customer growth factory: a better way to visualize lean startups and established businesses

Customer Growth Factory

Customer Discovery, Trac2on, and Scalability

Register at www.visionaryd.com to learn more about Customer Growth Hacking. Lean Startup Coach. Dr. Rod King. [email protected] & h;p://businessmodels.ning.com & h;p://twi;er.com/RodKuhnKing

Customer (Discovery; Segmenta2on;

Behaviors/Habits)

Growth (Strategic/Tac2cal Scaling; Performance Management)

Factory (Repeatable System for

Problem Finding & Solving; Innova2on; Improvement;

Revenue Genera2on)


Customer Growth Factory (CGF) has a goal of conducEng experiments to rapidly and inexpensively discover customer problems and types (segments); gain tracEon; exponenEally scale customer growth 1. Customer Factory

3. Growth Factory

2. Customer Growth (Discovery/ValidaDon) (TracDon)

(Scalability)

A Business Is

A Customer Growth Factory

A Customer Growth Factory is Manifested as

A Virtual Building (Website) And/Or

Physical Building


Customer Growth Storyboard

Using a Business Model Strip to Comprehensively Visualize a Customer Growth Factory

S: Supplier

C: Customer

Business Model Strip (System: Customer Growth Factory)

Processing (Stock)


Goal/Job To Get Done (JTGD)

Value: +/-‐ (Trade-‐off; Margin)

Delight: + (Revenue/Streams)

Pain: -‐ (Cost/Structure)

Node (Object)

S: Supplier

C: Customer

Processing (Stock)









Node (Object)

S: Supplier

C: Customer




Product (MVP)/ Strategy/ Vision






Node (Object)

S: Supplier

C: Customer




Payment

Product (MVP)/ Strategy/ Vision






Node (Object)



A Customer Growth Factory (aka Business Model Engine, Business Model Strip, or

Customer Happiness Factory) Is

the Unit of Analysis, Design, and Performance Management

for Customer Growth Hacking

Like in a Business Model Engine, A Customer Growth Factory Can Be Visualized as a System That Consists of 3 Interconnected Engines: q  Customer Growth Engine (CGE)

q  Enterprise Engine (EE)

q  Value Engine (VE)

5 Business Model Strips For Visualizing


Business Model Engine (BME) No Stack-‐Business Model Strip Stack-‐Business Model Strip

1D: Point (“Lean” System)

2D: Circle Gradated (Without Label)

Gradated (With Label)

Stack of Blocks (VerEcal)

S: Supplier (Input)

C

S

C

S

C

S

C: Customer (Output)

C

S

Customer Growth Engine (CGE)

Enterprise Engine (EE)

Value Engine (VE)

Customer Growth Engine (CGE)

Enterprise Engine (EE)

Value Engine (VE)

(Processing/

Stock)

Value Delivery

Value Crea2on

Value Capture/ Share

Business Model Engine (BME)

Zooming in (Block diagram) Zooming out (Line diagram)


Customer Growth Hacking Is

A SystemaDc Process for Rapidly and Inexpensively Building


Customer Growth Hacking

Rapidly Document, Analyze, Prototype, and Design Business Model Engines for CUSTOMER GROWTH HACKING


Customer (Discovery; Segmenta2on;

Behaviors/Habits)

Growth (Strategic/Tac2cal Scaling; Performance Management)

Hacking (Problem Finding & Solving; Innova2on)


Customer Growth Hacking (CGH) involves an experiment to rapidly and inexpensively discover as well as solve Big Urgent Market Problems (BUMPs)

1. Customer Hacking

3. Growth Hacking

2. Customer Growth (Problem-‐SoluDon

Fit) (Product-‐Market

Fit)

(Business Model Fit & Scaling)

The 3 Hats of a Customer Growth Hacker


Marketer/

Ethnographer

Quant-‐Strategist/ Data Analyst

Product Developer/ Business Model

Innovator

Customer Growth Hacker (CGH): individual, team, or organizaEon that carries out experiments to rapidly and inexpensively discover as well as solve Big Urgent Market Problems (BUMPs) 1. Customer Hacking

3. Growth Hacking



Fit)



Customer Growth Hacker

The 3 Hats of a Customer Growth Hacker


Marketer/

Ethnographer

Quant-‐Strategist/ Data Analyst

Product Developer/ Business Model

Innovator

Customer Growth Hacker

(Metrics: “EAARRR”; Delight/Pain)

Customer Growth Hacker (CGH): individual, team, or organizaEon that carries out experiments to rapidly and inexpensively discover as well as solve Big Urgent Market Problems (BUMPs) 1. Customer Hacking

3. Growth Hacking



Fit)





Engagement (Experience)

AcEvaEon

Referral

Reward (Revenue)

E

A

A

R R

R

RetenEon

AcquisiEon



The Three Main Phases of Customer Growth Hacking 1.  Customer Hacking:

Problem-‐Solu2on Fit 2.  Customer Growth:

Product-‐Market Fit 3.  Growth Hacking:

Business Model Fit/Scaling

B.U.M.P. = Big Urgent Market Problem



AcEvaEon

Referral

Reward (Revenue)

E

A

A

R R

R

RetenEon

AcquisiEon



Experiment & Reflect






Think

Hypothesize

Observe



AcEvaEon

Referral

Reward (Revenue)

E

A

A

R R

R

RetenEon

AcquisiEon




O.T.H.E.R. Loop (DeclaraEve/ExperienEal) O: Observe different – Observe what no one else is observing T: Think different – Think what no one else is thinking H: Hypothesize different – Hypothesize what no one else is hypothesizing E: Experiment different – Experiment on what no one else is experimen2ng on R: Reflect different – Reflect on what no one else is reflec2ng on






Think

Hypothesize

Observe



AcEvaEon

Referral

Reward (Revenue)

E

A

A

R R

R

RetenEon

AcquisiEon




q  Build (MVP)

q  Measure q  Learn







Think

Hypothesize

Observe



AcEvaEon

Referral

Reward (Revenue)

E

A

A

R R

R

RetenEon

AcquisiEon




q  Build (MVP)








Think (Causes)

Hypothesize (Fitness Plan)

Observe (Job To Get Done/Problem)



AcEvaEon

Referral

Reward (Revenue)

E

A

A

R R

R

RetenEon

AcquisiEon


q  Build (MVP)







S: Supplier

C: Customer

Product (Min. Viable Product) Strategy (Business Model Engine)

Vision (Winning Aspira2on)

Think (Causes)






AcEvaEon

Referral

Reward (Revenue)


E

A

A

R R

R

RetenEon

AcquisiEon

Product

Strategy

Vision

MVP = Minimum Viable Product

Magne2c Value Proposi2on Business Model Engine (Pivots)

Leap of Faith (Winning Aspira2on)

Why?

What?

How?









q  Build (MVP)


Think (Causes)



customer growth factory: a better way to visualize lean startups and established businesses

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