1. Welcome to Customer Development Steve Blank Stanford - School of Engineering U.C. Berkeley - Haas School Of Business www.steveblank.com Twitter: sgblank Slides at: slideshare.net/sblank
3. I Drew This CustomerDiscovery Company Building CustomerValidation Customer Creation Pivot
4. I Called It:Customer Development CustomerDiscovery Company Building CustomerValidation Customer Creation Pivot
5. This Talk is Based On Business Model Generation Four Steps to the Epiphany Lean Startup
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7. i.e. Product/Market fit- Repeatable sales model - Managers hired What’s A Startup? Search Execute A Startup is a temporary organization used to search for a repeatable and scalable business model
103. Customer DevelopmentThe Search For the Business Model Company Building CustomerDiscovery CustomerValidation Customer Creation Pivot
104. Customer Discovery CustomerDiscovery CustomerValidation Company Building CustomerCreation Stop selling, start listening Test your hypotheses Continuous Discovery Done by founders
133. The Pivot Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Publishing Doctors: Earlier detection Price Accuracy Patients: Radiation Free Non-Invasive A Pivot is the change of one or more Business Model Canvas Components Leading doctors Key Opinion Leaders 3rd party manufacturers Distributors Breast Cancer Foundations ACOGACS OB/GYNs PCPs Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Capital Equipment Sales and disposable item Per use fees
134. How Does This Really Work?Stanford Lean LaunchPad Class
135. How Does This Really Work?Stanford Lean LaunchPad Class 8 Weeks From an Idea to a Business
151. Found weeding in organic crops is HUGE problem; 50 - 75% of costs Crews of 100s-1000 Back-breaking task (Ilegal) labor harder to get 1-5 weedings per year/field $250-3,500 per acre and increasing Food contamination risk
153. Autonomous vehiclesWEEDING Dealers sell, installs and supports customer Co. trains dealers, supports dealers - Innovation - Customer Education - Dealer training - Low density vegetable growers - High density vegetable growers - Thinning operations - Conventional vegetables We reduce operating cost - Labor reduction (100 to 1) - Reduced risk of contamination - Mitigate labor availability concerns - Ag Dealers - Ag Service providers - Research labs - Ag Dealers - Ag Service providers Engineers on Machine Vision Two problems: - Identification - Elimination Asset sale Our revenue stream derives from selling the equipment Dealer discount COGS seek a 50-60% Gross Margin Heavy R&D investment
182. Visit Highlights Above: Organic Carrots, 7wks. Top right: Conventional carrots Bottom Right: Very weedy. Will require multiple passes of hand weeding
183. Visit Highlights Carrot vs. Weeds Due to small root systems, carrots have no chance against weeds
228. World Ag Expo interviews:the need is real and wide spread 10+ interviews at show Everyone confirmed the need Robocrop, UK based, crude competitor sells for $171 K Revenue Stream Mid to small growers prefer a service Large growers prefer to buy, but OK with service until technology is proven Charging for labor cost saved is OK, as we provide other benefits (food safety, labor availability) Confidential
264. MammOptics Business Model Canvas 1 of 4 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Hospitals Leading doctors 3rd party manufacturers Distributors Pioneering radiologists in hospitals Radiation-free Earlier detection Non-invasive IP Leading doctors Technical Expertise Direct sales to hospitals Product Development Clinical trials Operating Costs Capital equipment sales and disposable item
265. MammOptics MammOptics Business Model Canvas 1 of 4 Business Model Canvas 1 of 4 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Initial guess Initial guess Hospitals Leading doctors 3rd party manufacturers Distributors Pioneering radiologists in hospitals Radiation-free Earlier detection Non-invasive Test: Customer segment Value proposition Initial guess IP Leading doctors Technical Expertise Direct sales to hospitals Product Development Clinical trials Operating Costs Initial guess Capital equipment sales and disposable item
