Lean LaunchpadCustomers / Users / Payers

Aaron EdenCreated by Steve Blank

Weekly Topics

» 5/12 – What to Expect» 5/19 – First Pitches» 5/26 – Experiment Day» 6/2 –Value Propositions» 6/9 – Customers, Users, Payers» 6/16 – Distribution Channels (Justin)» 6/23 – Customer Relationships (Andrew)» 6/30 – Revenue Models» 7/7 – Partners» 7/14 – Key Resources & Costs» 7/21 – Lessons Learned Presentations

Agenda

» Team Presentations» Customer Segments» Mentoring

Presentations

» How many customers did you talk to?» What were your value proposition hypotheses?» What do customers think about your value

proposition hypotheses?» Post updates in the Google group (lessons

learned, canvas changes)

WionTV

Appstore Analytics

Verb Club

City Recess

Forward Intelligence

CUSTOMER SEGMENTS

images by JAM

which customers and users are you serving? which jobs do they really want to get done?

CUSTOMER SEGMENTS

images by JAM

which customers and users are you serving? which jobs do they really want to get done?

Corporate? Consumer?

» Business to Business (B to B)˃ Use or buy inside a company

» Business to Consumer (B to C)˃ Use or buy for themselves

» Business to Business to Consumer (B to B to C)˃ Sell a business to get to a consumer˃ Other Multi-sided Markets with multiple customers

Customer Types

» Saboteurs » Intermediaries (OEM’s and resellers)

Market Type & Ignoring Customers

» Clone Market?» Existing Market? » Resegmenting an Existing Market?

˃ niche or low cost

» New Market?

» When do I ignore customer feedback?

General Heuristics

» You need to talk to more customers than you ever thought possible – 100’s physically, 1000’s on the web

» “I left a message” or “I sent an email” doesn’t count – it’s confusing motion with action

» Do NOT start at the top. You only get one meeting. You’ll almost certainly look like an idiot˃ First figure out the order of battle

Business to Business (B to B)

Corporate Customers

What do they want you to do?

» Increase revenue?» Decrease costs?» Get them new customers?» Keep up with or pass competitors?» How important is it?» Problem or a Need?

Customer Problem

Customer Problem

Customer Problem

Customer Problem

Customer Problem

Who’s the Customer in a Company?

» User?» Influencer?» Recommender?» Decision Maker?» Economic Buyer?» Saboteur?» Archetypes for each?

How Do They Interact to Buy?

» Organization Chart» Influence Map» Sales Road Map

Pass/Fail Signals & Experiments

» How do you test interest?» Where do you test interest?» What kind of experiments can you run?» How many do you test?

How Do They Hear About You?

» Demand Creation» Network effect» Sales

If It’s a Multi-sided Market Diagram It!!

MammOpticsHospital purchasing decision tree

MammOpticsPrivate practice purchasing decision tree

Business to Consumer (B to C)

ConsumerCustomers

What do they want you to do?

» Does it entertain them?» Does it connect them with others?» Does it make their lives easier?» Does it satisfy a basic need?» How important is it?» Can they afford it?

Archetypes

Consumer Customers

» Do they buy it by themselves?» Do they need approval of others?» Do they use it alone or with others?

How Do They Decide to Buy?

» Demand Creation» Viral?» SEO/SEM» Network effect?» AARRR (Dave McClure)

Pass/Fail Signals & Experiments

» How do you test interest?» Where do you test interest?» What kind of experiments can you run?» How many do you test?

The Consumer Sales Channel

» A product that’s bits can use the web» But getting a physical consumer product into retail

distribution is hard» Is Wal-Mart a customer?» More next week

Business to Business to Consumer (B to B to C)

Multi-Sided Markets

Who’s The Customer?

» Consumer End Users, Corporate Customers Pay» Multiple Consumers» Etc.

Multiple Customer Segments

» Each has its own Value Proposition» Each has its own Revenue Stream» One segment cannot exist without the other» Which one do you start with?

Market Type

Definitions: Four Types of Markets

» Clone Market˃ Copy of a U.S. business model

» Existing Market˃ Faster/Better = High end

» Resegmented Market˃ Niche = marketing/branding driven˃ Cheaper = low end

» New Market˃ Cheaper/good enough, creates a new class of product/customer˃ Innovative/never existed before

Clone Market

Existing Market Resegmented Market

New Market

Market Type determines: Rate of customer adoption

Sales and Marketing strategies Cash requirements

Market TypeExisting Resegmented New

Customers Known Possibly Known Unknown

Customer Needs

Performance Better fit Transformational improvement

Competitors Many Many if wrong, few if right

None

Risk Lack of branding, sales and distribution ecosystem

Market and product re-definition

Evangelism and education cycle

Examples Google Southwest Groupon

Market Type - Existing

» Incumbents exist, customers can name the mkt» Customers want/need better performance» Usually technology driven

» Positioning driven by product and how much value customers place on its features

» Risks:˃ Incumbents will defend their turf˃ Network effects of incumbent˃ Continuing innovation

Market Type – Resementing Existing

» Low cost provider (Southwest)» Unique niche via positioning (Whole Foods)

» What factors can:˃ you eliminate that your industry has long competed on?˃ Be reduced well below the industry’s standard?˃ should be raised well above the industry’s standard?˃ be created that the industry has never offered? (blue ocean)

Market Type – New

» Customers don’t exist today» How will they find out about you?» How will they become aware of their need?» How do you know the market size is compelling?

» Which factors should be created that the industry has never offered? (blue ocean)

Homework

» Talk to 10-15 customers face-to-face» What were your hypotheses about users and customers? Did you learn

anything different? » Did anything change about Value Proposition? » What do customers say their problems are? How do they solve this

problem(s) today? Does your value proposition solve it? How?» What was it about your product that made customers interested? excited?» If B-B, who’s: decision maker, size of budget, what are they spending it on

today, how will this buying decision be made?» Update Google Group

Read» Business Model Generation, pages 127-133» Startup Owners Manual, pages 227-256, 332-342