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The First 2 Steps to the Epiphany

Jason @Evanish
January 30, 2014

Geekdom SF
San Francisco, CA
Who is Jason @Evanish?
100’s of customer development interviews with:

Cofounded:
Blog my learnings at:

JasonEvanish.com
Today’s Topics
Customer Discovery Overview
Customer Development
Interview Process
Customer Validation Overview
Why Customer Development?
•
•
•
•
•
•

Move faster
Reduce risk
Bring process to chaos
Stay in tune with customers
Replace ...
The Core: Learn-Build-Measure
Customer Discovery
Who is Your Customer?
Phase 3:
Test Product
Concept

Phase 4:
Verify

Phase 2:
Test Problem
Hypothesis

Phase 1:
State
Hyp...
Map Your Ecosystem
• Who are the entities in
your business?
• Connect the entities
based on the flow of $$
• How does the ...
The Hypothesis : C-P-S
• Customer
– Who is using your product?

• Problem
– What problem do they have?

• Solution
– How w...
The Intermediate MVP
• Map out the basics of your MVP based on the
solutions from C-P-S
• Identify the riskiest parts & te...
Helping you map it: The Lean Canvas
Why all this work?!?
• Save Time and Money by
discovering early on if
something won’t work.
• Make course adjustments
befo...
Customer Discovery Wrap Up
To Exit means you’ve:
• You’ve identified a problem a
customer wants solved.
• Your product sol...
Learn in detail at:
bit.ly/CustDevInterview

How to do Customer
Development Interviews
A Customer Development Interview
is like a house…
It starts with a good foundation.
Then you build on it.
Finally, you add the roof.
Your foundation is the
The walls are
The roof is your
to
Let’s get down to the nuts and bolts.
Build the foundation: Get to know
the
you’re interviewing.
Person Questions:
• Who are they? What’s their role?
• Where do they interact with peers?
• How do they find new products ...
Learn about them &
their role in the industry
Problem Questions:
• What are your top 3 challenges you
face in your job related to [industry]?
• Why? Tell me more…
• Wha...
Learn if they have the
problem you’re solving
Solution Questions:
• Does this solve any of the problems
we discussed earlier?
• Would you be willing to pay for this?
• ...
Gauge their interest
& gather feedback
Now what?
• Interview in groups of 8-10
people per customer type.
• Summarize notes and review
with others.
• Look for com...
Customer Validation
Can You Sell It?
Phase 3:
Develop
Positioning

Phase 4:
Verify

Phase 2:
Sell to Visionary
Customers

Phase 1:
Get Ready
t...
Not time for Glengarry Yet…

You’re still in learning mode.
…about what customers will buy and how!
Break Down Your Sales Road Map
•
•
•
•
•
•

Who influences a sale?
Who recommends a sale?
Who is the decision maker?
Who i...
The Word According to Blank –
Phase 1 : Get Ready to Sell

Articulate
a Value
Prop

Prelim
Sales &
Collateral
Materials

P...
Map out the Food Chain of your Sale
Find out how to (reliably)
get your foot in the door…
• At what level do you want to
enter?
• How many people on the org
c...
The Word According to Blank –
Phase 2: Sell to Visionary Customers

Contact
Earlyvangelists

Sell to
Earlyvangelists

Refi...
Free != Customer

Customer =
Build Your Sales Roadmap
Get Lead

Send initial
outreach

Qualify a lead

Validate the
lead

Win over IT

Second Pitch

Wi...
The Word According to Blank –
Phase 3: Develop Positioning

Product
Positioning

Company
Positioning

Present to
Analysts ...
Positioning

• Speak the language of your customer
• Written by those that interact directly with the
customer
• Verify wi...
The Word According to Blank –
Phase 4: Verify

