Customer Development for Entrepreneurs: What to Do When You’re Out of the Building

Mike Fishbein, www.mfishbein.com

About Me

Author, Customer Development for Entrepreneurs

Casual Corp

www.twitter.com/mfishbein

www.mfishbein.com

My Background

Growing up

How Lean and customer development has helped me

Why I created this

Key Topics

How to find customers and ask for interviews

How to get startup ideas

How to test startup ideas

Best and worst questions to ask

Key Topics

MVP, concierge and manual first approaches

Common customer development mistakes

Gaining insights to build awesome products

Case studies

What is Customer Development?

Mike Fishbein, www.mfishbein.com

What is Customer Development?

The practice of gaining customer insights through interviews and structured experiments to generate, test, and optimize startup ideas

Avoid spending time and money on stuff people don’t want

Build products that people love

How to Get Startup Ideas

Learn about:Customer pain pointsValue propositions that resonate

How to Test Startup Ideas

Is this something anyone wants?If yes confidence and convictionIf no what do they want?

or, quickly move on

How to Build Awesome Products

Gather customer insights to inform product decisions

Relentlessly serve customers

What it is Not

A silver bullet

Guarantor of success

Cheap or small

Easy

Other Benefits of Customer Dev

Customer acquisition

Pricing

Copywriting

Content marketing

Competitor research

Principles of Customer DevelopmentMike Fishbein, www.mfishbein.com

Principles of Customer Development

Abstract by a levelDon’t pitch at firstTry to prove yourself wrongTalk less, listen moreAsk open-ended questionsGet real validationOne on one and in person is best

Abstract by a Level

Don’t make any assumptions

Get them to tell you

Gain customer insights

Don’t Pitch (at first)

Gain customer insights

Form partnerships

Learn what they do want

Pitch when ready

Prove Yourself Wrong

Being wrong sucks.

But you know what sucks more?

Spending a bunch of time and money on something no one wants.

Less Talking More Listening

To learn, you must listen

Guide the conversation...then shut up

Open Ended Questions

Get customers talking

Learn what they do want

Until you want to learn specific things (like will they buy)

Get Real Validation

Words are not currency

Actions speak louder than words

How to Gather Insights

One on on and in person is bestSupplements:

SurveysFocus groupsResearchSecondary interviews

Four Phase Process

Mike Fishbein, www.mfishbein.com

The Four PhasesProblem Discovery

Product Discovery

Product Validation

Scale

1. Problem Discovery: Goals

Identify a problem worth solving

Find one or validate one

Abstract by a level

1. Problem Discovery: QuestionsWhat’s the hardest part about being a [demographic you’re serving]?What tasks take the most time during your day?What are some unmet needs you have?What product or service do you wish you had that doesn’t exist yet?What could be done to improve your experience as a [demographic you’re serving]?Do you find it hard to…Tell me about the last time you...

Other Problem Discovery TacticsListen for complaints

Be observant of your day

Look for hacked together solutions

Paid services

2. Product Discovery: Goals

Shape and optimize a solution to previously validated problem

Optimize your idea

2. Product Discovery: QuestionsDoes the product solve your problem?Would you ever use the product? Why or why not?What's appealing to you about the product?What deters you from the product?What would make the experience better?What do you dislike?If you could wave a magic wand and instantly have a solution to this problem, what would it look like?

3. Product Validation: Goals

Validate that customers view your product as a viable solution to their problem

3. Product Validation: Q’s & Tactics

Pre-sales“Would you be willing to start right away?”

MVP“I’ll do that for you…”

Pre-selling

The one dollar test

Cold call / vapor sale

Learn more

Landing page

What the heck is an MVP anyways?Minimum possible features that allow the product to be deployed and effectively solve the customer’s pain point

Further validation and deeper customer insight

Concierge MVP

Test your riskiest assumptions first

Examples

Marketplaces

Yipit

Data Analysis

Service Automation

4. Scale: Goals

Optimize your product

Turn “users” into “evangelists”

4. Scale: QuestionsWhat motivates you to continue using the product?What do you like most about the product?What do you dislike most about the product?How could your experience be improved?What’s the hardest part about using the product?What feature(s) do you wish the product had?What features do you wish were removed from the product?What would make you motivated to recommend the product to a friend or colleague?

How to Get Startup Ideas By Talking to PeopleMike Fishbein, www.mfishbein.com

Startup Ideas

CustomerMiniscule at first

Problem

ValueProduct

Why Start with Customer?

Time finding customers

Gain deeper insights

Enjoyment

How to Pick A Customer Segment

Relationships or access

Passion

Propensity to buy

Market size

Relationships / Access

Development

Acquisition

Connecting customer development and sales/marketing

Passion

A lot of time together

Enjoyment ---> effectiveness

Propensity to Buy

Budgets

Tech savvy

Incentive

Market Size

Goals

Niche product

How many potential customers?

Product Discovery

Proven models

Creative thinking

Automation

Problem Discovery QuestionsWhat are the top 3 challenges you face in your job?What are some unmet needs you have?What’s the hardest part about being a [demographic]?What’s the hardest part about doing [relevant activity]?What tasks take the most time during your day?What product or service do you wish you had that doesn’t exist yet?What could be done to improve your experience as a [demographic]?

Other Tactics for Generating Ideas

Scratch your own itch

Do what you know is working

Solve for basic needs

Listen and be observant

Scale

Do other people want this too?

Risk

Assumptions

Conclusion“Why do so many founders build things no one wants? Because

they begin by trying to think of startup ideas.” - Paul Graham

“By far the most common mistake startups make is to solve problems no one has.” - Paul Graham

How to Test Startup Ideas Before Building a ProductMike Fishbein, www.mfishbein.com

First Steps

Customer hypothesis

Validate problem

Validate product

Customer Hypothesis

Who would LOVE this product?

