SlideShare a Scribd company logo
How customers hold the 
secret to your success 
Rachel Andrew, MicroConf EU 2014
edgeofmyseat.com
PHP framework for larger sites 
• CMS framework that we licensed along with 
our development services to implement 
• license cost $4,800 
• average cost of a site build around $10,000
grabaperch.com
Perch business model 
• Downloadable self-hosted software 
• Customers buy a license per site 
• Recurring revenue because customers are 
typically agencies and build lots of sites 
• License includes support and free first party 
add-ons 
• At launch $55 per site, now $89 per site
Perch came from … 
• a need to have a tool that would make small 
jobs profitable 
• a drop-in CMS for tiny sites 
• started life as an internal tool but we quickly 
started thinking of it as a standalone product
We had no idea what we were 
doing.
The Flyjar Story 
https://www.flickr.com/photos/laserstars/640499324
Perch version 1 
• built over 4 weekends 
• launch infrastructure took another 4 weekends 
• entirely a side project 
• costs limited to lawyers fees, domain, a bit of 
stock illustration and UI design (we’re 
developers)
“Profitable” in 24 hours
Keeping the needs of our 
customers front and centre.
Lesson 1. 
The “missing features” at 
launch don’t matter to 
anyone but you. 
https://www.flickr.com/photos/lizadaly/2944362379
Solve a complete problem in as small 
a way as possible.
Sell your solution to that problem
Existing customers enjoy getting new 
features after they have paid - it 
feels like free stuff!
Launch as soon as you have a 
product that solves a real pain. Work 
with your customers to add features.
Lesson 2. 
Scratch your own itch but 
be aware that you are not 
your ideal customer. 
https://www.flickr.com/photos/9516941@N08/2286083797
Version one was the product that 
we wanted and needed.
Our first customers were our 
friends and peers - “people like us”. 
The second wave had different 
requirements.
Version two was the product that 
our real customers needed.
Lesson 3. 
The happy majority are 
often silent. 
https://www.flickr.com/photos/binaryape/3431773089
There are many terrible ways to 
configure PHP web hosting. We 
know about all of them.
The more people can do with your 
product, the more they want to do.
June to October 2014 
• 38% of people who bought a license during this 
time also raised a thread in the forum 
• of that number 16% have contacted us only 
once 
• not all of this is “support” some is people 
posting sites they have built/tutorials etc. 
• we have heard from 8.5% of our entire 
customer base since June
Your best customers may never 
speak to you.
Find out who they are and get in 
touch with them. Ask for feedback.
A survey can prompt customers to 
give you their feedback
http://blog.mailchimp.com/reducing-irrelevance/
When it feels as if “everyone” is 
asking for something. Is it really 
everyone, or a few noisy people?
Make sure that a noisy minority 
don’t cause you to make changes 
that will upset the happy majority.
Lesson 4. 
Your customers can show 
you how to sell your 
product. 
https://www.flickr.com/photos/shootingjaydred/6539831765
We love … 
• Storing structured data 
• Templates defining a schema 
• Speed and efficiency of the template engine
Our customers love … 
• not having to know PHP 
• that the CMS doesn’t mess with their markup 
• that the end client doesn’t need handholding to 
edit the site 
• that they can use any Bootstrap template or 
jQuery plugin
Great code is not a selling point
The things your customers tell you 
they love should be your headlines.
grabaperch.com/about
Lesson 5. 
We’re not looking for 
features, we’re solving their 
problems. 
https://www.flickr.com/photos/jeepersmedia/15016371116
“Can you add a setting for this?”
What problem are you trying to 
solve?
As the product owner you need to 
get from the specific to the general 
use case.
• “I want a select list of already uploaded 
images” 
• “I want to browse the images already 
uploaded” 
• “I want to find out if an image is used 
anywhere on the site and delete unused ones”
Collect use cases from support, 
from feature requests, from the 
way you see people use the 
product.
Lesson 6. 
Features never move the 
needle on sales. 
https://www.flickr.com/photos/brookenovak/1012870079
New features keep your existing 
customers happy and sticking with 
you as their needs are met.
Expecting new features to mean 
more sales is a mistake.
Lesson 7. 
You can learn a lot from the 
“misuse” of your features. 
https://www.flickr.com/photos/begnaud/243996426
That’s not a blog.
