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Customer development

(and how it's going to save
you money)
robftz@gmail.com
Lean is about eliminating waste
The biggest waste is building a product
nobody wants to pay for
Very few startups have trouble building
their product
The most common problem is an
absence of customers
Customer development helps in 2 ways

1. If you're building the wrong thing, it helps you
   learn that sooner
2. Once you're building the correct thing, it helps you
   find customers before you launch
It's very simple

1. Talk to lots of customers
2. Deeply understand their needs
3. Write down what you learn
But it's not sales
It's about learning

There are lots of possible ways to learn what your
customers want
What you need to learn depends on the
stage of your company




                         Illustration from custdev.com
1. Discovery
Who is your customer?

How do they work?

How do they spend money?
What are their biggest problems?

How do they solve those problems?

How much are the problems worth?
Would your idea solve their problems?
2. Validation
But they might be lying to you!
Build a simple version of the product

Prove they were telling the truth by
getting them to buy it
3. Efficiency & scale
Figure out the sales channel

Start finding lots of customers
But companies who skip to this step
perform much worse

Create a solid foundation before
scaling
Tricky questions:

Money and ego
Understand how they spend money

Which budget does this type of purchase come
from?

What do you already buy that is similar?

Who would be most excited to buy this?
"Would you buy this product?"
"Would you buy this product?"

Avoid questions that make them feel guilty about
answering honestly.
You want find ways the business won't
work
Write down what you learn
Leanspark Sofia 2011 - Rob Fitzpatrick on Customer Development
Leanspark Sofia 2011 - Rob Fitzpatrick on Customer Development
Leanspark Sofia 2011 - Rob Fitzpatrick on Customer Development
Leanspark Sofia 2011 - Rob Fitzpatrick on Customer Development
Leanspark Sofia 2011 - Rob Fitzpatrick on Customer Development
You get interviews by asking and
wanting to learn
Not everyone is worth talking to
It's a casual conversation, not a sales
pitch
You're offering them the chance to be
an expert and learn what you're
working on
The founders and product owners
should do the interviews themselves
To summarize:

Who is your customer?

What is their big problem?

How do they spend money?

What else matters to them?
When you find something won't work,
update the business and keep learning.




                           Illustration from custdev.com
Thanks!

robftz@gmail.com

thestartuptoolkit.com

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Leanspark Sofia 2011 - Rob Fitzpatrick on Customer Development