Customer Validation for Startups

transcript

Customer Validationfor Startups

Monday, 10 February, 14

“At least 2/3 of our ideas are never going to work. The other 1/3 will take 3 or 4 iterations to get it right.”

~ Marty Cagan

Where?★ On the street

★ In a lineup

★ YellowPages

★ Online

★ Craigslist

★ Quora, Reddit, Twitter

Tip: If you are sending cold emails or doing cold calls, you will have double success rate on follow ups.

What?★ Validate and score the problem hypothesis/values and

wastes for the customer

★ Prove or disprove assumptions

★ Find out if they will pay for your service/product

Remember! Need scalable and repeatable customers. How? Real learning from

CustomerGroup of people with

a common name. Segment by vertical and roles/lifestyle.

ProblemProblem specific to

that person.

SolutionCannot define yet!

What can cause us to fail?

Explore

Concierge

Is this a good question?★ How time-consuming is this process?

The Right Way

★ Tell me about this process...

★ Interesting, why does it take x minutes?

★ Right, have you tried alternative methods? Why or why not?

Is this a good question?★ Do you like this idea?

The Right Way

★ How do you see this idea fitting in with your life?

★ What does it change in your life?

★ Would you tell your networks about it?

The Questions - Do’s★ Understand motives

★ Drilldown

★ Observe behavoir & feedback separately

★ Look for negative feedback

★ Ask for introductions

The Questions - Don’ts

★ Ask leading questions

★ Ask hypothetical questions

★Act like the project is your baby

Questionnaire Flow★ Under the customer’s story in their own words

★ Measure the importance of the problem (for each customer segment)

★ Pinpoint their pains & values and weigh the importance on each

★ What other solutions are they using?

★ Have them define their dream solution

★ If you are doing a demo of concept or pitch, do this last and no pitching! Just listening.

How to ask a question - listening vs selling

So Mr. Stevens, the premium CRM license is $5000, which can finally get you guys off that nightmarish paper system — I think you’re going to be able to save a ton of time. Thanks Rob, that sounds great. You guys are really delivering a lot of value for that price. Let me talk to my team and get back to you.

So Mr. Stevens, you guys are able to stay on top of a huge number of deals and I was wondering — how do you manage it all? Well Rob, we’ve tried a bunch of digital systems, but the training was a pain and it always seemed like more trouble than it was worth. We really only have about 5 active deals per partner and the post-it wall works fine for that volume.

The Startup Toolkit

Scoring InterviewsObservation ScoreDid the interviewee easily and definitively rank the problems you presented?

10, 5 or 0

Is the interviewee actively trying to solve the problem, or have they done so in the past?

8, 4 or 0

Was the interviewee engaged and focused throughout the interview?

4, 2 or 0

Did the interviewee refer others to you for interviews?

4, 2 or 0

Score >25 = GOOD Ben Yoskovitz, Lean Analytics

Feedback

“I wouldn't use it - but I know people who would”

Feedback

“I wouldn't use it - but I know people who would”

No one will use it

Feedback

“It’s a GREAT concept”

Feedback

“It’s a GREAT concept”

Not practical. No one will use it.

Feedback

“I could really use this if it did...”

Feedback

“I could really use this if it did...”

Core product isn’t solving a real problem. No one will use it

Feedback

“I would pay for this!”

Feedback

Great! Sign here ;)

Feedback

Great! Sign here ;) Need proof

Tools & TipsTOOLS

★ Validation Board ~ LeanStartupMachine

★ TurboStart (local startup tool for questionnaire data entry)

★ Usertesting.com (UX testing & feedback)

★ Don’t be shy - this is your business

★ Partner with people who are in touch with your audience

★ Don’t be afraid to pivot - just do it fast

★ Never stop validating

Beth Thouin l beth@thebrendans.com l facebook.com/thebrendans

Customer Validation for Startups

Marketing