Puc class4 cust_dev

With the Support of:

www.realstarters.com

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ICS 2014How to Build a Startup

Class 4

Hablemos con Clientes desde el Día 1Customer Development

http://www.realstarters.com/

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INDEXPARTE 1• Dónde estamos?• Customer Development

• Discovery• Validation• Cust. Creation• Company Creation

• Discovery• Entrevista del Problema

• Status Grupos

PARTE 2• Presentación #1-

Gonzalo Saieg• Ing. Civil Industrial, MSc• Emprendedor (2 años)• Tema: “ Oportunidades

para Emprendedores en el Diseño de Productos”

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0_DÓNDE ESTAMOSQué hemos visto hasta ahora?

• Distintos caminos en la vida• Emprender el camino arriesgado• Por qué ahora?• Algunos Paradigmas (Dinero, Idea, etc)

Clase 1- Qué es Emprender

• Fallar en nuestra sociedad• La importancia de fallar temprano y seguido• Que es un MVP• Qué es un PIVOT

Clase 2- Miedo a Fallar

• Disruptive technology• Diferencia entre idea y oportunidad• Cómo generar y filtrar ideas• Ejecución & Canvas

Clase 3- Generar y Compartir ideas

• Framework de trabajo• Qué es y qué no es?• 4 pasos ; Discovery & Validation• Entrevistar a clientes

Clase 4- Ejecución, CustDev

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1_CustDevOrigenQué NO es?Qué ES?

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ENTENDIENDO LA METODOLOGÍAAlgunos conceptos clave

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#1 Origen

Steve Blank’s experience: “distilled from things I got right, and things I screwed up,” as well as by his observations of the practices of successful companies.

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#2 Early Adopter/Evangelista

Source: The Entrepreneurs’s Guide to Customer Development, Brant Cooper & Patrick Vlaskovits , 2010 / Crossing the Chasm, Geoffrey A. Moore, 1991

EL ABISMO!!!

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Early Adopters

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#3 Segmentación

La práctica de dividir una porción grande del mercado en grupos identificables más

pequeños, que se caracterizan por compartir necesidades especificas y se referencian entre

ellos

Source: The Entrepreneurs’s Guide to Customer Development, Brant Cooper & Patrick Vlaskovits , 2010

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Segmentación

• Moore’s Crossing the Chasm -> elegir un segmento y establecer el “punto de desembarque en la playa”

• Incluso atacando múltiples segmentos al mismo tiempo es más barato hoy en día->

• Apegarse a un segmento maximiza los beneficios de la segmentación

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Case

Source: www.jawbone.com

Dif. Tipos de Mercado

Source: Steve Blank, www.steveblank.com

Mercado Existente Mercado Resegmentado Mercado Nuevo

RÁPIDO NICHO/MKT > RIESGO





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Product Development

Source: Steve Blank, Four Steps to the Epiphany

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AHORA SÍ, CustDev4 pasos, 2 que importan ahora

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• Un framework de 4 pasos que permite descubrir y validar que:

- Hemos identificado un mercado para nuestro producto- Hemos construido un producto o servicio con características que atacan necesidades reales - Tenemos los métodos correctos para adquirir y convertir leads en ventas- Hemos desarrollado los recursos necesarios para escalar el negocio

The Entrepreneurs’s Guide to Customer Development, Brant Cooper & Patrick Vlaskovits , 2010

CustDev

Source: Steve Blank, Four Steps to the Epiphany

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CustDev

Discovery El producto resuelve un problema para un grupo identificado de usuarios

Validation Podemos vender el producto a un mercado lo suficientemente atractivo

Cust. Creation El modelo es escalable a través de un plan de ventas y marketing

Com. Creation Los departamentos y procesos operacionales son creados para escalar el negocio

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CustDev (más aterrizado)

• Customer Development es acerca de cuestionar las suposiciones del “core” de nuestro modelo de negocios

• Cada bloque es una Hipótesis (método científico):– Observar y describir el fenómeno – Formular una hipótesis para explicar el fenómeno– Usar la hipótesis para predecir resultados de futuros

eventos– Medir la predicción basada en tests experimentales

CustDev

PIVOT

Discovery & Validation

• Do you have a problem worth Solving?– Hypothesis statements

• Business Model Canvas (input)

– Customer Interviews

• Preparation• Problem Interview• Solution Interview

• Have you built something customers want?– MVP Experimenting– Product/Market fit testing

Customer DiscoveryProblem / Solution Fit

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Discovery

• Meta: Comprobar que el producto resuelve un problema para un grupo identificado de usuarios

• Darnos cuenta si vale la pena solucionar este problema ($$)

