SETTING THE STAGE. Orientation to Customer Discovery. April 24, Webinar will begin at 1:00 pm ET
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1 SETTING THE STAGE Orientation to Customer Discovery April 24, 2018 Webinar will begin at 1:00 pm ET
2 PRESENTER Grant M. Warner, Ph.d. Director of Innovation, Graduate School Center for Advanced Manufacturing, PPT R&D Lead NSF I-Corps, HU Site PI & National Instructor
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5 THE TYPICAL PITCH Starts on Market Need World is desperately in need of <x> Stays on Market Need for ~30% of pitch Superficial Market Size slide If we could get <x>% of <huge market> Very little attention to competition
6 CUSTOMER PITCH INVESTOR PITCH Customer Pitch Persuade the customer that your value proposition solves a pain/produces a gain Customers cycle between desire and suspicion Pitch shows how a product of yours will solve a problem of theirs Investor Pitch Persuade the investor that your business model can make him/her rich Investors cycle between fear and greed Pitch shows how a profitable business can be built from your investment thesis
7 THE PURPOSE Pitch shows how a product of yours will solve a problem of theirs
8 Message Triangle
9 POLL: WHAT IS MOST COMMON WAY NEW STARTUPS FAIL? Spending Money Too Fast Building a Product Nobody Cares About Not Having the Right Team
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11 DO COMPANIES BUILD PRODUCT THAT NOBODY CARES ABOUT?
12 DO COMPANIES BUILD PRODUCT THAT NOBODY CARES ABOUT? OF COURSE they do!
13 DO COMPANIES BUILD PRODUCT THAT NOBODY CARES ABOUT? OF COURSE they do! Segway raised over $100MM USD in Used funds to focus on tech development. Because they invested in tech development and not understanding the customer, they thought everyone would want a Segway from mass-market consumers to postal carriers. They hired poorly because they did not understand the market need. Anticipating that everyone would want a Segway they hired logistics consultants to work on providing 10,000 Segways per week. At the end of 2 years they sold 6,000 TOTAL Segways. Without identifying a particular problem for a particular customer that they could solve, they were unable to market effectively.
14 COMMON PROBLEM: NOT UNDERSTANDING THE CUSTOMER #1, #2, #3, and #4 are all the result of building the wrong thing. Account for 79% of failures! Don t be a Segway
15 COMMON PROBLEM: NOT UNDERSTANDING THE CUSTOMER #1, #2, #3, and #4 are all the result of building the wrong thing. Account for 79% of failures! Don t be a Segway Segway believed in invention, more than innovation. Invention: developing the original idea Innovation: continuous process of adapting idea to actual customers
16 INVENTORS: TRY TO UNDERSTAND THE TECHNOLOGY
17 INNOVATORS: TRY TO UNDERSTAND THE PEOPLE
18 POLL: HOW WOULD YOU IDENTIFY? Inventor Innovator Other
19 QUESTIONS? Please use the chat box to enter your questions.
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22 POLL: THE FIRST STEP IN LAUNCHING A BUSINESS IS DEVELOPING THE BUSINESS PLAN True False
23 BIG QUESTION FOR INNOVATION What VALUE are you delivering to WHOM? Value Propositions and Customer Segments Product Market Fit
24 BIG QUESTION FOR INNOVATION What VALUE are you delivering to WHOM? Value Propositions and Customer Segments Product Market Fit First you SEARCH for the Product-Market fit!
25 LEAN STARTUP IT S A NEW PROCESS What are key features of your product/service that match customer problems/needs? What job do they want you to get done for them? What customer problems are you helping to solve? What customer needs are you satisfying? Who are your most important customers? What are their archetypes? Yes, we are replacing the Business Plan with the Business Model Canvas at this stage.
26 NOT JUST A NEW DOCUMENT IT S A NEW PROCESS Guess Guess Yes, we are replacing the Business Plan with the Business Model Canvas at this stage. Guess Guess Guess Guess BUT we are acknowledging that we DO NOT KNOW the answer. We are GUESSING. On a SEARCH for the answers. Answers are Outside of the Building.