Verify the
Product

Verify the
Sales
Roadmap

Verify the
Channel
Roadmap

V...
Productive Paranoia
Questions to Ask…
Product:
- Are you repeatedly losing any deals? Why?
- Are customers satisfied? What else do they
expect...
More Questions to Ask…
Channel:
- Did you factor in the channel costs to
the overall costs of your product?
- How do vario...
Customer Validation Wrap Up
To Exit means you’ve
- Proven you found a Customer
Problem
- Found earlyvangelists that will
p...
Common Sense + Diligent Process + Thought =
Questions? I’m happy to help.
On Twitter: @Evanish
Email me with questions,
mentorship or consulting:
Evanish.J@Gmail.com
...
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview
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The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview

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An outline of the key parts of the first two steps of Steve Blank's Four Steps to the Epiphany as well as how to do customer development interviews.

I'm writing a book on How to Build Customer Driven Products based on tactics like the ones in this presentation. You can sign up to learn more here: http://eepurl.com/RZoO9

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The First 2 Steps to the Epiphany: Customer Discovery, Customer Validation and the Customer Development Interview

  1. 1. The First 2 Steps to the Epiphany Jason @Evanish January 30, 2014 Geekdom SF San Francisco, CA
  2. 2. Who is Jason @Evanish? 100’s of customer development interviews with: Cofounded: Blog my learnings at: JasonEvanish.com
  3. 3. Today’s Topics Customer Discovery Overview Customer Development Interview Process Customer Validation Overview
  4. 4. Why Customer Development? • • • • • • Move faster Reduce risk Bring process to chaos Stay in tune with customers Replace HiPPO & opinions with data Discover the best market opportunities
  5. 5. The Core: Learn-Build-Measure
  6. 6. Customer Discovery
  7. 7. Who is Your Customer? Phase 3: Test Product Concept Phase 4: Verify Phase 2: Test Problem Hypothesis Phase 1: State Hypothesis
  8. 8. Map Your Ecosystem • Who are the entities in your business? • Connect the entities based on the flow of $$ • How does the product move through channels to meet users?
  9. 9. The Hypothesis : C-P-S • Customer – Who is using your product? • Problem – What problem do they have? • Solution – How will you solve the problem? Be Specific. It’s better to be wrong than vague.
  10. 10. The Intermediate MVP • Map out the basics of your MVP based on the solutions from C-P-S • Identify the riskiest parts & test them • This is before you build anything…just map out what you think is the solution BUILD
  11. 11. Helping you map it: The Lean Canvas
  12. 12. Why all this work?!? • Save Time and Money by discovering early on if something won’t work. • Make course adjustments before you build a large product.
  13. 13. Customer Discovery Wrap Up To Exit means you’ve: • You’ve identified a problem a customer wants solved. • Your product solve the customer’s needs. • You believe you have a viable and profitable business model. • You feel you’ve learned enough to go out and sell.
  14. 14. Learn in detail at: bit.ly/CustDevInterview How to do Customer Development Interviews
  15. 15. A Customer Development Interview is like a house…
  16. 16. It starts with a good foundation.
  17. 17. Then you build on it.
  18. 18. Finally, you add the roof.
  19. 19. Your foundation is the
  20. 20. The walls are
  21. 21. The roof is your to
  22. 22. Let’s get down to the nuts and bolts.
  23. 23. Build the foundation: Get to know the you’re interviewing.
  24. 24. Person Questions: • Who are they? What’s their role? • Where do they interact with peers? • How do they find new products for home or work? • How much time do they spend on [Task X]? • How is their budget handled? Let’s write the script
  25. 25. Learn about them & their role in the industry
  26. 26. Problem Questions: • What are your top 3 challenges you face in your job related to [industry]? • Why? Tell me more… • What’s frustrating or time consuming about [problem area]? • If you could wave a magic wand… what would the solution be? Let’s write the script
  27. 27. Learn if they have the problem you’re solving
