course 4 - intro customer development
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- Intro to Customer DevelopmentClass 4, UCN, Antofagasta, 2011 1
- OutlineSteve BlankHow it has been doneProduct / Customer DevelopmentCrossing the chasmCustomer DiscoveryCustomer ValidationBusiness Canvas
- Steve Blank
- How it was done High burn rate Swing for the fences Full management teams Assume customer is known Assume features are known Assumes growth is by execution
- Crossing the Chasm: Moore
- Concept Product Alpha/Beta Launch / /Seed Developm Test 1st Ship. Round ent Branding Positioning Expensive LaunchMarketing Create PR Event Materials Early Buzz Create Demand Build Hire Sales Organizati Sales Boss on Hire Staff Work Leads Close 1st Hire Biz Biz Dev Ship. Dev Boss Deals
- Problem: Expensive FailureBuilt and they will come syndromeExpenditure is loaded upfront (1st Shipping): Product development (p.e. design, software dev) Infrastructure (p.e. warehusing, server clusters) Sales & marketing departmentsHiring and executing according to plan now we need an API to integrate with...Hard to steer a cruise ship
- Fix?Focus on Develop Customers not only the ProductDesign for customersCustomers from day Onefinaly, match Product to Customer Development
- Pair Product to Customer DevelopmentConcept Product Alpha/Beta Launch / /Seed Developm Test 1st Ship Round ent
- Concept /Seed ProductDevelopm ent Solution KnowAlpha/Beta Test Problem Know Launch / 1st Ship
- SCRUM PracticesProduct Backlog Current prioritized list of work to be doneEffort Estimation iterative on Backlog itemsSprint 30 day / 15 days iterationSprint Planning Meeting decide goals for next sprint and how team will implementSprint Backlog Product Backlog items for sprintDaily Scrum meeting what doing, what will do, and any problemsSprint Review Meeting present results of sprin
- Split-test (A/B) experimentation Extremely rapid deployment Continuous deployment, if possible Deploy when core ready Just-in-time architecture and infrastructure Incremental investment for incremental benefit Five whys ask five times to solve problems Use defects to drive infrastructure investments E.g. Vendder had to CDN before coming to Chile.
- Customer Development KeysParallel process to Product DevelopmentMeasurable CheckpointsNot tied to FCS, but to customer milestonesNotion of Market Types to represent realityEmphasis is on learning & discovery before execution
- Search for a BizStop selling, start listening There are no facts inside your building, so get outsideTest your hypotheses Two are fundamental: problem and product conceptContinuos DiscoveryDone by Founders
- Customer Discovery Cicle
- Phase 0: Get buy-inConvince your-selfConvince othersGather a teamMission statement & values
- Phase 1: State HypotesesProductCustomer/ProblemDistribution/PricingDemand CreationMarket TypeCompetition
- Customer Discovery Cicle
- Product HypotesesFeaturesBenefitsProduct Delivery ScheduleIntellectual PropertyTotal Cost of OwnershipDependency Analysis
- Customer Discovery Cicle
- Customer/Problem HypotheseTypes of Customers/ArchetypesMagnitude of the problemVisionaries & Early EvangelistsA Day in the Life of a customerOrganizational impactROI JustificationProblem RecognitionMinimum Feature Set
- Early Evangelist
- Distribution / Pricing HypothesesDistribution ModelDistribution DiagramSales Cycle/RampChannel strategyPricing (ASP, LTV)Customer Organization MapDemand Creation
- Demand Creation HypothesesHow do competitors create demand?How will you? Dave McClures AARGH modelWho are influencers/recommendors?Key trade shows?Key trends?Start assembling advisory boar
- Exit for Customer Discovery What are your customers top problems? How much will they pay to solve them Does your product concept solve them? Do customers agree? How much will they pay? Draw a day-in-the-life of a customer before & after your product Draw the org chart of users & buyers
- CUSTOMER SEGMENTSwhich customers and users are you serving?which jobs do they really want to get done?
- VALUE PROPOSITIONSwhat are you offering them? what is that getting done for them? do they care?
- CHANNELShow does each customer segment want to be reached? through which interaction points?
- CUSTOMER RELATIONSHIPS what relationships are you establishing with eachsegment? personal? automated? acquisitive? retentive?
- REVENUE STREAMSwhat are customers really willing to pay for? how? are you generating transactional or recurring revenues?
- KEY RESOURCESwhich resources underpin your business model? which assets are essential?
- KEY ACTIVITIESwhich activities do you need to perform well in your business model? what is crucial? 36
- KEY PARTNERSwhich partners and suppliers leverage your model? who do you need to rely on?
- COST STRUCTUREwhat is the resulting cost structure?which key elements drive your costs?
- key value customer activities proposition relationships key customerpartners segments cost revenuestructure key streams resources channels 39 images by JAM
- 4REAS Cmo Qu Quin $
- 9 Guesses GuesGues Gues s Guess s s Gues s Gues Gues s s Gues Gues s s
- Turning Hypotheses to Facts Test Hypotheses: Product Market Type Competition
- TestHypotheses: Problem Customer User Payer
- TestHypotheses: Channel
- Test Hypotheses: Test Test Demand HypothesesTest Hypotheses: Creation :Hypotheses: Product Problem Channel
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