267. MammOptics Excursions into hospitals Debra Ikeda Jason Davies Jafi Alissa Lipson Sunita Pal Leading doctors 6 women >40 8 women <40 Patients Alicia X-ray mammography Technicians Hospital Managers Paul Billings Holly V. Gautier
271. MammOptics Private practice purchasing decision tree Private practice Faster adoption rate Attractive value proposition ✔
272. MammOptics Business Model Canvas 2 of 4 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Doctors: Earlier detection Price Accuracy Patients: Radiation Free Non-Invasive Hospitals (Capital Spending Committee) Leading doctors 3rd party manufacturers Distributors Research Hospitals Pioneering Doctors Hospitals OB/GYNs PCPs Direct Sales to doctors IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Capital Equipment Sales and disposable item
273. MammOptics Business Model Canvas 2 of 4 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Doctors: Earlier detection Price Accuracy Patients: Radiation Free Non-Invasive Hospitals (Capital Spending Committee) Leading doctors 3rd party manufacturers Distributors Research Hospitals Pioneering Doctors Hospitals OB/GYNs PCPs How do we get to our customer? Need sensitivity and specificity Direct Sales to doctors IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Capital Equipment Sales and disposable item
274. Getting to our customer The world of direct sales and medical marketing
275. MammOptics Interviews Breast Cancer Advocacy Groups Be Bright Pink Jennifer Glover Dr. Cindy Woo Dr. Jags Powers Dr. Aaron Shuvkan OB/GYNs Katrina Bell Tanay Dudhela Jed Hwang Medical Sales FDA/Clinical Trials Phyllis Whitely Carl Simpson
277. MammOptics Marketing Strong influence on doctors via ACOG Standard of Care Strongly influenced by KOLs Access to ACOG by former member
278. MammOptics Marketing Researchers with strong peer recommendations Researchers conducting important clinical trials Outsourced survey research Researchers with numerous publications
279. MammOptics Marketing Focus on prominent journals Need two big publications Choose KOL as Principal Investigators (PI)
280. MammOptics Marketing Effective method for educating doctors Workshop must be approved by ACOG Doctors required to attend workshops Taught by objective medical experts
281. MammOptics Marketing ACOG Annual Clinical Meeting Opportunity for feedback from doctors Miami Breast Cancer Conference
282. MammOptics Marketing Trusted information source for patients Access to media outlets Critical opinion leader for technology adoption
288. MammOptics Pricing Strategy Equipment Lease model Per-use model Consumable Cost of the device $50,000 $5,000 $5,000 $25,000 Service per year $3,000 $10,000 0 0 Per-use fee 0 0 $50 0 Consumable 0 0 0 $20
289. MammOptics Pricing Strategy Approved by customers and investors Equipment Lease model Per-use model Consumable Cost of the device $50,000 $5,000 $5,000 $25,000 Service per year $3,000 $10,000 0 0 Per-use fee 0 0 $50 0 Consumable 0 0 0 $20
290. MammOptics Customer Workflow Current market Insurance Mammography Radiologist Hospital Administration Technician ACOG ACS Doctor specialty committee
291. MammOptics Customer Workflow Current market But what would happen if we replace mammography? Insurance Mammography Radiologist Hospital Administration Technician ACOG ACS Doctor specialty committee
292. MammOptics Customer Workflow Insurance Mammography Radiologist Breast Radiologists Hospitals Technicians Loss of jobs Eliminates loss leader Puts emphasis on biopsies Loss of jobs Hospital Administration Technician ACOG ACS Doctor specialty committee
299. MammOptics Business Model Canvas 3 of 4 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Publishing Doctors: Earlier detection Price Accuracy Patients: Radiation Free Non-Invasive Leading doctors Key Opinion Leaders 3rd party manufacturers Distributors Breast Cancer Foundations ACOGACS OB/GYNs PCPs Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Capital Equipment Sales and disposable item Per use fees