27 NOT JUST A NEW DOCUMENT IT S A NEW PROCESS Yes, we are replacing the Business Plan with the Business Model Canvas at this stage. Guess Guess Guess Guess Guess Guess BUT we are acknowledging that we DO NOT KNOW the answer. We are GUESSING. On a SEARCH for the answers. Answers are Outside of the Building. Our initial guess may be wrong. So we may ITERATE and/or PIVOT.
28 EVIDENCE-BASED ENTREPRENEURSHIP
29 Customer Discovery using Scientific Method
30 Start Here
31 APPLY SCIENTIFIC METHOD TO CUSTOMER DISCOVERY Observe customer phenomena Step 1
32 VP Canvas Guide
33 VP Canvas Guide
34 APPLY SCIENTIFIC METHOD TO CUSTOMER DISCOVERY Observe customer phenomena Formulate hypothesis/guess Step 2
35 Step 2: State Your Guesses Gains What is your customer desperate to improve? Pains What are the biggest problems your customers are dealing with?
36 APPLY SCIENTIFIC METHOD TO CUSTOMER DISCOVERY Observe customer phenomena Formulate hypothesis/guess Test hypothesis talk to customers Step 3
37 GET OUT OF THE BUILDING!
38 Step 3: Test the Problem
39 Step 3: Test the Problem Identify customer problems and needs
40 Step 3: Test the Problem Identify customer problems and needs focus on customer pains, desired gains, and jobs.
41 APPLY SCIENTIFIC METHOD TO CUSTOMER DISCOVERY Observe customer phenomena Formulate hypothesis/guess Test hypothesis talk to customers Modify hypothesis/guess Step 4
42 APPLY SCIENTIFIC METHOD TO CUSTOMER DISCOVERY Observe customer phenomena Formulate hypothesis/guess Test hypothesis talk to customers Iterate or Pivot! Step 4
43 Step 4: Iterate and Pivot You will find that some of your initial guesses were incorrect. You will also find new guesses to make. These may involve pains/gains, but may also include who you think your customer is.
44 APPLY SCIENTIFIC METHOD TO CUSTOMER DISCOVERY Observe customer phenomena Formulate hypothesis/guess Step 5 Test hypothesis talk to customers Modify Hypothesis/guess
45 Step 5: Restate your Guesses Update your canvas with your new ideas found from interviews.
46 REPEAT AS NEEDED
47 APPLY SCIENTIFIC METHOD TO CUSTOMER DISCOVERY Observe customer phenomena Formulate hypothesis/guess Test hypothesis talk to customers Modify hypothesis/guess
48 APPLY SCIENTIFIC METHOD TO CUSTOMER DISCOVERY Observe customer phenomena Formulate hypothesis/guess Test hypothesis talk to customers Establish problemsolution fit Modify hypothesis/guess
49 CUSTOMER DISCOVERY: THE SEARCH PROCESS Hypothesize Guess Test Interviews Ask Assess & Analyze Listen Adjust Pivot As you go through the process your Canvas changes! Guess Again
50 QUESTIONS? Please use the chat box to enter your questions.
51 TURNING GUESSES INTO FACTS
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53 CUSTOMER DISCOVERY BEST PRACTICES
54 Source:
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59 What is the big take-away?