Cust. Discovery tasks

Source: Ash Maurya, Running Lean, 2010

Task#1 Discovery- Multiple Canvases

(done)Objective:– Document what is in our mind (hypotheses)– Document customer`s feedback on the

hypotheses we have (pivoting if necessary)– Common language

OBJECTIVE

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B.M. Canvas

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Lean Canvas

Task#2 Discovery- Interviews Preparation

Objective:– Get ready to start interviewing real customers– Select first potential customers (in the market

segment you decided to attack)– First approaches to the customer channels– Decouple the problem from the solution and test

the problem before binding yourself to a solution

OBJECTIVE

• B2C: Find at least 10-15 prospects for a 2 weeks interview period (1 week)

• B2B: Find between 5-10 prospects for a 2 weeks interview period (1 week)

• These prospect customers will be used to test your business model canvas hypotheses

• Prioritize where to start (which customer in my segment is more interesting?)

TO-DO


• How to find prospects?1. 1 Degree contacts2. Ask for Intros3. Cold Calling, Emailing, LinkedIn4. Move around the Industry (e.g. Events, trade

shows, Meetups, etc)• Don’t be shy!

TIPS


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Intro email

Objective: – Know which problem is worth solving for the

customer (Talk to customers to understand their worldview before formulating a solution)

– We want to answer:• Customer Segments: Who has the pain? (Early

adopters)• Problem: What are you solving?

OBJECTIVE

Task#3 Discovery- Problem Interview

We will test top 3 hypothesis on:– Problem– Customer

Segments– Current problem

solutions

TO-DO


Task#3 Discovery -Problem Interview

TO-DO

Source: Ash Maurya, Running Lean, 2010

• Ask sufficient time (20-30 mins)• Use neutral location / prefer face to face• Do not record the customer• Use a script (flexible)• Document immediately

TIPS


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RESUMIENDO

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Resumiendo

Key ConceptsFramework, not a path for

success (less risk)

Prepare your customer’s interviews

First step, validate the problem

Ocupar CustDev en mi idea- Discovery

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STATUS DE EQUIPOS

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SPEEDATINGHow was last week?

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PEDIDOS SEMANA PASADA1. Postear en el blog el proceso de creación del

canvas y su resultado2. Crear la propuesta de valorMi producto X soluciona el problema Y para el cliente Z, haciendo W3. Cada proyecto debe tener un logo!

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PEDIDOS SEMANA #51. Encontrar prospectos para las entrevistas2. Entrar al nuevo blog común3. Postear resultados de la búsqueda de

prospectos en el blog4. Actualizar canvas (lean canvas)

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EXTRACANVAS STEPS AND EXAMPLES

1.Walk up

2.Touch screen

3.Takes four photos

4.Prints photo strip

5.Live streams the photos to an in-room projector and/or website

www.businessmodelgeneration.com

Cost structure

Revenue streams

Key resources

Key activities

Key partners

Value propositio

n

Costumer relationships

Costumer segments

Channels

Print Photostrips on-site

Sponsors for booth

Electronics

Manufacturers

Printer Supply

Companies

Live-Stream Photos

Booth Electronics

Simple Enclosure

Custom SW

Makes events

more fun

Branded Memories

Follow Events

Live

Deep Brand

Interaction

Social Media

Direct Marketing

Wedding Sites

Word of Mouth

Production Companies & Agencies

Transport by Sales People

Events

Venues

Production Companies

& Ad agencies

10% to close the

deal

10% to execute the deal

Fixed Printer Supply Cost

Rental

Up-Sell

Booth Sale

http://www.businessmodelgeneration.con/



Key partners

Sponsorship for discount on electronics in exchange for "powered by ... " advertising.

Relationships with Manufacturer for bulk orders

Relationship with Printer supplier for repeat orders

• Which partners and suppliers leverage your model?

• Who do you need to rely on?



Key activities What are the most important

tasks your company performs to create value?

The most important activity that we do is print the photostrips on site for

free to the consumer and immediately upload them to a projector or website

for live streaming / sharing of the event.


Key resources • Which resources underpin

your business model? • Which assets are essential?

• Booth Enclosure - Simple design that can be replicated and transported

• Booth Electronics - Camera, Flash, Touchscreen, computer, printer, printer supplies

• Custom Software




Value propositio

n What Benefits do you provide?Your value proposition should speak in

terms of the customer's emotions rather than your features. It will be at the heart of both your elevator pitch

and your sales material

The benefit is realized by two segments: 1. Owners & Event producers: Their events are more fun for their guests. 2. Brands: Branded memories on the photostrips, live streaming of photos to social media sites. The depth of brand interaction becomes evident as people make the photos their profile pictures and/or tag themselves.