300. MammOptics Business Model Canvas 3 of 4 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA ReimbursementPublishing Doctors: Earlier detection Price Accuracy Patients: Radiation Free Non-Invasive Leading doctors Key Opinion Leaders 3rd party manufacturers Distributors Breast Cancer Foundations ACOGACS OB/GYNs PCPs Learned how to reach the customer How do we build a company based on this? Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Capital Equipment Sales and disposable item Per use fees
302. MammOptics Interviews Stanford StatisticsSteve Axelrod Marga Ortigas-Wedekind FDA Clinical Trials Nick Mourlas Don Archambault Manufacturing Shannon Bergstedt Ali Habib Reimbursement Venture Capitalists Dana Mead Bill Starling Doctors/Sales Dr. Aron Shuftan Jed Hwang Michael J. Nohr
316. MammOptics MammOptics Financial / Operations Timeline 2016 2012 2013 2014 2015 2017 2018 M&A / IPO $50 MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q3 Series D $35 MM $40M Series C $30.5 MM $30M $20M Cash Reserve Series B $9 MM $15M Series A $3.5 MM $10M $5M Financial timeline System Initialize Launch Regulatory / Clinical Marketable Product Proof of Concept Second Release Beta Prototype Design Milestones 1st Release Test 2nd Release Test Beta-Version Testing Laboratory Prototype Publication Publication Clinical Results Post-Market Clinical Studies Pilot Studies US Pivotal Clinical Trials Clinical Milestones US Interim Trials Non-Specific Codes Provisional Patent IRB / IDE Specific Codes (Cat. I CPT / APC) Cat III CPT FDA – Class II – 510 (k) with Clinical Trials Regulatory/ IP Milestones Application and System Patents Initial Product Launch IC and Processing Patents Technology Licensing 145 12/4/2009
319. MammOptics MammOptics Financial / Operations Timeline 2016 2012 2013 2014 2015 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q3 $40M $30M $20M Cash Reserve Series B $9 MM $15M Series A $3.5 MM $10M $5M System Regulatory / Clinical Marketable Product Beta Prototype Design Milestones Beta-Version Testing Laboratory Prototype Pilot Studies Clinical Milestones IRB / IDE Regulatory/ IP Milestones Application and System Patents IC and Processing Patents 148 12/4/2009
320. MammOptics MammOptics Financial / Operations Timeline 2016 2012 2013 2014 2015 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q3 $40M Series C $30.5 MM $30M $20M Cash Reserve Series B $9 MM $15M $10M $5M System Regulatory / Clinical Second Release Design Milestones 1st Release Test Publication Pilot Studies US Pivotal Clinical Trials Clinical Milestones US Interim Trials IRB / IDE Cat III CPT Regulatory/ IP Milestones Application and System Patents IC and Processing Patents 149
321. MammOptics MammOptics Financial / Operations Timeline 2016 2012 2013 2014 2015 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q3 Series D $35 MM $40M Series C $30.5 MM $30M $20M Cash Reserve $15M $10M $5M Launch Regulatory / Clinical Second Release Design Milestones 2nd Release Test Publication Publication Clinical Results US Pivotal Clinical Trials Clinical Milestones US Interim Trials Non-Specific Codes FDA – Class II – 510 (k) with Clinical Trials Regulatory/ IP Milestones Initial Product Launch 150 12/4/2009
322. MammOptics MammOptics Financial / Operations Timeline 2016 2012 2013 2014 2015 2017 2018 M&A / IPO $50 MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q3 Series D $35 MM $40M $30M $20M Cash Reserve $15M $10M $5M Launch Regulatory / Clinical Design Milestones Publication Post-Market Clinical Studies Clinical Results Clinical Milestones Non-Specific Codes Specific Codes (Cat. I CPT / APC) FDA – Class II – 510 (k) with Clinical Trials Regulatory/ IP Milestones Initial Product Launch 12/4/2009
323. MammOptics MammOptics Financial / Operations Timeline 2016 2012 2013 2014 2015 2017 2018 M&A / IPO $50 MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q3 Series D $35 MM $40M Series C $30.5 MM $30M $20M Cash Reserve Series B $9 MM $15M Series A $3.5 MM $10M $5M System Initialize Launch Regulatory / Clinical Marketable Product Proof of Concept Second Release Beta Prototype Design Milestones 1st Release Test Beta-Version Testing 2nd Release Test Laboratory Prototype Publication Publication Post-Market Clinical Studies Clinical Results Pilot Studies US Pivotal Clinical Trials Clinical Milestones US Interim Trials Non-Specific Codes Provisional Patent IRB / IDE Specific Codes (Cat. I CPT / APC) Cat III CPT FDA – Class II – 510 (k) with Clinical Trials Regulatory/ IP Milestones Application and System Patents Initial Product Launch IC and Processing Patents Technology Licensing 152 12/4/2009
