Customer development


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Customer development

  1. 1. Customer Development 101 Zaky Founder Bukalapak
  2. 2. The Goal : Create Value!
  3. 3. Which Company Better? Type A Type B After 50-100 years Valuation : 100s B USD Profit Margin : 3% Asset : 100s B USD CAGR : 10% Headcount : 10ks After 5-10 years Valuation: 100s B USD Profit Margin : 20% Asset : 10s B USD CAGR : 30% Headcount : 1000s Type C After 2-3 years Revenue : small Profit Margin : zero Asset : small CAGR : 100% Headcount : 10s
  4. 4. Remember This? What’s wrong with them? They have money and almost everything!
  5. 5. Wrong Process Product Is this valid? True? Technology Wrong feature, technology? Hire Engineer Marketing Untargeted budget Hire Marketing Wrong communication Business Hire C-Level Management Management distrust, Demotivation? Design & define Technology Architecture Develop Create Marketing Launch Event Plan & Budget Direct Vision Public Communication Testing PR
  6. 6. The Problem… Invalid Product Concept •Bad customer acceptance •Bad customer experience Wrong feature or technology •Unclear requirements •Frustrated engineers High budget and untargeted marketing activity You don’t know if you are wrong until you are out of money •marketing vs engineers dillema •Office politics Management wrong direction • Create distrust • Demotivation
  7. 7. Many businesses fail because lack of customers not product development or marketing program failure
  8. 8. The alternative process Focus on customer and market since day one
  9. 9. Result… Valid Product Concept •Very good customer acceptance •Good customer experience •Getting Traction, WOM Right feature or technology Checkpoint •More user and clearer requirements •Happy engineers, tell to others talents Low budget and targeted marketing activity Always create success (KPI) checkpoint Focus on customer, not money Strong testing and discovery culture Prudent investment & budgeting Checkpoint •Happy marketers •Only guiding the brand, no frustating sales target Management right and strong direction Checkpoint Checkpoint •Trust – good PR •High motivated leaders -> team READY TO GROW MORE!
  10. 10. Illustration…
  11. 11. Marketing should be pull first PUSH - A little effort - Huge money - Salt the sea effect, always need to be push - Huge team, hard to manage PULL - High effort at the first time - Small money - Snowball effect, you don’t need effort when the ball is rolling - Small team, but sharp, focus
  12. 12. Discovery : out of building! • Meet a lot of customers or any people, get feedbacks from them
  13. 13. Discovery : Build MVP (Minimum Viable Product) • MVP : Get as many as feedbacks from customer or people • Avoid building things no body wants
  14. 14. our early product
  15. 15. Bukalapak Case Classified Transaction-base Bike Facebook Seller Hobbyst Still stick with FB Uncontrolled Experience Serious Seller Better experience
  16. 16. HijUp Case Offer Media Placement in Magazine Rejected by designers Because of obsolete Not in their market Offer Media Placement in Website Rejected by designers Because they need fast Movement of their product Offer Ecommerce service This is what they want! :D - Simple scheme - They need a web - Huge demand
  17. 17. Customer Discovery Checklist • You’ve identified a problem a customer want to solved • Your product solves the customer’s problem • You believe you have viable and profitable business model • You feel you have learned enough
  18. 18. Validation : Build repeatable model • Some business fail because of just trend or hype, not repeatable & sustainable model Build something that still exist in next tens of years
  19. 19. Validation : Find Positioning How to stand out in the middle of crowd…
  20. 20. How Nintendo did it
  21. 21. Bukalapak Case Classified - Simple Marketplace platform Pure Ecommerce - COD - Automatic - Controlled - Manual - OK for pro sellers experience - Not OK for pro sellers - Secure transaction - Big resource
  22. 22. Validation : Find Business Model
  23. 23. Did you know? • STARBUCKS is not in the coffee business • NIKE is not in the shoes business • GARUDA INDONESIA is not in the airline business • SEVEN ELEVEN is not in the retail business
  24. 24. Creation : Build Competitive Edge • Move as fast as possible • Combine “complex factors” : build multi competitive advantage
  25. 25. Network Effect • Some example of companies build by network effects – Facebook – Ebay – Paypal – Telkomsel – Google – Microsoft Windows
  26. 26. Scale Marketing
  27. 27. Thank You @achmadzaky