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Customer Development

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How to use lean startup ideas to do customer development, test your assumptions and deliver what your client actually need?

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Customer Development

  1. 1. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Customer Development @KristapsMors www.kristapsmors.com
  2. 2. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom If I build it, they will come @KristapsMors www.kristapsmors.com
  3. 3. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom If I build it, they will come @KristapsMors www.kristapsmors.com 1. Does problem exists? 2. Is your product solving the problem? 3. What features are needed? 4. Is your go-to-market strategy working?
  4. 4. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Krabjiem.lv @KristapsMors www.kristapsmors.com
  5. 5. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Krabjiem.lv - assumptions @KristapsMors www.kristapsmors.com • Lots of visitors = big advertisers & lots of money • Latvian market is big enough • Type of audience does not matter
  6. 6. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Krabjiem.lv - results @KristapsMors www.kristapsmors.com
  7. 7. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Krabjiem.lv - assumptions @KristapsMors www.kristapsmors.com • Lots of visitors = big advertisers & lots of money • Latvian market is big enough • Type of audience does not matter Spent 3 years to learn our assumptions were wrong and we wasted our time.
  8. 8. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Lean Startup @KristapsMors www.kristapsmors.com "Lean Startup” is a process for validating and invalidating your assumptions as quickly as possible to discover and deliver what people actually want. • Test assumptions fast • Deliver what people need
  9. 9. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Build – measure - learn @KristapsMors www.kristapsmors.com
  10. 10. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom The Customer Development cycle @KristapsMors www.kristapsmors.com
  11. 11. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom@KristapsMors www.kristapsmors.com
  12. 12. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom@KristapsMors www.kristapsmors.com 1. Write down assumptions 2. Test problem 3. Build MVP 4. Test MVP Customer discovery
  13. 13. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom@KristapsMors www.kristapsmors.com • Problem • Product • Customers • Market • Distribution Write down assumptions
  14. 14. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Test problem @KristapsMors www.kristapsmors.com Problem/solution fit • Does this problem exist? • Is this problem worth solving? • Is anyone ready to pay for it?
  15. 15. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Interview – learn about problem @KristapsMors www.kristapsmors.com 1. State the top 3 problems 2. Ask to prioritize problems 3. How they solve the problem today 4. Briefly describe how you might solve the problem 5. Ask Customer whether your approach would solve their problem 6. Would they use your solution if it were free? 7. Would they pay $X/yr? 8. Ask for referrals to other customers
  16. 16. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Build MVP @KristapsMors www.kristapsmors.com 1. Define MVP – slides, mockups, landing page? 2. What is the core functionality? 3. Build it is fast as possible to start learning Check out hello-startup.net > resources: • Design templates • Landing pages
  17. 17. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Why build MVP? @KristapsMors www.kristapsmors.com • To reduce risk • You don’t really know what customers want • Deliver faster • Learn faster
  18. 18. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Test MVP @KristapsMors www.kristapsmors.com • Does this solve customer problem? • Are customers ready to pay for it? Learn from feedback, iterate.
  19. 19. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom@KristapsMors www.kristapsmors.com
  20. 20. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom@KristapsMors www.kristapsmors.com Customer validation • Do you have a sales roadmap? • Monthly, yearly revenue • New clients per month • New leads per month • What will your CAC, CLV be? • Have you got orders that validate your roadmap?
  21. 21. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom The difference between problem and need @KristapsMors www.kristapsmors.com
  22. 22. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom
  23. 23. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom MaxTraffic is a tool that turns abandoning visitors into customers.
  24. 24. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Analysing visitor behaviour Displaying a message Sales increase
  25. 25. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Exit Intent technology tracks visitors cursor movements and can engage him just as he is attempting to leave.
  26. 26. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom
  27. 27. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Our results Increase in sales by 1-3% for larger stores. Increase in sales by 5-6% for small/medium stores.
  28. 28. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Up to 750 000 monthly visitors 599 EUR per month Up to 150 000 monthly visitors 299 EUR per month Subscription plans Up to 30 000 monthly visitors 119 EUR per month Above 750 000 monthly visitors Ask us!
  29. 29. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom When we started 2 years ago: @KristapsMors www.kristapsmors.com • Focused on different functionality, 1 feature only • No pricing model • Targeted almost all online businesses • Went to clients showing mockups • 3 months for free, used clients for testing
  30. 30. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom Changed later @KristapsMors www.kristapsmors.com • Changed pricing from rev-share to subscription • Switched from full-service to self-service • Removed cheaper pricing plan • Rebuilt user interface 2x times • Removed unused features • Started targeting 2 segments
  31. 31. www.maxtraffic.comMaxTrafficCom @MaxTrafficCom 5 employees 60+ customers 60k EUR revenue in 2014 120k EUR revenue in 2015

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