Specific, then iterate

Name one person

Validate Problem

Talk to peopleAbstract by a level

What are the top 3 challenges you face in your job?What’s the hardest part about being a [demographic]?What’s the hardest part about doing [relevant activity]?What tasks take the most time during your day?Tell me about the last time you….

Validate Solution What do you think of this idea? Does the product solve your problem?What would make it better?What do you like about this product or solution?What do you dislike?What would prevent you from using this product?Would you ever use the product? Why or why not?

Pre-sales

Actions speak louder than words

You will learn a lot

But...

“I’m already using x…”

“It’s not something I spend a lot of time on”

Or...

Validation!

Confidence and conviction

Partners and hires

Investors

Actual $$

How to Find Customers to InterviewMike Fishbein, www.mfishbein.com

Why

You might have the best new product idea in the world, but until you find customers, it’s not actually a business.

If you can’t find customers before you have a product, what will you do when you have a product?

WhoWho is most strongly affected by the problem you’re solving?

Who would absolutely LOVE this product/service?

Create a profile

Name someone specifically

How

Go where they go, online and offline

Most not scalable, sustainable, profitable

Test your riskiest assumption first

LinkedIn Groups

Roles, industries, interests, etc.

People you know “Hi [their name],

Hope all is well! I'm looking for feedback on a potential product to help with [problem or process]. Given your experience, it would be great to get your feedback.

I don't have a product to sell (yet)...I’m just trying to determine if it's a problem worth solving in the first place.

Could I buy you a coffee next week to ask you a few questions and get your feedback?

Thanks,

[your name]”

ReferralsYour network

People you’ve interviewed

“Do you know anyone else who might have this problem that you would feel comfortable introducing me to so I could conduct a similar interview?”

Find people on Facebook or Linkedin and asked shared connections

Cold Outreach

Get specificFind their contact information“Hi [their name],

I’m Mike [link to page with my bio]. I'm looking for feedback on a potential product to help with [problem or process]. I came across your LinkedIn profile and it looks like you have a lot of experience with [problem or process], so I was hoping to get your feedback.

I don't have a product to sell (yet)...I’m just trying to determine if it's a problem worth solving in the first place.

Could I ask you a few questions and get your feedback over a fifteen minute phone call?

Thanks,

[your name]”

Meetup.com

Go to eventsReach out to organizersPost on message board

Conferences and Events

Especially if enterprise

Craigslist

Respond to postsCreate posts

Twitter

Hashtags, phrases

Facebook

Search

Groups

Ads

Blog

Create relevant and valuable content

Can be sustainable customer acquisition

Can be your MVP

Offline Paper Handouts

Coffee shops, gyms, streets, etc

Kickstarter

Large user base

Validation and $

Hit the streets

Neighborhoods

Stores

Events

Quora

Reviews

Relevant questions

How to Ask for Interviews

Mike Fishbein, www.mfishbein.com

Frame the Conversation

Partners, not customersNothing to sellQuickDefine area or problemAsk for adviceYou won’t get a 100% response rate

Script 1“Hi [their name],

I'm looking for feedback on a potential product to help with [problem or process]. Given your experience, it would be great to get your feedback.

I don't have a product to sell (yet)...I’m just trying to determine if it's a problem worth solving in the first place.

Could I ask you a few questions over a 15 minute call?

Thanks,

[your name]”

Script 2“Hi [their name],

My name is [your name]. We’re doing research on a product to help people with [problem you’re solving or value you’re delivering].

We're currently in the development phase and we’re hoping you might provide some feedback so we can build the best product possible and potentially help you. I don’t have a product to sell you. I would just like to get your thoughts.

Are you available to talk on [date]?

Thanks in advance,

[your name]?”

What to Do Before, During and After InterviewsMike Fishbein, www.mfishbein.com

Before

Not a sale

Keep it casual

Qualify your customer

Qualify Your Customer

“Tell me about yourself.”“Tell me about your role.”“Who handles x?”“How much time do you spend on x?”“Do you have kids?”“Do you do x?”

During

Be observant

Take notes?

Record video or audio?

After

Clarify your takeaways

Ask if you can follow up

Ask for referrals

Thanks! :)

Takeaways“So based on the conversation, it sounds like x is really hard for you, but y is not”

“It sounds like x is very important to you, while y is not.”

Take notes if you didn’t during the interview

Follow Up “Can I keep you in the loop on how the product develops?”

“Can I follow up if I have more questions?”

“Would you like to know if/when the product goes live?”

Get contact info

Referrals

Get more interviewsSmall form of validation

“Do you know anyone else who might have this problem that you would feel comfortable introducing me to so I could conduct a similar interview?”

“Do you know anyone else who might benefit from this product/service? Would you feel comfortable introducing me so I can get feedback similar to our conversation?”

Case Studies

Mike Fishbein, www.mfishbein.com

Intro

SinglePlatform

AirBnB

Yipit

Failures?

Failures?

Avoiding wasted time and money on something no one wants is a success.

SinglePlatform

Problem DiscoveryAccess to customersProblem first

Product ValidationCustomers inform product decisionsPre-sales

AirBnB

Product ValidationFinding customers

Scale / Concierge MVP

Yipit

Concierge MVP

Conclusion

Mike Fishbein, www.mfishbein.com

Key Takeaways

Outcomes of customer developmentBest questionsGenerating startup ideasTesting startup ideasHow to find customers and ask for interviewsProduct validation exercises

Adios!

Questions?To learn more

Udemy (http://bit.ly/1bQW22W)

Amazon (http://amzn.to/1cusVFt)www.mfishbein.com

More Questions?www.twitter.com/mfishbein

Good luck validating!