Why are they doing that?
http://blog.intercom.io/shareable-map/
Pave the cowpaths 
• See what users are already doing 
• Don’t penalize them for making that choice 
• Find ways to help them do the thing they want 
to do in a better way
Lesson 8. 
Great support can be your 
best feature and your most 
effective marketing. 
https://www.flickr.com/photos/lydiashiningbrightly/4436324664
Most of your competition spend their 
days looking forward to those rare 
moments when everything goes right. 
Imagine how much leverage you have 
if you spend your time maximizing 
those common moments 
when it doesn’t. 
Seth Godin
Help people to do things they 
couldn’t do before they started 
using your product.
Support is a feature you don’t 
spend time up front developing. You 
just have to commit to being great.
One customer well taken care of 
could be more valuable than $10,000 
worth of advertising. 
Jim Rohn
With self-hosted software support 
is often your first run experience
Lesson 9. 
The influencers are fickle. 
https://www.flickr.com/photos/-elleinad-/7075406127
The ideal Perch customer 
• is a freelancer or agency building lots of sites 
for clients 
• understands that time is money 
• prefers running a solid business over constantly 
learning new things 
• often does fixed price website builds
The “influencers” 
• are well-known in the web industry 
• can charge a premium for their work 
• can treat each project as a “special snowflake” 
• have time in higher budgets to try new things 
• have a need to learn new things in order to be 
able to talk about them in their influencer role
We don’t chase the influencers
Treat attention from influencers as 
a bonus when it comes, don’t worry 
too much when they move on.
Lesson 10. 
You are never done. 
https://www.flickr.com/photos/jayneandd/4450623309
We are so lucky.
We are so tired.
We swapped 10 or so clients per 
year, for 1000s of customers.
We are supporting our customers 
every day of every year and have 
been doing for over 5 years.
With no exit plan, we are never 
done. So we need to learn how to 
make this work well.
grabaperch.com/runway
We innovate by starting with the 
customer and working backwards. 
That becomes the touchstone for how 
we invent. 
Jeff Bezos
rachelandrew.co.uk/list
Thank you 
rachelandrew.co.uk 
grabaperch.com 
@rachelandrew 
http://rachelandrew.co.uk/presentations/customers

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How Customers Hold the Secret to Your Success

  • 1. How customers hold the secret to your success Rachel Andrew, MicroConf EU 2014
  • 3. PHP framework for larger sites • CMS framework that we licensed along with our development services to implement • license cost $4,800 • average cost of a site build around $10,000
  • 5. Perch business model • Downloadable self-hosted software • Customers buy a license per site • Recurring revenue because customers are typically agencies and build lots of sites • License includes support and free first party add-ons • At launch $55 per site, now $89 per site
  • 6. Perch came from … • a need to have a tool that would make small jobs profitable • a drop-in CMS for tiny sites • started life as an internal tool but we quickly started thinking of it as a standalone product
  • 7. We had no idea what we were doing.
  • 8. The Flyjar Story https://www.flickr.com/photos/laserstars/640499324
  • 9. Perch version 1 • built over 4 weekends • launch infrastructure took another 4 weekends • entirely a side project • costs limited to lawyers fees, domain, a bit of stock illustration and UI design (we’re developers)
  • 11. Keeping the needs of our customers front and centre.
  • 12. Lesson 1. The “missing features” at launch don’t matter to anyone but you. https://www.flickr.com/photos/lizadaly/2944362379
  • 13. Solve a complete problem in as small a way as possible.
  • 14. Sell your solution to that problem
  • 15. Existing customers enjoy getting new features after they have paid - it feels like free stuff!
  • 16. Launch as soon as you have a product that solves a real pain. Work with your customers to add features.
  • 17. Lesson 2. Scratch your own itch but be aware that you are not your ideal customer. https://www.flickr.com/photos/9516941@N08/2286083797
  • 18. Version one was the product that we wanted and needed.
  • 19. Our first customers were our friends and peers - “people like us”. The second wave had different requirements.
  • 20. Version two was the product that our real customers needed.
  • 21. Lesson 3. The happy majority are often silent. https://www.flickr.com/photos/binaryape/3431773089
  • 22. There are many terrible ways to configure PHP web hosting. We know about all of them.
