The document discusses the importance of achieving product-market fit by intimately understanding customers, identifying real problems, and creating solutions customers will pay for. It emphasizes that the number one reason startups fail is because they make products no one wants. The fundamental principles for success are to have a product or service that addresses a real customer need and that people will pay for.

1. Achieve Product to Market Fit

6. pets.comwebvan.com cuecats.com
$830m $82m $185m

8. THE ENTREPRENEURIAL PROCESS: PERCEPTION VS REALITY
START SUCCESS!

9. START SUCCESS!
START SUCCESS!
THE ENTREPRENEURIAL PROCESS: PERCEPTION VS REALITY

10. 9 OUT OF 10 BUSINESSES FAIL

11. They make products
no one wants
fortune.com
THE NUMBER ONE REASON THEY FAIL….

12. 1. Intimately know your customer
2. Identify a real problem they are trying to solve
3. Create a solution they will pay for
4. Figure this out as quickly and cheaply as possible
FUNDAMENTAL PRINCIPLES OF MAKING SOMETHING PEOPLE WANT

13. Do you have a product or service that addresses a real
customer need AND that people will pay for?
“Product to Market Fit”
THE NUMBER ONE QUESTION YOU NEED TO ANSWER

16. 1. Intimately know your customer
2. Identify a real problem they are trying to solve
3. Create a solution they will pay for
4. Figure this out as quickly and cheaply as possible
x
x
x
?
FUNDAMENTAL PRINCIPLES OF MAKING SOMETHING PEOPLE WANT

17. VISION & MISSION
CUSTOMER
SEGMENTS
PROBLEM
DISTRIBUTION
CHANNELS
MARKETING
CHANNELS
REVENUE
MODELS
EVIDENCE OF FIT
MEASURES OF SUCCESS RESOURCE REQUIREMENTS
UNIQUE VALUE
PROPOSITION

18. VISION & MISSION
DISTRIBUTION
CHANNELS
MARKETING
CHANNELS
REVENUE
MODELS
MEASURES OF SUCCESS RESOURCE REQUIREMENTS
PRODUCT
DEVELOPMENT
CYCLE

19. Customer Segments

20. VISION & MISSION
PROBLEM UNIQUE VALUE
PROPOSITION
DISTRIBUTION
CHANNELS
MARKETING
CHANNELS
REVENUE
MODELS
EVIDENCE OF FIT
MEASURES OF SUCCESS RESOURCE REQUIREMENTS
CUSTOMER
SEGMENTS

21. CUSTOMER SEGMENT MATRIX
Customer Segment Size of
Market
Willingness
to Pay
Speed of
Access
Total
Score
1 = 1,000
2 = 10,000
3 = 1,000,000
1 = no $ or no Pain
2 = $ or Pain
3 = $ and Pain
1 = Months
2 = Weeks
3 = Days
Rev. per
customer
1 = Low
2 = Med
3 = High

22. CUSTOMER SEGMENT MATRIX - PANTLESS POSTMAN
Customer Segment Size of
Market
Willingness
to Pay
Speed of
Access
Total
Score
1 = 1,000
2 = 10,000
3 = 1,000,000
1 = no $ or no Pain
2 = $ or Pain
3 = $ and Pain
1 = Months
2 = Weeks
3 = Days
Rev. per
customer
1 = Low
2 = Med
3 = High
Teenagers at home
Uni students
Young Professionals
FI/FO workers
3
3
2
1
1
2
2
3
2
2
3
1
6
24
24
9
1
2
2
3
Wives of lazy men 2 3 3 2 36

23. CUSTOMER SEGMENT MATRIX - APPT/EVENT BOOKING APP
Customer Segment Size of
Market
Willingness
to Pay
Speed of
Access
Total
Score
1 = 1,000
2 = 10,000
3 = 1,000,000
1 = no $ or no Pain
2 = $ or Pain
3 = $ and Pain
1 = Months
2 = Weeks
3 = Days
Rev. per
customer
1 = Low
2 = Med
3 = High
2
1
2
3
3
1
2
1
3
1
2
2
54
1
16
12
3
1
2
2
General Practice Doctors
Local Sporting Clubs
Event Organisers
PAs

24. CUSTOMER SEGMENTS ACTIVITY
1. Identify 4 to 6 customer segments
2. Complete the matrix for each segment
3. Identify the best market to approach first

25. Developing Your Avatar

26. “WHENEVER YOU’RE MAKING A
BUSINESS DECISION, YOU’LL HAVE
YOUR AVATAR TO ASK.”
THE POWER OF THE AVATAR

27. HONE YOUR MARKETING MESSAGE:
= Massively increase your conversion rates
SAVE TIME & MONEY: CUT OUT THE ‘WRONG’ CUSTOMERS:
= Attract your BEST customers and do business with the people you choose
BETTER UNDERSTANDING OF WHERE TO DIRECT YOUR MARKETING EFFORTS:
= Place your marketing messages in the right place with the right message
THE POWER OF THE AVATAR
ABILITY TO REALLY PUT YOURSELF IN THEIR SHOES:
= Significantly increase your chance of making something they want

28. “My avatar is anyone who likes the topic X
and wants to learn more about it.”
POOR AVATAR DEFINITION

29. “My avatar is 25-35 years of age, works a full-time 9-5 job,
has a family with 2 kids and finds themselves frustrated
and feeling alone every day because they don’t know
where to find the knowledge that I’m going to provide
them about X.”
BETTER AVATAR DEFINITION

30. “My avatar is 32. Her name is Melissa, and she is a writer.
She’s been wanting to start a blog for months now, but she
doesn’t know where to start. She’s a good writer, but she
could really use some help on how to structure and format a
blog post – plus, she’s not really sure what exactly she wants
to write about most of the time. She is working part-time and
earning her graduate degree online, so she’s usually studying
up on how she can start her blog on the weekends. Melissa
lives with her boyfriend and they both want to travel more,
hate their jobs and don’t make enough money.”
GOOD AVATAR DEFINITION

31. Customer Avatar
Age:
Gender:
Marital Status:
#/Age of Children:
Location:
Quote:
Occupation:
Job Title:
Annual Income:
Level of Education:
Other:
Goals: Challenges:
Objections to the Sale:
Values: Paint Points:
Role in the Purchase Process:
Goals and Values Challenges and Pain Points
Objections and Role In
Purchase Process
Sources of Information
Books:
Magazines:
Blogs/Websites:
Conferences:
Gurus:
Other:

32. CUSTOMER AVATAR ACTIVITY
1. Select your top customer segment
2. Create an avatar for this segment
3. Give as much detail as possible
4. Identify areas that you need more info