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Customer Discovery (Concise)

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A concise version of steve blank's customer discovery presentation.

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Discovery = Hypothesis Testing  What are Hypothesis?  Where do Hypothesis come from?  Why Test them?  How do you test them? MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
Customer Discovery: Step 1 Customer Customer Customer Company Discovery Validation Creation Building Existing Market: 1 Month – 1 Year Resegmenting a Market: 6 Months – 3 Years New Market: 1 Year – 3 Years MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
Customer Discovery: Step 1 Customer Customer Customer Company Discovery Validation Creation Building Existing : 1-6 Months Resegmenting: 3-12 Months New: 1-2 Years MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
Customer Discovery: Step 1 Customer Customer Customer Company Discovery Validation Creation Building  Stop selling, start listening  Test your hypotheses  Two are fundamental: problem and product concept MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
Customer Discovery Customer Phase 3 Phase 4 Discovery Test Verify, Iterate & Product Expand Hypothesis To Validation Phase 1 Phase 2 Author Test Hypothesis Problem Hypothesis MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
Customer Discovery Hypotheses Product Customer Distribution Demand Market Type Competitive Hypothesis & Problem & Pricing Creation Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Test “Problem” Hypothesis Friendly “Problem” Customer Market First Contacts Presentation Understanding Knowledge Test “Product” Hypothesis First Reality “Product” Yet More Second Check Presentation Customer Reality Check Visits Verify Verify the Verify the Verify the Iterate or Product Problem Business Exit MBA295-F Customer Development in the High-Tech Enterprise Model Spring 2009
Customer Discovery Hypotheses Product Hypothesis Inside the Building Customer & Problem Hypothesis Distribution & Pricing Hypothesis Demand Creation Hypothesis Market Type Hypothesis Competitive Hypothesis Test “Problem” Friendly First Contacts Hypothesis “Problem” Presentation Customer Understanding Market Knowledge Outside the Building Test “Product” Hypothesis First Reality “Product” Yet More Second Check Presentation Customer Reality Check Verify Visits Verify the Verify the Verify the Iterate or Product Problem Business Exit MBA295-F Customer Development in the High-Tech Enterprise Model Spring 2009
Phase 1: Author Hypothesis Phase 3 Product Phase 4 Iterate &  One-time writing exercise Concept Expand Testing  All other time spent in front of customers Phase 1  Assumes you’re smart but Phase 2 Test Author guessing Problem Hypothesis Hypothesis MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
Hypothesis  Product  Customer/Problem  Distribution/Pricing  Demand Creation  Market Type  Competition Product Customer Distribution Demand Market Type Competitive Hypothesis & Problem & Pricing Creation Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
Product Hypotheses  Features  Benefits  Product Delivery Schedule  Intellectual Property  Total Cost of Ownership  Dependency Analysis MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
Customer/Problem Hypotheses  Types of Customers/Archetypes  Magnitude of the problem  Visionaries  A Day in the Life of a customer  Organizational impact  ROI Justification  Problem Recognition  Minimum Feature Set MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
Distribution/ Pricing Hypotheses  Distribution Model  Distribution Diagram  Sales Cycle/Ramp  Channel strategy  Pricing (ASP, LTV)  Customer Organization Map  Demand Creation MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
Demand Creation Hypotheses  How do competitors create demand?  How will you?  Dave McClure’s AARGH model  Who are influencers/recommendors?  Key trade shows?  Key trends?  Start assembling advisory board MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
Type of Market Hypotheses  Positioning and Differentiation  Existing Market  The product is the basis of competition  New Market  Creating the market is the basis of competition  Redefine Existing Market  Resegment the existing market is the basis of competition MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
Competition Hypotheses  Who is out there?  Why are they important?  How do customers use them today?  What don’t customers like about them? MBA295-F Customer Development in the High-Tech Enterprise Spring 2009

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Customer Discovery (Concise)

