Author: Savvy

Poor customer development is the single biggest reason products fail. Jakob Marov argues that customer development is crucial, especially in the Saas B2B space.

Customer development process. Everybody talks about it. Everybody.

Yet surprisingly, not that many people actually walk the walk.

I understand it – the process is freakishly gruelling. I hated it, for example: why would anyone half sane try her best to dismiss her shiny new idea. To find that nobody, not even her mom, cares about it.

It’s against human nature to seek negative feedback. That’s why so few people do it. We rather just rush into building our dream product. It’s sexier.

And it’s probably also the single biggest reason why most new products fail. Now, after having done it a couple of times, I would argue that customer development is crucial, especially in the SaaS B2B space. And not just to learn whether your idea makes sense.

No, the potential learnings go way beyond that. Here are my four biggest benefits of a well thought-through customer development process:

  •  Get initial customers: Fast track your way to the first 10 customers.
  • Meet potential advisors: Get to know influencers and opinion leaders that know your industry and could eventually help you as advisors.
  • Connect with future employees: Meet potential hires that work or have worked in a similar industry.
  • Build a network of super fans: People that can help you spread your content marketing and help with customer and hiring referrals.

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We live by our To Do list. A simple tool that is often not used successfully. Here’s Five simple to-do list steps that will increase your productivity while decreasing your negative mind chatter. It’s a win/win.

As an entrepreneur, how can you be productive and ensure that you are focusing on the right areas?

Every entrepreneur is a self-starter; it tends to come with the territory. Being an entrepreneur also means that you don’t necessarily have a daily playbook to follow. Many entrepreneurs are breaking new ground and learning through trial and error. It can be daunting, and even a bit scary, to determine where to focus your energy on any given day.

Should you have your team spend the day creating marketing copy for that new product, or reaching out to customers to get feedback on an existing product? It can feel as though there is never enough time to meet all the demands of the business.

One tool many entrepreneurs use to get organized and improve focus is to create a To Do list. This can be a very helpful tool. Unfortunately, in my opinion, about 85% of the population is using the To Do list in a completely ineffective manner. Here’s why: most people are using their To Do list as a measure for self-worth…and this is a huge mistake.

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What correlates the most to success — team, product, or market? Or, more bluntly, what causes success? And, for those of us who are students of startup failure — what’s most dangerous: a bad team, a weak product, or a poor market? Marc Andreessen reveals the ONLY thing that matters in the best article we’ve ever read on product/market fit.

This post is all about the only thing that matters for a new startup.

But first, some theory:

If you look at a broad cross-section of startups — say, 30 or 40 or more; enough to screen out the pure flukes and look for patterns — two obvious facts will jump out at you.

First obvious fact: there is an incredibly wide divergence of success — some of those startups are insanely successful, some highly successful, many somewhat successful, and quite a few of course outright fail.

Second obvious fact: there is an incredibly wide divergence of caliber and quality for the three core elements of each startup — team, product, and market.

At any given startup, the team will range from outstanding to remarkably flawed; the product will range from a masterpiece of engineering to barely functional; and the market will range from booming to comatose.

And so you start to wonder — what correlates the most to success — team, product, or market? Or, more bluntly, what causes success? And, for those of us who are students of startup failure — what’s most dangerous: a bad team, a weak product, or a poor market?

Let’s start by defining terms.

The caliber of a startup team can be defined as the suitability of the CEO, senior staff, engineers, and other key staff relative to the opportunity in front of them.

You look at a startup and ask, will this team be able to optimally execute against their opportunity? I focus on effectiveness as opposed to experience, since the history of the tech industry is full of highly successful startups that were staffed primarily by people who had never “done it before”.

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The most important part of the market validation is the questions that you ask and how you ask them. Tips on understanding the emotions of your target market.

Overview and Objective

Market validation is a series of interviews of people in your target market. These interviews are used to test a product concept against a potential target market.

A market validation should always be done before introducing a product. Ideally, market validation should start much earlier in the process. A better understanding of the target market will help build a better, more focused product. A market validation will take a minimum of four weeks, more likely take six to eight, depending on the number of interviews and the number of people performing the interviews.

Pick one objective for your market validation. Either verify the target market, or verify the positioning and value statements. Trying to do both of these in a single market validation will create too many variables and weaken the value of the market validation. Write down your objective and make sure everyone involved agrees on the objective before proceeding.

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Social media marketing has a lot to offer for B2B companies. In fact, according to Think With Google, 81% of millennials have a say in purchasing decisions. Here’s how your B2B brand can get on board.

Social media is not just for B2C anymore. B2B companies tend to focus exclusively on targeting the highest-level executives because of the misconception that those are the main influencers in the purchasing decision.