  • 23. The more people can do with your product, the more they want to do.
  • 24. June to October 2014 • 38% of people who bought a license during this time also raised a thread in the forum • of that number 16% have contacted us only once • not all of this is “support” some is people posting sites they have built/tutorials etc. • we have heard from 8.5% of our entire customer base since June
  • 25. Your best customers may never speak to you.
  • 26. Find out who they are and get in touch with them. Ask for feedback.
  • 27. A survey can prompt customers to give you their feedback
  • 29. When it feels as if “everyone” is asking for something. Is it really everyone, or a few noisy people?
  • 30. Make sure that a noisy minority don’t cause you to make changes that will upset the happy majority.
  • 31. Lesson 4. Your customers can show you how to sell your product. https://www.flickr.com/photos/shootingjaydred/6539831765
  • 32. We love … • Storing structured data • Templates defining a schema • Speed and efficiency of the template engine
  • 33. Our customers love … • not having to know PHP • that the CMS doesn’t mess with their markup • that the end client doesn’t need handholding to edit the site • that they can use any Bootstrap template or jQuery plugin
  • 34. Great code is not a selling point
  • 35. The things your customers tell you they love should be your headlines.
  • 37. Lesson 5. We’re not looking for features, we’re solving their problems. https://www.flickr.com/photos/jeepersmedia/15016371116
  • 38. “Can you add a setting for this?”
  • 39. What problem are you trying to solve?
  • 40. As the product owner you need to get from the specific to the general use case.
  • 41. • “I want a select list of already uploaded images” • “I want to browse the images already uploaded” • “I want to find out if an image is used anywhere on the site and delete unused ones”
  • 42. Collect use cases from support, from feature requests, from the way you see people use the product.
  • 43. Lesson 6. Features never move the needle on sales. https://www.flickr.com/photos/brookenovak/1012870079
  • 44. New features keep your existing customers happy and sticking with you as their needs are met.
  • 45. Expecting new features to mean more sales is a mistake.
  • 46. Lesson 7. You can learn a lot from the “misuse” of your features. https://www.flickr.com/photos/begnaud/243996426
  • 47. That’s not a blog.
  • 48. Why are they doing that?
  • 50. Pave the cowpaths • See what users are already doing • Don’t penalize them for making that choice • Find ways to help them do the thing they want to do in a better way
  • 51. Lesson 8. Great support can be your best feature and your most effective marketing. https://www.flickr.com/photos/lydiashiningbrightly/4436324664
  • 52. Most of your competition spend their days looking forward to those rare moments when everything goes right. Imagine how much leverage you have if you spend your time maximizing those common moments when it doesn’t. Seth Godin
  • 53. Help people to do things they couldn’t do before they started using your product.
  • 54. Support is a feature you don’t spend time up front developing. You just have to commit to being great.
  • 55. One customer well taken care of could be more valuable than $10,000 worth of advertising. Jim Rohn
  • 56. With self-hosted software support is often your first run experience
  • 57. Lesson 9. The influencers are fickle. https://www.flickr.com/photos/-elleinad-/7075406127
  • 58. The ideal Perch customer • is a freelancer or agency building lots of sites for clients • understands that time is money • prefers running a solid business over constantly learning new things • often does fixed price website builds
  • 59. The “influencers” • are well-known in the web industry • can charge a premium for their work • can treat each project as a “special snowflake” • have time in higher budgets to try new things • have a need to learn new things in order to be able to talk about them in their influencer role
  • 60. We don’t chase the influencers
  • 61. Treat attention from influencers as a bonus when it comes, don’t worry too much when they move on.
  • 62. Lesson 10. You are never done. https://www.flickr.com/photos/jayneandd/4450623309
  • 63. We are so lucky.
  • 64. We are so tired.
  • 65. We swapped 10 or so clients per year, for 1000s of customers.
  • 66. We are supporting our customers every day of every year and have been doing for over 5 years.
  • 67. With no exit plan, we are never done. So we need to learn how to make this work well.
  • 69. We innovate by starting with the customer and working backwards. That becomes the touchstone for how we invent. Jeff Bezos
  • 71. Thank you rachelandrew.co.uk grabaperch.com @rachelandrew http://rachelandrew.co.uk/presentations/customers