Pricing

12. Customer Discovery - Conclusion
- Pricing 10% of the item price
- Supply 10-14 business days
- Advance Payments
- Customer Service
- Cash is going to be value proposition

13. Customer Discovery - Conclusion
Who is the customer
Ages: 25 - 35 years
Cities: KLI
Psychographics: Undergrads, Professionals, Lifestyle (sports, enthusiasts,
parents)

14. Customer Validation

15. Customer Validation

16. Customer Validation - Demographics

17. Customer Validation - Pricing
Item Price + Additional%?

18. Customer Validation - Payments & Supply Chain
- 10-14 business days.
- People comfortable paying in advance/debit car to be integrated soon

19. Customer Discovery Vs. Validation
Customer segmentation:
- Variety
- Authenticity
- Looking for something cheaper
Cities: Nationwide (not KLI anymore)
Facebook Lookalikes: 470,000

20. WORKSHOP TIME!
25 mins

21. Customer Creation - Branding

22. Type of the market
1. Entering an existing market
2. Entering as a low cost entrant
3. Entering as a niche player
4. Entering a totally new market
Do you know where Nazdeeq belongs?

23. Market Positioning
Question asked to target market: What market lacks?
- Price transparency
- Convenience
- Customer Support
- Technology

24. Competitive Advantage

25. Synchronize Product & Customer Development
- Product development is a market driven process
- Great products are designed by customers

26. Product Development Models

27. Branding: What is the first thing come to mind
when mentioning Nazdeeq
Colors, shape, taste, sound, action
How customers perceived Nazdeeq:
1. Transparency
2. Simplicity
3. Friendly
4. Creativity
5. Responsibility

28. Nazdeeq logo, color code, & theme

29. Deciding on front page

30. Final Design

31. A new design to be implemented very soon

32. How customer is involved in Products Dev.
A/B Testing
Heat Maps
Behavior Observation
Focus Groups
Interviews
Direct Commenting

33. Ideal Customer Experience
Website Experience
• Start-to-end buying
process for the
customer is a 3 click
experience:
1. Press enter once the
product name is entered
2. Click on the item
he/she wants to buy
3. Proceed to checkout
• The customer finds this
process uncomplicated
and easy to understand
Purchase Point
• The customer finds the
final quote on our
website a great value for
money
• Finds the delivery time
reasonable
• Any questions regarding
the payment and the
shipping is answered by
the customer service
timely, politely and
nicely.
Product Receiving
• Customer is happy with
the product received
because:
1. It was delivered on
time
2. The product received
is of good quality and
exactly what the
customer had ordered
3. The product usage
experience is mostly like
what the reviews
suggest on Amazon

34. Product Launch

35. Go-to-Marketing Strategy
- STP: Segmentation, Targeting, and positioning
- Tactical Marketing Plan:
- Product Features
- Promotion
- Price
- Sales Channels
- Service

36. Marketing Channels

37. Marketing Plan

38. Customer related KPIs
- Number of Orders
- Transaction Value per customer
- Customer Acquisition Cost
- Customer Lifetime Value
- Monthly Recurring Revenue
- Customer retention rate
- Cart abandoned ratio
- Customer satisfaction level

39. Company Building

40. Move from a tested product to creating a
company
- Mainstream customers
- Manage Sales
- Review Management and build centric culture
- Set department mission Statement, roles, and structure
- Create company and leadership culture

41. Thank You!