Because of this reason, most B2B tech companies will not attempt to dip their toes in the social media waters, and those who sort of believe in social media will limit their power to LinkedIn exclusively. However, the reality is that social media marketing has a lot to offer for B2B companies. In fact, according to Think With Google, 81% of millennials have a say in purchasing decisions. So B2B brands better get on board.

Today, we don’t want to focus only on social media strategies for B2B; there are a lot of helpful resources addressing this already.

Social channels are a great tool to generate awareness through preference, and this is something that large B2B industries have started to realize. According to the 2016 B2B Technology Content Marketing report, from Content Marketing Institute, 96% of technology marketers use social media content as their main content marketing tactic.

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Although Customer Development can give us tremendous insight into market problems, it takes a lot of time – time that’s wasted if we do it incorrectly. Worse yet, poorly worded questions can cause us to reach wrong conclusions about what people want.

The best questions don’t require customers to speculate about their behavior. Kevin Dewalt shares real examples of his bad questions and mistakes and offers some better alternatives.

If you’re starting Customer Development you’re getting ready to talk to a lot of potential customers. You started with an an idea, wrote down your key assumptions, and started flipping through contacts to see who you can interview.

Awesome! You’re off to a great start. Talking face-to-face with customers brings us insight we can’t get from surveys and clicks.

Unfortunately, conducting face-to-face customer development interviews is a skill that takes practice. I’ve been doing it for 5 years and I’m still learning. So many times I’ve asked the wrong questions and later realized I was wasting time or – worse yet – coming to incorrect conclusions and building the wrong products.

“Learn Nothing” Questions

I call “Learn Nothing” questions those that don’t result in any learning, just wasted time.

“What do you think of my idea?”

I LOVE talking about startup ideas. To quote my friend Patrick Smith , “talking about startups is entertainment like sports”. Fun, yes. Validated learning? No. What do you think of my startup idea? is useless because if my idea is great people will like it. If it sucks, surely some people will still like it.

“If you could wave a magic wand…”

I know Steve Blank calls this the “IPO question”. I call it the “sit back and watch people ramble about things I have no chance of building” question. I’ve asked this question at the end of meetings and – after some funny looks – watched somebody ramble. It just hasn’t worked for me.

Too Broad Questions“Can you tell me about your problems with medical bills?”

I asked this question a few times before realizing that asking people to talk about problems just results in venting and no learning. This is particularly true with complex, personal, emotionally charged problems like those in health care. “Well there was this one time….and then…but what really got me mad…”

“False Positive” Questions

Wrong conclusions are worse than no learning at all, and I call “False Positive” questions those designed to get customers to tell us what we want to hear.

All of us want our product ideas to be right – I want it, you want it, Steve Jobs wanted it. While our enthusiasm is our biggest asset, it is dangerous in customer development because most people don’t want to disappoint us.

Leading Questions

I’m building a product to help people manage medical bills. Can you tell me…”

Any question that starts with the solution already biases people’s expectations. Someone hearing this question might focus on a minor problem they had with medical billing in the past and convince us that it is a major source of pain.

Better: Skip the “I’m building a…” intro.

Questions that Put People on the Defensive

“How do you reconcile your HSA account with your bills, receipts, and statements to make sure you’re optimizing future tax savings?”

The “How do you do something complex to achieve results” questions can put people on the defensive. You can imagine someone thinking, “You mean I’m supposed to be doing something with that paperwork to save money on taxes? Oh no, I’m such an idiot, what am I doing wrong?”

Of course customers will be biased to tell us they need help with something after we cause them to doubt their own competence.

Better: “What do you do with that HSA paperwork?”

Questions Leading to Answers you Want to Hear

“Would you take a picture of a medical bill with your iPhone?”

This question sets up the prospective customer to tell us what we obviously want to hear.

Better questions would give us insight into how they currently work and whether the extra steps and inconvenience of using our products gives a promise of a big return.

Better: “Do you scan or file medical bills you get in the mail?”

This question is better because it gives someone the opportunity to disappoint us without realizing it, what Rob Fitzpatrick http://vimeo.com/40192415 calls the “mom test”.

In this case, suppose your key assumption is that managing bills via in iPhone app saves time over filing or scanning. Should they respond, “Scan them? I’m too busy for that, I don’t even open them,” you’ve just invalidated your whole company vision with one question.

The Key to Effective Customer Development

In retrospect, the root of my bad questions was that I only had an idea – I didn’t have specific hypothesis I was trying to validate. I tried to replace the hard work of documenting and testing assumptions with meetings and simply wasted time.

Always remember that Customer Development is a big commitment that takes a huge amount of time, time best spent on something else if you’re not doing it right.

Before you line up a bunch of meetings and spend weeks talking to people, take some time to carefully consider what you’re going to ask and why. The key is to make sure your questions are designed to test your assumptions. I write them down and you should too.


