The Lean LaunchPad Lecture 5: Customer Relationships

Download The Lean  LaunchPad Lecture 5: Customer Relationships

Post on 25-Feb-2016




1 download

Embed Size (px)


Steve Blank Jon Feiber Jon Burke /. The Lean LaunchPad Lecture 5: Customer Relationships. Source: http:// /. value proposition. key activities. customer relationships. key partners. customer segments. cost structure. revenue streams. key - PowerPoint PPT Presentation


Slide 1

The Lean LaunchPad

Lecture 5: Customer Relationships

Steve BlankJon FeiberJon Burke


Source: One person at a timeFocus groups are a group-think, distraction-filled mess. Avoid them and only talk to one person at a time. If desired, you can bring someone with you to take notes some UX designers like this approach. Personally, I tend to do one-on-one interviews because I think people loosen up and thus open up a bit more.2. Know your goals and questions ahead of timeHave your assumptions and thus learning goals prioritized ahead of time. Decide who you want to talk to (age, gender, location, profession/industry, affluence, etc), and target interviewees accordingly. Prep your basic flow and list of questions. You might veer off the plan to follow your nose, which is great, but go in prepared.3. Separate behavior and feedback in discussionDecide up front if your focus is going to be on learning a users behavior and mindset, and/or getting direct feedback or usability insights on a product or mockup. Do not mix the two in the discussion flow or things will get distorted.Put behavior and mindset first in your discussion flow. During this part, dont let the interviewee go too deep in terms of suggesting features (some people cant help it), but keep them focused on if they have a problem, how they think about the problem space, and if and how they have tried to solve it in past. Getting people to discuss their actual actions, not just opinions, is very useful.4. Get psyched to hear things you dont want to hearIf you dont do this, you might find yourself selling or convincing, or even hearing what you want to hear. Remember, the goal in this early stage is learning and validation/invalidation, not a sale.Unless, of course, you have set a sale or LOI as a goal. You might want to shoot for a commitment from the interviewee as a way to measure true demand. If so, keep it entirely out of the behavior/mindset portion of the discussion.5. Disarm politeness trainingPeople are trained not to call your baby ugly. You need to make them feel safe to do this. My approach was to explain that the worst thing that could happen to me was building something people didnt care about, so the best way they could help me was absolute, brutal honesty.6. Ask open ended questionsDo not ask too many yes/no questions. For example, minimize such questions as do you like Groupon? Instead ask what kinds of deals do you look for, if any? What motivates you to hunt for deals? How do you discover deals? Do you get frustrated with the deal sites out there?7. Listen, dont talkTry to shut up as much as possible, and try to keep your questions short and unbiased (i.e. dont embed the answer you want to hear into the question). Dont rush to fill the space when the customer pauses, because they might be thinking or have more to say.Make sure you are learning, not selling! (at least not until that part of the conversation, if relevant)8. Encourage but dont influenceIf you stay *too* quiet, some folks might start getting uncomfortable, thinking that they are boring you or you are judging them. You can keep things rolling with little motions of encouragement, such as nods, I see, interesting, etc. But do not say things that might steer or influence the interviewee.9. Follow your nose and drill downAnytime something tweaks your antenna, drill down with follow up questions. Dont be afraid to ask for clarifications and the why behind the what. You can even try drilling into multiple layers of why (see Five Whys), as long as the interviewee doesnt start getting annoyed.10. Parrot back or misrepresent to confirmFor important topics, try repeating back what the person said. You can occasionally get one of two interesting results through this. In the first, they correct you because youve misinterpreted what they said. In the second, by hearing their own thoughts, theyll actually realize that their true opinion is slightly different, and they will give you a second, more sophisticated answer.Another approach is to purposefully misrepresent what they just said when you parrot it back, and then see if they correct you. But use this technique sparingly, if at all.11. Ask for introductionsAt the end of every interview, see if you can get leads to another 1 to 3 people to talk to.12. Write up your notes as quickly as possibleThe details behind a conversation fade fast, so if you havent recorded the session, write up your notes and color commentary as soon as you can. I brain-dump into a shared Google Doc so the rest of the team can see it. (Note: I typically have not recorded sessions for fear of making interviewees more self-conscious or careful, but other entrepreneurs have said to me that, while it takes some rapport-building at the start, pretty soon people forget about a recorder.)Afterwards: Look for patterns and apply judgementCustomer development interviews will not give you statistically significant data, but they will give you insights based on patterns. They can be very tricky to interpret, because what people say is not always what they do.You need to use your judgement to read between the lines, to read body language, to try to understand context and agendas, and to filter out biases based on the types of people in your pool of interviewees. But it is exactly the ability to use human judgement based on human connections that make interviews so much more useful than surveys.Ultimately, you are better off moving fast and making decisions from credible patterns than dithering about in analysis paralysis.


