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Customer development overview

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How to understand, empathize and validate ideas with your customers.

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Customer development overview

  1. 1. 1 Customer Development How to Understand, Empathize And Validate Ideas With Your Customers Created by: Jacob Nielson Inspired by: Steve Blank, Marty Cagan & Alex Osterwalder, et al
  2. 2. 2 “No facts exist inside the building, only opinions.” Steve Blank
  3. 3. WHAT IS CUSTOMER DEVELOPMENT? • The process of documenting, experimenting and refining your understanding of your customer and their needs • Throughout the process your customer does not change but your concept of who your customer is in your mind does 3
  4. 4. CUSTOMER DEVELOPMENT SHOULD HAPPEN IN PARALLEL TO PRODUCT DEVELOPMENT The idea is to discover and develop a set of reference customers in parallel with discovering and developing the product. 4 Product Development Customer Development Getting out of the building First Concept of the Customer Additional Insight About Them Breakthrough Insight Real Reference Customer - Earlyvangelist
  5. 5. CUSTOMER DEVELOPMENT PROGRAM • Team of 3 to 5 people – Product manager; engineering lead; designer or researcher • Identify 6-8 Earlyvangelist Customers (B2B; 15-20 if B2C) • Customer Benefits – Get a great solution to their problems – Early and significant product input – Early access • Discovery Team Benefits – Users and Customers available for ongoing questions – Available for on-site visits – Agreement to deploy test version provide timely feedback – Agreement to serve as reference, if happy with delivered product 5
  6. 6. USE THE CUSTOMER EMPATHY MAP TO DO INITIAL CUSTOMER DISCOVERY INTERVIEWS 6 • Use for initial customer interviews • Document the customer’s job to be done, pains and gains, what they think and feel, what they see, what they say and do and what they hear
  7. 7. USE VALUE PROPOSITION DESIGN TO DOCUMENT AND EXPERIMENT ON YOUR CUSTOMER HYPOTHESES 7 Note: Pain killers only, no vitamins Solution Canvas Customer Profile Canvas Value Proposition Canvas
  8. 8. 10 MIN EXERCISE: BRAINSTORM CUSTOMER PROFILES 8 Customer Job, Pains & Gains • Brainstorm your initial concept of an Earlyvangelist customer • List – Their job to be done – Their pains – Ways they achieve gains
  9. 9. USE EXPERIMENTS TO VALIDATE / INVALIDATE EACH CUSTOMER HYPOTHESES 9 Document your customer hypotheses, choose the valid/invalid criteria, decide a procedure and document results Validate or InvalidateGet new clients Feel awkward networking New clients call me
  10. 10. USE EXPERIMENTS TO VALIDATE / INVALIDATE EACH CUSTOMER HYPOTHESES 10 Document your customer hypotheses, choose the valid/invalid criteria, decide a procedure and document results Validate or InvalidateGet new clients Feel awkward networking New clients call me X Post on Social Media
  11. 11. 10 MIN EXERCISE: BRAINSTORM SOLUTIONS 11 Products and Services • Brainstorm your initial concept of a solution for your Earlyvangelist • List – The solution title – Pain relievers – Gain creators
  12. 12. USE EXPERIMENTS TO VALIDATE / INVALIDATE EACH SOLUTION HYPOTHESES 12 Document your solution hypotheses, choose the valid/invalid criteria, decide a procedure and document results Validate or Invalidate Automated Posts New Client Referral Engine Social Media Leads
  13. 13. USE MVP TESTS TO VALIDATE PRODUCT IDEAS WITH TARGET CUSTOMERS 13 Problem: People are bad at predicting what they want. Saving Grace: People are good at reacting to things that exist 6 Main Test Types Include: Landing Page Fake Door Video Testing Concierge Testing Wizard of Oz Testing Prototypes (Low, Med, High Fidelity)
  14. 14. 14 10 MIN EXERCISE: DEVISE AN EXPERIMENT TO TEST YOUR HYPOTHESIS Video Testing Validate or Invalidate
  15. 15. IF THE FEEDBACK IS BELOW A 9 OR 10, DON’T TRUST IT • When Testing Customer Pain Hypotheses: – Ask “On a scale of 0-10, how big of a pain is this to you?” • When Testing Solution Hypotheses – Ask “On a scale of 0-10, how likely are you to purchase this solution?” • Anything below a 9 or 10 isn’t worth much – If the solution is mediocre or the pain mild/non-existent, most people will tell you a mid-range number like 3-7 to be nice and not hurt your feelings 15 9 or 10 8 & Below
  16. 16. 16 “You don’t get the answer from any one user test, but every test provides another piece of the puzzle.” Google

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