324. MammOptics Business Model Canvas 4 of 4 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Reimbursement Publishing Doctors: Earlier detection Price Accuracy Immediate Results Patients: Radiation Free Non-Invasive KOLs 3rd party manufacturers Distributors Breast Cancer Foundations ACOGACS Clinical trial designer OB/GYNs PCPs Direct Sales to hospitals Distributor Online IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Per use fees
325. MammOptics Business Model Canvas 4 of 4 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Reimbursement Publishing KOLs 3rd party manufacturers Breast Cancer Foundations ACOGACS Clinical trial designer Earlier detection Non invasive Price Accuracy Immediate Results OB/GYNs PCPs Final iteration of our business model But… need to think about the big picture… Direct Sales to hospitals Distributor Online IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Per use fees
326. MammOptics Business Model Canvas 1 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Hospitals Leading doctors 3rd party manufacturers Distributors Radiation-free Earlier detection Non invasive Pioneering Doctors Hospitals Direct Sales to hospitals IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Capital Equipment Sales and disposable item
327. MammOptics Business Model Canvas 2 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Hospitals Leading doctors 3rd party manufacturers Distributors Research Hospitals Radiation-free Earlier detection Non invasive Pioneering Doctors Hospitals Direct Sales to hospitals IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Capital Equipment Sales and disposable item
328. MammOptics Business Model Canvas 3 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Doctors: Earlier detection Price Accuracy Patients: Radiation Free Non-Invasive Hospitals (Capital Spending Committee) Leading doctors 3rd party manufacturers Distributors Research Hospitals Pioneering Doctors Hospitals Direct Sales to hospitals IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Capital Equipment Sales and disposable item
329. MammOptics Business Model Canvas 4 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Doctors: Earlier detection Price Accuracy Immediate Results Patients: Radiation Free Non-Invasive Hospitals (Capital Spending Committee) Leading doctors 3rd party manufacturers Distributors Research Hospitals Breast Cancer Foundations Pioneering Doctors Hospitals OB/GYNs PCPs Direct Sales to hospitals IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Capital Equipment Sales and disposable item
330. MammOptics Business Model Canvas 5 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA ReimbursementPublishing Doctors: Earlier detection Price Accuracy Patients: Radiation Free Non-Invasive Leading doctors Key Opinion Leaders 3rd party manufacturers Distributors Breast Cancer Foundations ACOGACS OB/GYNs PCPs Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Capital Equipment Sales and disposable item
331. MammOptics Business Model Canvas 6 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Reimbursement Publishing Doctors: Earlier detection Price Accuracy Immediate Results Patients: Radiation Free Non-Invasive KOLs 3rd party manufacturers Distributors Breast Cancer Foundations ACOGACS OB/GYNs PCPs Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Capital Equipment Sales and disposable item Per use fees
332. MammOptics Business Model Canvas 7 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Reimbursement Publishing Doctors: Earlier detection Price Accuracy Immediate Results Patients: Radiation Free Non-Invasive KOLs 3rd party manufacturers Distributors Breast Cancer Foundations ACOGACS Clinical trial designer OB/GYNs PCPs Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Per use fees