60 IT S NOT ABOUT YOUR
61 IT S NOT ABOUT YOUR Customer s context is the key
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63 Pain/Gain
64 Customer Ecosystem Customer Ecosystem
65 INVENTORS: TRY TO UNDERSTAND THE TECHNOLOGY
66 INNOVATORS: TRY TO UNDERSTAND THE PEOPLE
67 GET OUT OF THE BUILDING!
68 GET OUT OF THE BUILDING! Learn about the people - Ecosystem - Jobs to Be Done - Measures of Success
69 GET OUT OF THE BUILDING! Learn about the people - Ecosystem - Jobs to Be Done - Measures of Success But do it in a particular way Lean Innovation
70 Lean Innovation = Customer Discovery + Scientific Method
71 YOUR HW Complete 5 interviews prior to the Bootcamp Log your interviews
72 CUSTOMER DISCOVERY BEST PRACTICES Pre-plan the interview Conduct the interview Closing the interview
73 PRE-PLANNING Use Your Network for Warm Introductions Work your way up Cold Call Research Your Target Contact Play The Student Card Advise Them You Are Looking For Insights & Their Expertise Prepare a Script but do not use one
74 CONDUCTING THE INTERVIEW Remind them you are there seeking insight & help Start wide then narrow in Ask them to tell a story about the pain point Ask open-ended questions Drill Down ask why, repeatedly
75 CLOSING THE INTERVIEW What else should I have asked about? Who else should I talk to? Can I follow up with you later? Thank them again Record your interviews
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77 PRE-PLANNING THE INTERVIEW IDENTIFY THE CUSTOMER
78 Do you currently have a LinkedIn account? a. Yes b. No
79 PRE-PLANNING: IDENTIFYING CONTACTS Who is your key customer?
80 PRE-PLANNING ACTIVITY: USE YOUR NETWORK Who is your initial target customer? (early adopter, champion, etc.) List 5 characteristics of your customer (jobs, pain/gains, role, title, etc.) Use LinkedIn to Identify 5 people who meet those characteristics EXTRA CREDIT: Identify key tradeshows your customer attends
81 PRE-PLANNING: COLD-CALL SCRIPT Who you are? What are you looking for? Why are you contacting the person? How much time do you need?
82 SAMPLE: COLD CALL SCRIPT - WHO Hello. My name is Grant Warner, I am working on a National Science Foundation project exploring product shipment. I am reaching out to experts in this area to gain their insight into factors that drive product shipment decisions. I have been advised that you have deep expertise in this topic and hope that I could speak with you for 5 10 minutes.
83 SAMPLE: COLD CALL SCRIPT - WHAT Hello. My name is Grant Warner, I am working on a National Science Foundation project exploring product shipment. I am reaching out to experts in this area to gain their insight into factors that drive product shipment decisions. I have been advised that you have deep expertise in this topic and hope that I could speak with you for 5 10 minutes.
84 SAMPLE: COLD CALL SCRIPT - WHY Hello. My name is Grant Warner, I am working on a National Science Foundation project exploring product shipment. I am reaching out to experts in this area to gain their insight into factors that drive product shipment decisions. I have been advised that you have deep expertise in this topic and hope that I could speak with you for 5 10 minutes.
85 SAMPLE: COLD CALL SCRIPT - HOW Hello. My name is Grant Warner, I am working on a National Science Foundation project exploring product shipment. I am reaching out to experts in this area to gain their insight into factors that drive product shipment decisions. I have been advised that you have deep expertise in this topic and hope that I could speak with you for 5 10 minutes.
86 PRE-PLANNING ACTIVITY (10 MINS): DEVELOP COLD CALL SCRIPT Develop your cold call script, recall: Who you are? What are you looking for? Why are you contacting the person? How much time do you need?
87 CONDUCTING THE INTERVIEW JOBS TO BE DONE; METRICS FOR SUCCESS
88 CONDUCTING THE INTERVIEW Develop hypotheses BEFORE your interview Remind them you are there seeking insight & help Start wide then narrow in Ask them to tell a story about the pain point Ask open-ended questions Drill Down ask why, repeatedly DO NOT Talk about your product
89 TEAM A Hypothesis should be testable --- sniff test: Can someone say no to this TEAM B Hypothesis should be related to your capability tied to your canvas CS, VP, etc. RECALL PRIMARY OBJECTIVES: Understand pain/gain (VP), Understand Context (CS)
90 CONDUCTING INTERVIEWS: Develop hypotheses and questions before the meeting Interview one person at a time Have multiple team members present Ask open-ended questions Focus on behavior (evidence), not speculation Listen more, talk less Parrot back to confirm
