Food on the Table case study at #sllconf by Manuel Rosso

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Presented by Manuel Rosso at http://sllconf.com on April 23, 2010 in SF

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  • Randy’s comment – find problem then solve it
  • CODE TO SCALE
  • Dave – get them to hate you
  • Food on the Table case study at #sllconf by Manuel Rosso

    1. Is Customer Development Marketing?Startup Lessons Learned ConferenceApril 23, 2010<br />
    2. ?<br />
    3. Know your customer<br />Hit the pavement<br />Know the difference between what people say and do<br />Master Quant and Qual<br />Live your brand<br />
    4. Historically ~ 80% of Food Products launched fail<br />Cost of launching a Grocery product nationally: $2M to $15M<br />Source: Marketing, Witchcraft or Science, Linton Matysiak & Wilkes1997<br />
    5. Before WWII most “Package Goods” and food products where locally developed with tight relationships between customers and manufacturers.<br />After the war communication and distribution infrastructure maturation led to an explosion in nationally marketed and distributed products.<br />Without the same level of customer knowledge the quality of product decisions plummeted. <br />
    6. Market Research as the Answer<br />For the First time:<br />But…In reality:<br />Understanding of customer needs improved dramatically.<br />Reliable customer profiles could be built at a scalable national level.<br />Prototype testing became a viable, scalable option.<br />Product organizations could make product decisions on facts, not opinions.<br />It takes 4 to 12 weeks to get results to one iteration.<br />A simple study can run in the $10s of thousands of dollars<br />Can be easily manipulated to tell you what you want to hear<br />Discipline is a victim to the rigidity of statistical significance<br />only large organizations with extensive resources consistently and effectively use it.<br />
    7. Does it work?<br />Works Great if you can afford it.<br />
    8. Enter the Web<br />But…In reality:<br />It takes 4 to 12 weeks to get results to one iteration.<br />A simple study can run in the $10s of thousands of dollars<br />Can be easily manipulated to tell you what you want to hear<br />Discipline is a victim to the rigidity of statistical significance<br />Days<br />A few $ go along way<br />Difficult to ignore behavior on a live product<br />
    9. Customer Development is P&G style product development evolved to the cost structure and iteration cycles of a startup<br />
    10. Customer Discovery at FOTT<br />No defined hypothesis<br />WE LET IT EMMERGE<br />Over 150 direct customer conversations<br />20 Kitchen Table discussion groups<br />
    11. Customer Validation<br />What we did<br />Pulled one prospective user from Discovery<br />Interviewed her to learn how she solved the problem<br />Offered solutions to pain points – never talked about technology<br />Started defining product by adding one customer at a time<br />Only coded task that when they became too time consuming to do by hand.<br />What we learned<br />Maximum Viable Product<br />Full concierge service<br />Extensive customer interactions<br />Beyond anything technology can do<br />NOT COST EFFECTIVE<br />If you can’t get them to buy into the hand holding version, go back and iterate<br />Code should only remove bottlenecks (cost)<br />
    12. Customer AcquisitionLanding Page Iteration<br />
    13. Two Big Lessons from Driving Acquisition<br />Invest in traffic to drive learning<br />If it takes you a month to get to a statistically significant sample, you need more traffic<br />“Best Practices” don’t apply to all customer segments<br />Our target customer needs information before moving forward with registration<br />
    14. We know we are on the right track<br />From Mary:<br />“I logged on tonight assuming I could pull up the recipe for sea bass that I had shopped for on Monday. I can't find a way to get that recipe. Instead, you are asking me to rate the recipes I've cooked and then you leave me at a dead end.I'll be logging on to Epicurious to find a recipe that works with the ingredients I've bought. But this is frustrating.”<br />

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