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What is Customer development?
Find early customers and
confirm their intent to buy
before building everything
!
(without biasing them)
Paul Graham
Until you’ve launched, the
only 2 things you should be
doing are writing code
and talking to customers
...
Pets.com (and everyone)
“I wish I’d
known that
sooner!”
We can’t plan under
uncertainty.
We need a way to
search.
Talking to
people is a
great way to
learn if our
business will
work
But it’s
hard to do
right and
easy to
mess up
When we do
it wrong, we
get bad data
to convince
us we’re
right
And when
we believe
those false
positives,
we get in big
trouble
Part 1.
What does bad
data look like?
Types of bad data
1.Compliments
2.Fluff
3.Ideas
4.Trivia
Compliments
Most meetings end
in a compliment.
Is that a good sign?
Mr. Compliment
“Sounds great, I
love it!”
Compliments are
bad because they are
false positives
Two types of compliments
1.Sincere
2.“Polite”
Remember:
Even VCs are wrong most of
the time. If their opinion doesn’t
matter, nobody’s does! What
matters is whether customers
are going to use & buy it.
Mr. Compliment
“Looks great!
Keep me in the
loop.”
Ignore & deflect
compliments.
Then get back to
gathering real data.
Types of bad data
1.Compliments
2.Fluff
3.Ideas
4.Trivia
3 types of fluff
1.Generic claims
2.Future promises
3.Hypothetical maybes

Anything generic
is a lie.
Get to the truth by asking
for concrete examples.
Mr. Generic Fluff
“I usually...”
“We always...”
“I never...”
You
“Can you talk me
through the last time
that happened?”
Mr. Future Fluff
“I would...”
“We will...”
You
“How did you
make this decision
last time?”
Mr. Hypothetical Fluff
“I might...”
“We could...”
You
“Why can’t we
just get started
now?”
Types of bad data
1.Compliments
2.Fluff
3.Ideas
4.Trivia
Ideas
Everyone will have an
idea for your business
!
But you’ve already got too
many!
Shawn Carolan Menlo Ventures
Startups don’t
starve; they
drown.
Don’t take ideas at
face value.
Dig beneath them to
get to the motivations.
Mr. Feature Request
“You guys should
definitely have
feature X!”
You
“What would X
let you do?”
Mr. Feature Request
“When are you
going to let me
do task Y?”
You
“How are you
accomplishing
task Y today?”
Types of bad data
1.Compliments
2.Fluff
3.Ideas
4.Trivia
It’s trivial data if...
1.You could have googled for it
2.You could have surveyed for it
3.It’s demographics or percents
4.You can put the results in a
pie chart or graph
Bad Founder, proudly reporting trivia
“80% of people
say they have
this problem!”
You, getting to the motivations
“SO WHAT? Do they care
enough to fix it? What
else have they tried? Will
they buy our product?”
Trivia can’t give you
the “why”.
Just google for it and save
interview time for
questions that matter.
Tip:
Don’t choose customers who
you aren’t able to talk to in
person, or you’re guaranteed
to get 100% trivia.
Bad data in
review
Types of bad data
1.Compliments
2.Fluff
3.Ideas
4.Trivia
Fixing bad data
1.Deflect compliments
2.Anchor fluff
3.Dig beneath ideas
4.Google for trivia
Part 2.
How conversations
go wrong
When we
ask
people
about our
idea...
We feel
like we’re
being
scientific
But really,
we’re just
fishing for
kind
words
Conversations
go wrong by default.
It’s your job to
fix them.
How conversations go wrong
1.Being too formal
2.Exposing the ego
3.Being pitchy
Stuff you DON’T need
1.A formal meeting
2.Business cards
3.An interview script
4.To pay them
5.An hour or more
What you DO need
1.To know what
you want to learn
2.To ask about
their life



Tip:
Pick customers you have
easy access to. Then it’s
simple to have quick, casual
conversations without
wasting time.
You don’t need a
formal meeting to
learn from customers.
Just chat to them.
How conversations go wrong
1.Being too formal
2.Exposing the ego
3.Being pitchy
Bad Founder, fishing for compliments
“I had an awesome
idea for an app...
So do you like it?”
Bad Founder, exposing his ego
“So this is that secret
project I’ve been
working on...
What do you think?”
Why do they lie?
1.They don’t have a strong
opinion about it
2.They don’t want to discourage
you
3.They don’t want to see you cry

=
Mentioning your
idea
Exposing your
ego
If you mention your idea,
they’ll lie to you about it.
Talk about their life,
not your idea.
How conversations go wrong
1.Being too formal
2.Exposing the ego
3.Being pitchy
Remember the stages of a startup?
1.Discovery
2.Validation
3.Customer creation
4.Company building







Remember the stages of a startup?
1.Discovery ← You are here
2.Validation
3.Customer creation
4.Company building







Remember the stages of a startup?
1.Discovery
2.Validation ← or maybe here
3.Customer creation
4.Company building







Learning matters more than selling
1.Discovery ← Learning
2.Validation ← Learning
3.Customer creation
4.Company building







Real sales start way later
1.Discovery ← Learning
2.Validation ← Learning
3.Customer creation ← Selling
4.Company building ← Managing







Bad Founder, being pitchy
“No no, I don’t
think you GET it.”
Convincing folks
your idea is good
=
Forcing false
positives
Remember:
Unless they are holding a
checkbook, you have nothing
to gain by convincing them
your idea is great.
Bad Founder, being pitchy
“Yes, but it also
does THIS!”
You, recovering from starting to pitch
“Oops, sorry, I just
slipped into pitch
mode. I get excited.
You were saying...?”
If you’re talking,
you’re not learning.
Talk less, ask more.
Part 3.
Let’s review
People lie to us for
a bunch of reasons
People lie to us
1.We exposed our ego
and they’re being nice
2.We’re being pitchy and
they’re getting rid of us
Bad data is
dangerous and
must be fixed
Remember:
Anyone will say your
idea is great if you’re
annoying enough
about it.
Fix bad data
1.Deflect compliments
2.Anchor fluff
3.Dig beneath ideas
4.Google for trivia
Ask good questions
which pass
The Mom Test
❝
❞
Us
Do think it’s a
good idea?
❝
❞
Us
Do think it’s a
good idea?
❝
❞
Us
Would you buy a
product which
solved this problem?
❝
❞
Us
Would you buy a
product which
solved this problem?
❝
❞
Us
How do you
currently deal with
this problem?
❝
❞
Us
How do you
currently deal with
this problem?
❝
❞
Us
Talk me through
the last time you
had this problem
❝
❞
Us
Talk me through
the last time you
had this problem
❝
❞
Us
How much would
you pay for this?
❝
❞
Us
How much would
you pay for this?
❝
❞
Us
How much money
does this problem
cost you?
❝
❞
Us
How much money
does this problem
cost you?
The Mom Test for good questions
1.Talk about their life
instead of your idea
2.Ask about specifics in
the past
3.Talk less, listen more
Bonus.
Strategic heartbeat
Question
What’s most likely
to sink your
business?
Question
What has to be true
for the next big push
to be a huge success?
Question
What can you do this
week to resolve one
of those questions?
Customer development
transitions naturally to
sales/partners/funding.
!
The same skills apply.
Questions?

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