333. MammOptics Business Model Canvas 8 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Reimbursement Publishing Doctors: Earlier detection Price Accuracy Immediate Results Patients: Radiation Free Non-Invasive KOLs 3rd party manufacturers (local) Breast Cancer Foundations ACOGACS Clinical trial designer OB/GYNs PCPs Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Per use fees
334. MammOptics Business Model Canvas 9 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Reimbursement Publishing Doctors: Earlier detection Price Accuracy Immediate Results Patients: Radiation Free Non-Invasive KOLs 3rd party manufacturers (local) Breast Cancer Foundations ACOGACS Clinical trial designer OB/GYNs PCPs Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Per use fees
338. Original Idea: Personal Digital Libraries Import, organize and share thousands of digital papers
339. something-something-something.com Original idea Invincible Business Model: Version 1.0 SHORT TERMResearchers Lawyers Scientists LONG TERMAvid book readers Professionals Import, organize and share thousands of papers FB/TW posts from users you know Company blog, FB, TW, support forums Targeted marketing Product development Constant iteration & testing Libraries, Universities, Research Centers Bloggers and media targeting customer segment Academic Database providers Affiliate program SEO/SEM/SM IE/FF/Chrome App Stores Developers Marketers AWS Infrastructure SEM Eng & Marketing OpEx Affiliate program fees Licensing Subscription fees Ad revenue
397. something-something-something.com Original idea Invincible Business Model: Version 2.0 Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel) Developing trusted advice and advisors Web marketing Affiliate partnerships Constant iteration & testing FB/TW posts from users you know Company blog, FB, TW accounts Discover online goods recommended by friends at the lowest possible price from trusted vendors Bloggers and Media targeting customer segment Retail marketing partners IE/FF/Chrome teams Affiliate Program Providers Affiliate program SEO/SEM/SM IE/FF/Chrome App Stores Developers Marketers Content Library Install base Readership base AWS Infrastructure SEM Eng & Marketing OpEx Affiliate program fees Licensing Subscription fees Ad revenue
440. something-something-something.com Original idea Invincible Business Model: Version 2.0 Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel) Developing trusted advice and advisors Web marketing Affiliate partnerships Constant iteration & testing FB/TW posts from users you know Company blog, FB, TW accounts Discover online goods recommended by friends at the lowest possible price from trusted vendors Bloggers and Media targeting customer segment Retail marketing partners IE/FF/Chrome teams Affiliate Program Providers Affiliate program SEO/SEM/SM IE/FF/Chrome App Stores Developers Marketers Content Library Install base Readership base AWS Infrastructure SEM Eng & Marketing OpEx Affiliate program fees Licensing Subscription fees Ad revenue
450. Needs Addressed Super easy to install and use. I really did enjoy it! Great idea! I will keep the extension installed because I do think this is practical! I could see myself using this regularly
467. How? Customer Development The Process Narrative Interviews Surveys Videos Prototypes Business Model Canvas Scorekeeping Real-time Feedback Physical Reality Checks Skype Face-to-face
480. Customer DevelopmentTesting Your Hypotheses Steve Blank Stanford - School of Engineering U.C. Berkeley - Haas School Of Business www.steveblank.com Twitter: sgblank
484. Customer Discovery CustomerDiscovery CustomerValidation Company Building CustomerCreation Stop selling, start listening Test your hypotheses Two are fundamental: problem and product concept
488. Value Prop 1 Product/MVP Customers Who/Problem Channels Physical/Virtual Value Prop 2 Market Type Revenue Streams Pricing Customer Relationships Get/Keep/Grow Partners Key Resources Customer Discovery Phase 1 - Hypotheses
489. Value Prop 1 Product/MVP Customers Who/Problem Channels Physical/Virtual Value Prop 2 Market Type Long-Term Vision/ Mkt Size Revenue Streams Pricing Customer Relationships Get/Keep/Grow Partners Key Resources Customer Discovery Value Proposition – Product/MVP Product Features/Benefits MVP