images by JAMcustomer segmentskey partnerscost structurerevenue streamschannelscustomer relationshipskey activitieskey resourcesvalue proposition

CUSTOMER RELATIONSHIPSwhat relationships are you establishing with each segment? personal? automated? acquisitive? Retentive??We Call Customer Relationships Demand CreationGet, Keep and GrowHow will customers hear about your product?How much will it cost to acquire a customer using these strategies?How does market type impact my demand creation strategy?Customer Relationship DefinitionGetKeepGrow6Get Customers Who needs to hear about you?SuppliersChannelsGovernmentPartnersEnd UserInfluencer / RecommenderEconomic BuyerDecision MakerDemand Creation Getting Free UsersSearch Engine Optimization (SEO)Blogging / Sharable contentSocial Media / Gaming MechanicsCommunitiesProven viral coefficient >1

Demand Creation

Demand Creation Paying For UsersPublic RelationsDemand CaptureSEMFree products (e.g. widgets)Biz DevAffiliate MarketingMarket EducationWebinarsEmail marketingTrade ShowsAnalyst ReportsDirect SalesTV / Radio

Demand Creation

AwarenessConsiderationInterestPurchase Get Customers FunnelGet Customers Funnel - Physical

Demand Creation Feeds the Sales FunnelPayingCustomers$Demand CreationAcquisition

1112Keep Customers

AwarenessConsiderationInterestPurchase Earned and Paid Media

Get CustomersKeep CustomersCustomer check-in calls Customer satisfaction survey product updates Loyalty ProgramsKeep Customers Funnel - Physical14Grow Customers

AwarenessConsiderationInterestPurchase Earned and Paid Media

Get CustomersKeep CustomersCustomer check-in calls customer satisfaction survey product updates Loyalty ProgramsGrow CustomersReferralsUn-BundlingUp-SellCross-sellGrow Customers Funnel - Physical16Get Customers

Get Customers Funnel

AcquireActivateViral LoopGet Customers Funnel Web/Mobile

Earned and Paid Media

Get Customers FunnelPRSEOAdvertisingBlogs/WebsiteTradeshows

AcquireActivateViral MktgSEM/PPCAffiliate MktgViral LoopDemand Creation Feeds the Sales Funnel19Keep Customers

Contests,eventsBlogs, RSS, emailsProduct updates Affiliate ProgramsGet Customers

AcquireActivateViral LoopEarned and Paid Media

Loyalty ProgramsKeep CustomersKeep Customers Funnel - Web/Mobile21Grow Customers

Keep CustomersContests,eventsBlogs, RSS, emailsproduct updates Affiliate ProgramsGrow CustomersNext-SellReferralsUp-SellCross-sellLoyalty Programs

AcquireViral LoopEarned and Paid Media

ActivateGrow Customers Funnel - Web/Mobile

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?Demand Creation by Market TypeCreate, drive demand into your sales channelExistingResegmentedNewEducate the market about whats changedDrive demand into channelEducate the marketIdentify/drive early adopters into your sales channelsCloneCopy a businessMarket TypeExistingResegmentedNewCustomersKnownPossibly KnownUnknownCustomer NeedsPerformanceBetter fitTransformational improvementCompetitorsManyMany if wrong, few if rightNone RiskLack of branding, sales and distribution ecosystemMarket and product re-definitionEvangelism and education cycleExamplesGoogleSouthwestGrouponMarket Type determines:Rate of customer adoptionSales and Marketing strategiesCash requirementsHow does market type influence demand creation?Team Deliverable by Next Week - WebGet a working web site and analytics up and running Track where your visitors are coming from (marketing campaign, search engine, etc.) and how their behavior differs What were your hypotheses about your web site results?Actually engage in search engine marketing (SEM)Spend $20 as a team to test customer acquisition cost.Ask your users to take action, such as signing up for a newsletter.Use Google Analytics to measure the success of your campaigning.Change messaging on site during the block to get costs lower, team that gets the lowest delta costs wins.If you assume virality show viral propagation of your product and the improvement of your viral coefficient over several experimentsWhat is your assumed cu