Market-Validation-Presentation-CSUF-Oct 2014

Talk to customers so YOU will listen and THEY will buy:

Market Discovery and Validation

Top 3 reasons why businesses and products fail:

1.  Out of touch with customers

2.  Lack of product differentiation that resonates with target customers

3.  Value propositions are not clear, concise and compelling

[email protected] 949-374-8674

Let’s discuss: •  Secondary research – the foundation

•  Customer interviews

–  Three levels and the information you need from each

–  Where to find potential prospects to interview

–  Ways to structure questions to get the answers you need

•  Assessing the results of your customer interviews


The ideal process


Secondary Research

•  Trends, challenges, market conditions, pain points •  Market segments and growth projections •  Competitive and substitute products

Gaps, opportunities,

target segments

•  Validate research and assumptions •  Determine urgency of problems/

demand for your solution •  Select best target market segments

Conceptual solutions

•  Market-driven •  Reduce risk •  Streamlined

development

The typical process


Product ideas & market assumptions

Attempt to sell - get poor results

Build

Then figure out what customers

really need

Research first •  Industry/market trends and

challenges, and operational impact

•  Current solutions

•  Sales and distribution channels

•  Government regulations

•  Competitive landscape

–  Market positioning

–  Products/features

–  Top customer segments

•  Market segments

–  Un- or under-served

–  Growth or decline

–  Decision makers (buyers vs. users vs. influencers)


Resources •  Search

–  Be open to discovery

–  Go beyond page one of results

•  Social media

•  Conferences and Trade Shows –  Listen to questions asked

•  Government agencies

•  Industry associations, bloggers, analysts –  Beware of spinning

•  Competitors


Next Step: Validate Assumptions and Identify Market Pain

No product or company discussion! This is not a pitch.


The objectives: •  Determine if pain points are urgent and pervasive

•  Accurately assess market interest and demand

•  Uncover the right target markets

•  Create a better business model

•  Deliver a market-driven solution

Important interviewee data to gather: ü  Consumer: Age, geo loca1on, income,

children, etc. ü  Business: Posi1on, company size, industry,

decision making authority, etc.


Interview methods and finding prospects

•  Use a combination of face-to-face and phone interviews, and online surveys

•  Survey platforms (e.g. Survey Monkey Audience)

•  Conferences and Trade Shows

•  Industry publication subscribers

•  Industry association members

•  Social media


Formulating interview questions:

•  Open ended and build on information

•  Probe:

–  Why? Tell me more? How would that work?

•  Don’t assume – ask and be open minded

•  Ask respondents to rank products, features, options – use force ranking when appropriate

•  How does the customer define the problem? How they are trying to solve the problem today?

•  Look for keywords and stories, not just statements


•  What are the top three trends impacting your industry and your company?

•  What’s the impact of these trends on your department? –  Time, revenue, profits, productivity, growth

objectives?

•  How are you solving these problems today?

•  What would the ideal solution look like? –  What would be different?

–  What would be the result?


Broad market assessment

ü  Validate assumptions ü  Understand market

pain – urgency and pervasiveness

ü  Evaluate existing solutions

•  Think of your current [technology platform or product]. Please walk me through the process (observe if possible)

–  What additional resources did you need?

–  What was most frustrating? Most useful?

•  What was the purchasing process and criteria?

•  Of the following features/services, which 5 are most important?

–  Drill into the “why”

•  What would prompt you to change solutions today?


Drill down

ü  Evaluate the gaps ü  Find consistent

responses among target segments

ü  Narrow potential product concepts and target segments

Compare these interview questions:

Limiting questions

•  Are you experiencing a lack of skilled talent when recruiting?

•  Do you attend industry conferences to learn about new products?

•  Are you satisfied with your current electronic medical records software?

Better questions

•  What are your company’s top three recruiting challenges?

•  What resources and channels do you use to research new products?

•  On a scale of 1 – 10, how satisfied are you with your EMR software?


If you build it, will they buy?

Presenting your product concept


•  Does this solve the problems we’ve discussed? How?

•  What’s your biggest concern with this solution? –  Beware of “hmmm, that’s

interesting”

•  If this were available today, would you purchase it? Why?

•  Is this solution worth $X? Why?

•  How would you describe this product/solution to your friends/colleagues?

ü  Confirm market segment pain and your solu1on fit

ü  Determine if/how much they will pay

ü  Establish posi1oning/UVP

Final Concepts


The results


Clear problem defini1on – urgent and pervasive

Market/industry segments to target

Problem-‐Solu1on & Product-‐Market

fit

Streamlined product

requirements

Compelling posi1oning/UVP

To learn more:

•  Four Steps to Epiphany, Stephen G. Blank

•  If You Build It, Will They Come? Three Steps to Test and Validate Any Market Opportunity, Rob Adams

•  Tuned In, Craig Stull, Phil Myers & David Meerman Scott


THANK YOU!

Eileen Licitra, Principal

Concentric Focus [email protected]

949-374-8674 LinkedIn.com/in/eileenlicitra


Presentations & Public Speaking

Market-Validation-Presentation-CSUF-Oct 2014