  • 1. Discovery = Hypothesis Testing  What are Hypothesis?  Where do Hypothesis come from?  Why Test them?  How do you test them? MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
  • 2. Customer Discovery: Step 1 Customer Customer Customer Company Discovery Validation Creation Building Existing Market: 1 Month – 1 Year Resegmenting a Market: 6 Months – 3 Years New Market: 1 Year – 3 Years MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
  • 3. Customer Discovery: Step 1 Customer Customer Customer Company Discovery Validation Creation Building Existing : 1-6 Months Resegmenting: 3-12 Months New: 1-2 Years MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
  • 4. Customer Discovery: Step 1 Customer Customer Customer Company Discovery Validation Creation Building  Stop selling, start listening  Test your hypotheses  Two are fundamental: problem and product concept MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
  • 5. Customer Discovery Customer Phase 3 Phase 4 Discovery Test Verify, Iterate & Product Expand Hypothesis To Validation Phase 1 Phase 2 Author Test Hypothesis Problem Hypothesis MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
  • 6. Customer Discovery Hypotheses Product Customer Distribution Demand Market Type Competitive Hypothesis & Problem & Pricing Creation Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis Test “Problem” Hypothesis Friendly “Problem” Customer Market First Contacts Presentation Understanding Knowledge Test “Product” Hypothesis First Reality “Product” Yet More Second Check Presentation Customer Reality Check Visits Verify Verify the Verify the Verify the Iterate or Product Problem Business Exit MBA295-F Customer Development in the High-Tech Enterprise Model Spring 2009
  • 7. Customer Discovery Hypotheses Product Hypothesis Inside the Building Customer & Problem Hypothesis Distribution & Pricing Hypothesis Demand Creation Hypothesis Market Type Hypothesis Competitive Hypothesis Test “Problem” Friendly First Contacts Hypothesis “Problem” Presentation Customer Understanding Market Knowledge Outside the Building Test “Product” Hypothesis First Reality “Product” Yet More Second Check Presentation Customer Reality Check Verify Visits Verify the Verify the Verify the Iterate or Product Problem Business Exit MBA295-F Customer Development in the High-Tech Enterprise Model Spring 2009
  • 8. Phase 1: Author Hypothesis Phase 3 Product Phase 4 Iterate &  One-time writing exercise Concept Expand Testing  All other time spent in front of customers Phase 1  Assumes you’re smart but Phase 2 Test Author guessing Problem Hypothesis Hypothesis MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
  • 9. Hypothesis  Product  Customer/Problem  Distribution/Pricing  Demand Creation  Market Type  Competition Product Customer Distribution Demand Market Type Competitive Hypothesis & Problem & Pricing Creation Hypothesis Hypothesis Hypothesis Hypothesis Hypothesis MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
  • 10. Product Hypotheses  Features  Benefits  Product Delivery Schedule  Intellectual Property  Total Cost of Ownership  Dependency Analysis MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
  • 11. Customer/Problem Hypotheses  Types of Customers/Archetypes  Magnitude of the problem  Visionaries  A Day in the Life of a customer  Organizational impact  ROI Justification  Problem Recognition  Minimum Feature Set MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
  • 12. Distribution/ Pricing Hypotheses  Distribution Model  Distribution Diagram  Sales Cycle/Ramp  Channel strategy  Pricing (ASP, LTV)  Customer Organization Map  Demand Creation MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
  • 13. Demand Creation Hypotheses  How do competitors create demand?  How will you?  Dave McClure’s AARGH model  Who are influencers/recommendors?  Key trade shows?  Key trends?  Start assembling advisory board MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
  • 14. Type of Market Hypotheses  Positioning and Differentiation  Existing Market  The product is the basis of competition  New Market  Creating the market is the basis of competition  Redefine Existing Market  Resegment the existing market is the basis of competition MBA295-F Customer Development in the High-Tech Enterprise Spring 2009
  • 15. Competition Hypotheses  Who is out there?  Why are they important?  How do customers use them today?  What don’t customers like about them? MBA295-F Customer Development in the High-Tech Enterprise Spring 2009