Engineering 245

The Lean LaunchPad

Session 3: Customers, Customers, Customers

Professors Steve Blank, Ann Miura-Ko, Jon Feiberhttp://e245.stanford.edu/

Web/Mobile Versus Physical

• Web/Mobile startups run faster

• Different process steps for web vs. physical

• Customer Relationships are radically different

Customer

Discovery

Customer

Validation

Pivot

Customer Discovery Phase 1 & 2

Customer Relationships

Customer Relationships Physical Products – Get Customers

Paid Channels

• PR• Demand Capture

– SEM– “Free” products (e.g. widgets)– Biz Dev– Affiliate Marketing

• Market Education– Webinars– Email marketing– Trade Shows– Analyst Reports– Direct Sales– TV / Radio

Demand Creatio

n

Getting Free Users

• SEO (without consultants)• Blogging / Sharable content• Social Media / Gaming

Mechanics• Communities• Proven viral coefficient > 1

NOTE: “Viral” isn’t a strategy, it’s a product feature you either have or you don’t

Demand Creation

Customer Relationships Physical Products – Get Customers

Customer Relationships Physical Products – Keep Customers

Customer Relationships Physical Products – Grow Customers

Customer Relationships Physical Products – Get/Keep/Grow

Customer Relationships Web/Mobile Products– Get Customers

• How many come through the first step?

• How much does that cost?

• What is the conversion between each level?

• How much in revenues can you get out of each acquired customer?

Customer Relationships Web/Mobile Products– Keep Customers

Customer Relationships Web/Mobile Products– Grow Customers

Customer Relationships Web/Mobile Products Get/Keep/Grow

Customer Relationships Physical & Web Mobile Are Different

Pivot Cycle Time Matters

• Speed of cycle minimizes cash needs• Minimum feature set speeds up cycle time• Near instantaneous customer feedback drives feature set

I Write a Blog www.steveblank.com

Thanks

www.steveblank.com