  28. 28. Solution Questions: • Does this solve any of the problems we discussed earlier? • Would you be willing to pay for this? • Are you interested in signing up to be one of our early users? • What’s your biggest concern with my product? Let’s write the script
  29. 29. Gauge their interest & gather feedback
  30. 30. Now what? • Interview in groups of 8-10 people per customer type. • Summarize notes and review with others. • Look for common patterns matching C-P-S. • Compare to your high level metrics to see if anecdotes match data.
  31. 31. Customer Validation
  32. 32. Can You Sell It? Phase 3: Develop Positioning Phase 4: Verify Phase 2: Sell to Visionary Customers Phase 1: Get Ready to Sell
  33. 33. Not time for Glengarry Yet… You’re still in learning mode. …about what customers will buy and how!
  34. 34. Break Down Your Sales Road Map • • • • • • Who influences a sale? Who recommends a sale? Who is the decision maker? Who is the economic buyer? Who is the saboteur? What is the budget for purchasing your type of product? • How many calls does it take to make a sale • What is the profile of an early customer?
  35. 35. The Word According to Blank – Phase 1 : Get Ready to Sell Articulate a Value Prop Prelim Sales & Collateral Materials Prelim Distribution Channel Plan Prelim Sales Roadmap Hire a Sales Closer Formalize Advisory Board Goal: Take what you learned from Customer Discovery and apply to development of Sales Process
  36. 36. Map out the Food Chain of your Sale
  37. 37. Find out how to (reliably) get your foot in the door… • At what level do you want to enter? • How many people on the org chart need to say yes? • Does each department perceive the problem the same way? • In what order do you need to call on people? • Who can derail the sale?
  38. 38. The Word According to Blank – Phase 2: Sell to Visionary Customers Contact Earlyvangelists Sell to Earlyvangelists Refine Sales Roadmap Sell to Channel Partners Refine Channel Roadmap Goal: Get someone to Pay for your product and learn how to repeat the process.
  39. 39. Free != Customer Customer =
  40. 40. Build Your Sales Roadmap Get Lead Send initial outreach Qualify a lead Validate the lead Win over IT Second Pitch Win over the CIO Preliminary Sales Call Formal Proposal Negotiate & Close
  41. 41. The Word According to Blank – Phase 3: Develop Positioning Product Positioning Company Positioning Present to Analysts & Influencers Goal: Based on problem and sales lessons, optimize positioning for your product & company.
  42. 42. Positioning • Speak the language of your customer • Written by those that interact directly with the customer • Verify with Product team to ensure what’s built meets expectations set
  43. 43. The Word According to Blank – Phase 4: Verify Verify the Product Verify the Sales Roadmap Verify the Channel Roadmap Verify the Business Model Iterate or Exit Goal: Verify all the work you’ve put into Customer Validation to iterate or move onto Customer Creation.
  44. 44. Productive Paranoia
  45. 45. Questions to Ask… Product: - Are you repeatedly losing any deals? Why? - Are customers satisfied? What else do they expect? - Are you building the right features? - Were there any pricing issues? Did you lose customers on pricing? Sales: - Can you verify the sales process and accurately project its success rate? - Can you realistically map your sales pipeline? - Are you closing deals?
  46. 46. More Questions to Ask… Channel: - Did you factor in the channel costs to the overall costs of your product? - How do various channels affect the sales time? - What does your sales force look like? Business Model: - Based on known factors, how profitable is the business? - Will costs be the same as you grow? - How much funding do you need to reach profitability?
  47. 47. Customer Validation Wrap Up To Exit means you’ve - Proven you found a Customer Problem - Found earlyvangelists that will pay you - Found a repeatable and scalable sales process - Demonstrated a viable business model
  48. 48. Common Sense + Diligent Process + Thought =
  49. 49. Questions? I’m happy to help. On Twitter: @Evanish Email me with questions, mentorship or consulting: Evanish.J@Gmail.com Find all my Lean learnings at: JasonEvanish.com/lean-startups/ Find a detailed, blog form of the interview process at: bit.ly/CustDevInterview And tips for finding your first customers at: bit.ly/1stcustomers

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