91 GOOD QUESTION BAD QUESTION
92 WHAT IS THE BIGGEST ISSUE YOU FACE WHEN DEALING WITH PROCESS/ACTIVITY Y?
93 WHAT IS THE BIGGEST ISSUE YOU FACE WHEN DEALING WITH PROCESS/ACTIVITY Y?
94 WOULD YOU BUY A PRODUCT WHICH DID X?
95 WOULD YOU BUY A PRODUCT WHICH DID X?
96 WHAT ARE THE IMPLICATIONS OF NOT SOLVING THE PROBLEM?
97 WHAT ARE THE IMPLICATIONS OF NOT SOLVING THE PROBLEM?
98 HOW ARE YOU DEALING WITH THIS TODAY?
99 HOW ARE YOU DEALING WITH THIS TODAY?
100 WHAT SOLUTIONS HAVE YOU TRIED?
101 WHAT SOLUTIONS HAVE YOU TRIED?
102 WHAT WOULD YOUR DREAM PRODUCT DO?
103 WHAT WOULD YOUR DREAM PRODUCT DO?
104 WHAT WOULD YOUR DREAM PRODUCT DO?
105 WOULD YOU PAY X FOR A SOLUTION THAT DID Y?
106 WOULD YOU PAY X FOR A SOLUTION THAT DID Y?
107 WHERE DOES THE MONEY COME FROM TO DEAL WITH THIS ISSUE?
108 WHERE DOES THE MONEY COME FROM TO DEAL WITH THIS ISSUE?
109 WHAT DO YOU THINK ABOUT THIS SOLUTION?
110 WHAT DO YOU THINK ABOUT THIS SOLUTION?
111 WHAT DO YOU THINK ABOUT THIS SOLUTION?
112 WHAT DO YOU THINK ABOUT THIS SOLUTION?
113 CONDUCTING THE INTERVIEW ACTIVITY (10 MINS): DEVELOP HYPOTHESES AND FUNDAMENTAL QUESTIONS Thinking about your interview target: Develop at least 3 Hypotheses to test Create an interview script with questions to test each hypotheses
114 GOOD QUESTION BAD QUESTION
115 GOOD QUESTION VOLUNTEERS? Or VOLUNTOLDS? BAD QUESTION
116 CONDUCTING THE INTERVIEW ACTIVITY (14 MINS): ROLE PLAY Partner with another team (odd vs even; team in front of you, etc.): Share your key customer characteristics One team interviews other team Focus on questions, not answers Then Switch roles, the other team leads interview.
117 QUESTIONS? Please use the chat box to enter your questions.
118 CLOSING THE INTERVIEW
119 CLOSING THE INTERVIEW What else should I have asked about? Who else should I talk to? Can I follow up with you later? Thank them again LOG YOUR NOTES/INSIGHTS!!
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123 Clear insight. Heard a No. Identifed CS Provided details to support insight Testable Hypothesis. Opportunity for Segmenting based on needs Didn t register CS objection. Hard to imagine a Must Have VP without a Must Have CS.
124 QUESTIONS? Please use the chat box to enter your questions.
125 SUMMARY
126 CUSTOMER DISCOVERY DO S DO Know your objective before you go Seek easy targets then move up the chain Listen more, Talk less Talk to Strangers, Talk Face-to-Face, Go Deep Ask for referrals Log your results honestly in LPC Listen more, Talk less
127 CUSTOMER DISCOVERY DON TS DON T Sell, pitch, sell, pitch -you got it?- Talk About Your Technology Ask them what they Want take feature requests
128 IT S NOT ABOUT YOUR
129 CUSTOMER DISCOVERY Who is the customer? What is the problem? Problem-Solution Fit
130 QUESTIONS? Please use the chat box to enter your questions.
131 Contact Information Phone: x
132 Webinar Survey Please take a moment to help us become better: INSERT LINK TO EVALUATION SURVEY 132
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