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Test your assumptions for effective customer discovery
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It is written in a conversational tone, doesn't take itself too seriously, and avoids extraneous fluff. Deemed a "must-read" by Steve Blank and Eric Ries, inside you will find detailed customer development and lean startup concept definitions, a step-by-step approach to best practices, a business model analysis guide, case studies, rich graphics, as well as worksheets and exercises. No matter the stage of your business, you will return often to this guide to learn how to build a product people want;"get out of the building;" foster strong customer relationships; test business model risk; reach out to early adopters; conduct startup marketing; create a customer funnel based on buyers' process; and prepare your startup to scale up.
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[ PDF ] Ebook The Entrepreneur's Guide to Customer Development A chea…
Condition: Brand New. Here are seven clusters of lessons I have summarised from the book; each chapter makes for an informative read with useful interviews, tables and worksheets. Understand your passion — not just what you like, but what is it that motivates you to put work and energy into it.
Decide what kind of core focus you would like to have: a particular segment eg. The key to success is focusing on effectively solving a real pain point or opening up a new opportunity for the customer.
Rockstart Cast #1
Startups should use market segmentation to identify the opportunity matrix. The authors provide a useful template here: rows of different kinds of persona customer personalities , and columns for depth of pain, budget, channel for easy reach, key influencers, ease of minimum viable product, size of market and overall value. Channels can include media, or organisations and networks eg.
Customer emotional states can be classified on a spectrum, correlated with business activity: aware targeted by channel ; intrigued, trusting brought into the funnel ; convinced yields revenue ; hopeful, satisfied minimum viable product ; and passionate key for growth engine. Each stage has a set of customer actions, metrics and company action points to respond to the customers and move them forward to the next stage starting off as hypotheses to be tested.
These states feed into the business cycle, which can be of various configurations: acquisition, activation, retention, revenue, referral; or suspect, lead, prospect, customer, reference. This helped gather valuable customer insights and also build a potential revenue pipeline. Lean entrepreneurs should use three primary methods to test validity of assumptions: customer interaction observation, user-centric design, social media, direct calls , running experiments and analysing data. For example, a team from Harvard, Stanford, MIT and IIT came up with the low-cost Embrace incubator using paraffin as a heat source only by traveling to India, interacting with rural mothers and finding out about the realities of electricity and fuel sources in rural India.
The basic premise of viability experiments is that the quicker you can determine a failed approach, the better.
- Diamonds in the Shadow;
- The Entrepreneur's Guide to Customer Development: A cheat sheet to The Four Steps to the Epiphany.
- Create a succinct value proposition: “Customer discovery” and the Customer Development Model.
- Connect with Us.
For example, music education startup Click for Lessons started off as a matchmaking site for music teachers and students, then pivoted and rebranded as TakeLessons which actively monitors teacher engagement and student performance, and takes over the billing function. Nick Swinmurn, founder of Zappos, tested his e-commerce hypothesis in the shoe market by actually buying and shipping shoes himself to all customers who came to his landing page, and only then automated the process. LitMotors first built a shell model of its proposed covered electric two-wheeler, and a video about using it for commutes; that generated enough interest to raise funds via Kickstarter, and only then did it begin actual production.