490. VALUE PROPOSITIONS what are you offering them? what is that getting done for them? do they care?
491. Testing the MVP Smoke testing with landing pages using AdWords In-product split-testing Prototypes (particularly for hardware) Removing features Continued customer discovery and validation Surveys Interviews
492. Testing the MVP (Web Example) Can you get customers to pay for a product that doesn’t yet exist (or barely does)? Do customers say they have a matching core problem? Landing page test for conversion What’s required to get customers to activate? (prizes, payment) Use customer problem to identify key word list plug into Google search traffic estimator - high traffic means there is problem awareness Drive traffic to site using Google search and see how deep into a registration process customers are willing to go through
493. Testing the MVP (Non-Web) Can you get customers to pay for a product that doesn’t yet exist (or barely does)? Interview customers to make sure they have a matching core problem Set up web site landing page to test for conversion Set up a Lighthouse Customer Program where potential customers pay to get early access to product prototypes
494. Customers Who/Problem Value Prop 1 Product/MVP Channels Physical/Virtual Value Prop 2 Market Type Revenue Streams Pricing Customer Relationships Get/Keep/Grow Partners Key Resources Customer Discovery Customer Segments
495. CUSTOMER SEGMENTS which customers and users are you serving? which jobs do they really want to get done?
496. Who’s The Customer? Consumer End Users, Corporate Customers Pay Multiple Consumers Etc.
497. Market/Opportunity Analysis How Big is It?: Market/Opportunity Analysis Identify a Customer and Market Need Size the Market Competitors Growth Potential
498.
499. How large is the market be (in $’s) if they all bought?
517. Market Size: Summary Market Size Questions: How big can this market be? How much of it can we get? Market growth rate Market structure (Mature or in flux?) Most important: Talk to Customers and Sales Channel Next important: Market size by competitive approximation Wall Street analyst reports are great And : Market research firms Like Forester, Gartner
518. Corporate? Consumer? Business to Business (B to B) Use or buy inside a company Business to Consumer (B to C) Use or buy for themselves Business to Business to Consumer (B to B to C) Sell a business to get to a consumer Other Multi-sided Markets with multiple customers
519. What do they want you to do?Corporate Increase revenue? Decrease costs? Get them new customers? Keep up with or pass competitors? How important is it?
520. What do they want you to do?Consumers Does it entertain them? Does it connect them with others? Does it make their lives easier? Does it satisfy a basic need? How important is it? Can they afford it?
521. Market Type & Ignoring Customers Existing Market? Resegmenting an Existing Market? niche or low cost New Market? When do I ignore customer feedback?
522. Who’s the Customer in a Company? User? Influencer? Recommender? Decision Maker? Economic Buyer? Saboteur? Archetypes for each?
526. How Do Corporate Customers Interact to Buy? Organization Chart Influence Map Sales Road Map
527. Consumer Customer Interactions Do they buy it by themselves? Do they need approval of others? Do they use it alone or with others?
528. Pass/Fail Signals & Experiments How do you test interest? Where do you test interest? What kind of experiments can you run? How many do you test?
529. How Do They Hear About You? Demand Creation Network effect Sales
530. Channels Physical/Virtual Value Prop 1 Product/MVP Customers Who/Problem Value Prop 2 Market Type Revenue Streams Pricing Customer Relationships Get/Keep/Grow Partners Key Resources Customer Discovery Channels
531. Multiple Customer Segments Each has its own Value Proposition Each has its own Revenue Stream One segment cannot exist without the other Which one do you start with?
532. CHANNELS how does each customer segment want to be reached? through which interaction points?
533. OEM System Integrators Direct Sales Force Our Customers Value-Added Resellers (VAR’s) Our Company Dealers Distributors Retail/Mass Merchants Web/Online OEM System Integrators Direct Sales Force Value-Added Reseller Dealers Distributors Retailers/Mass Merchants