Value propositio

n AnalogsWhat other companies and products

do we want to borrow ideas and behaviours from? How are they

related?

We want to borrow from digital billboards. The banner ad and the space on the screen that is visible during print times are media buying platforms. The latest trend in digital billboards is to use computer vision to identify characteristics of the person passing by and then to create a targeted advertisement to that person.




Value propositio

n AntilogsWhich companies are we actively

doing the opposite of?

Old school photobooths. We don't charge our guests. It's free for them, we charge the brand and the owners.




Costumer relationships

• What are you offering them? • What is it that is getting done for

them? • Do they care?

• We offer an experience to the user and great depth of interaction to the club / event owner (partners) and the brands (customers)

• Brands are reaching their targets, Event owners are producing a fun exp for their guests

• They care, because the users care, and the users care because it’s their photo




Channels How do customers find & buy our product?

How will you reach customers and harvest demand? Direct sales, TV ads,

blog & social media PR, SEO, retail presence?

Weddings: Through wedding sites (e.g., novio mingos), wedding production companies, social media, and word of mouth. Events: Through event production companies, direct sales marketing to club owners. Brand: Media buying agencies (e.g., OMD, Omnicon) or Ad agencies (Lowe Porta, Chiat Day)




Channels Sales or acquisition funnelDescribe your customer acquisition

funnel. What are the stages of intent a new customer goes through and how do you move them from curiosity to

purchase decision?

1. We want them to use the booth2. We rely heavily on the booth experience.3. We also use the website. We have photos from past events and a video of the booth in action.




Channels Who are our distribution and sales partners?

Who will we need to partner with to deliver our product through these

channels?

We function as a hub. Parts come to us from the suppliers and we distribute them to the clients.

The booths are directly transported by the sales people.




Costumer segments Who are we selling to?

Your customer segments (you might have several!) are the groups of

customers who share similar behaviors and buying habits. The more specific

you are, the easier tough product choices will be, since you'll know exactly who you're trying to help.

1. Events: Weddings, birthday parties, dances, etc.2. Venues: With this model we sell the booth directly.3. Production Companies (product is paid for by the brands as sponsors)




Costumer segments Earlyvangelists

Where within that segment will you find your very first customers, who will pay for a buggy product and still sing

its praises to their friends & colleagues?

Weddings & Clubs. Because we are first and are new. They will pay for the product because no one else can provide this service.




Costumer segments Purchase decision

Who is involved in making a purchase decision? Identify each person as a

user, influencer, recommender, economic buyer, or decision maker.

BudgetHow are funds allocated for this type

of purchase?

Current workflowDescribe the customer's daily life and work-flow without your product. What do they spend their time doing? Which

tools do they use?




Costumer segments Future workflow

Describe the customer's new work-flow once they've purchased and started

using your product. How important is it to their daily routine?

Other ProblemsIgnoring what you are planning to build

for a moment, what other problems does the customer have? What are the biggest pains in their job, where does their company or family lose the most

money or time?




Cost structure

What is the resulting cost structure?

Which key elements drive your costs?




Revenue streams

How do we make money?Subscriptions, service, add-ons,

advertising?

We start as a service company and the money we generate comes from event rentals

The future goal is to sell the booths to venues with an additional markup.




Revenue streams

Specific pricing plansWhat are the particular numbers

behind your revenue model?

Simple Rental: 450.000 CLP / boothFull Activation: 1.700.000 CLP/booth




Revenue streams

How much is one customer worth?What is the lifetime value per customer? For example, if you sell a watch for $500 and the

average customer spends $50 a year for 5 years on tune-ups, your LTV is $500+$50*5=$750

Since the product is currently being rented the value of each customer can be seen at the cost of each rental. Although, since we are a first mover there is implicit value in referrals. What we

have seen thus far is:

Wedding customer is worth 900.000 (assume 1 referral / wedding)

Event customer (e.g. Lolla) is worth 1.800.000 CLP (assume 3 referrals)




Revenue streams

Total cost of ownershipHow much does your customer need to budget to buy, own, and use your product? For example, you might sell a car for

$10,000, but your customer also needs to consider insurance, parking, gas, and so on.

Everything is included in the cost of the rental…




Revenue streams

Return on investment justificationHow much money/time/etc does will your product save a customer? Ideally, the return a customer

gets will be greater than their total cost of ownership.

We provide a platform from which venues can make a return on their investment through selling the advertising space on the photostrips. The value of this ad space is very high as brands are reaching a specific demographic at the event and through social media as the photos are uploaded to facebook and are

exposed to the social circles of those guests.



Education

Puc class4 cust_dev