“Bad Customer Development Questions and How to Avoid My Mistakes” was originally published by KevinDewalt.com on January 21, 2013.
By: Kevin Dewalt, 20 years as a startup hacker, founder, & investor.

Kissmetrics user experience research manager Chuck Liu writes about why asking users what they want is the wrong question to ask, and gives readers 3 better questions to ask.

The first rule of user research: never ask anyone what they want.
— Erika Hall, Just Enough Research

I rave about user interviews. They’re cheap (see: free), potent (you get more than what you ask for), and efficient.

But good interviewing takes practice.

It helps if you’re naturally curious about people, but if you aren’t, you can still fake it till you make it. For example, Michael Margolis of Google Ventures likes to get into character .

Like Erika Hall states above, when you embark on your user interviews, you’ll want to avoid asking what they want. Asking people what they want will lead you to the wrong insights. You will not discover the root cause of a problem, but rather what they envision as their own ideal solution.

Don’t Make User Interviews Hard For Yourself:

When you ask a person what they want, you let them think within the realm of possibility. And that makes user research harder than it should be. If you’re trying to create a new product or experience that doesn’t exist yet, you’ll want to know what’s causing people to not be able to do what they want with the tools they currently have. That way, you can design for an entirely new experience or incremental improvement that helps them get the job done.

At KISSmetrics, I spend a lot my time interviewing people about what they currently use to solve a problem. Here’s what I think are 3 better questions to ask. And I ask these all the time:

  •  What are you trying to get done? (Gather context)
  •  How do you currently do this? (Analyze workflow)
  •  What could be better about how you do this? (Find opportunities)

What are you trying to get done? Why?

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Think you have to give something to get something? Sandeep De answers this popular Quora question.

Should You Offer Incentives for Interviews?

No, I wouldn’t, because you want to find problems compelling enough that people want to speak exactly because of that rather than some additional incentive.

If they’re not willing to speak, the problem is probably not big enough for them to care, or they may not actually be an early adopter.

What you want is for people to be so motivated on the possibility of a solution to a problem that they are excited to talk about it. It also helps identify if you’ve got messaging that resonates and connects to the people you’re trying to solve problems for.

Maybe the problem/solution is good but the way it’s explained isn’t. Remember the point is to turn uninterested / unaware people into actively interested.

I think incentives make sense for win/loss analysis or why people leave at various stages of the customer lifecycle (acquisition, activation, revenue, retention, etc.).  At that point, the customer has already indicated the solution is not solving something compelling for them or falling short in some way, so it makes sense to provide an incentive to come back and explain why. $50 in gift cards or to charities is pretty cheap to find and plug holes in the bucket.


“Should You Offer Incentives for Interviews?” was originally published by Quora on November 30, 2012.
Answered by: Sandeep De

Tristan Kromer shares 13 tweetable tips for customer development. # of questions you ask / # of sentences you speak = % of customer development you actually did.

Customer development is hard. It takes work to get it right and you’ll always be improving your technique. Here are a few pithy tips I like to keep in my head while I’m getting out of the building.

1) Who you are talking to is as important as what they are saying.
2) Ask the customer to describe their problem using their own words. It’s probably the exact same words they’ll type into google to find a solution.
3) Customer development takes practice. It will get easier.
4) Don’t just listen to what they say, listen to how they say it.
5) Remember the difference between a user and a customer. A customer pays you.
6) The amount of time someone will complain about a problem without prompting is directly correlated to the amount they’ll pay for a solution.
7) Smile. People want to talk to you.
8) If someone says, “I could see a lot of people might want this” it means that they themselves don’t want it.
9) People lie. A smile, a frown, a roll of the eyes will tell you more about their reaction than, “Yeah, I’d buy that.”
10) Paired customer development will allow one person to focus on asking the right questions while the other takes notes and, more importantly, critiques the interviewer.
11) If you didn’t take any notes, you weren’t doing customer development.
12) “Yes,” means no. “Where can I buy that?” means maybe. “Here’s $20 dollars,” means yes.

Suspiciously oversimplified bonus formula:

13) # of questions you ask / # of sentences you speak = % of customer development you actually did”


“12 Random Customer Development Tips” was originally published by GrassHopperHerder on July 17, 2012.
By: Tristan Kromer, lean startup coach.

Been a while since you’ve interviewed customers and want to get back to it? Jason Evanish give you some helpful tips.

Steps to Get Back on the Customer Development Horse

Step 1: Review your previous notes.

The first thing you should do is go over all of your past customer development work. Look at how you’ve already progressed and jog your memory on what you have already learned. This should include previous raw interview notes, any summaries of those notes and progress from your Lean Canvas.

This is a good time to find out if you’re taking good enough notes! If you can’t efficiently figure out what you learned, than anyone else using your notes, canvas and summaries can’t either. A great Lean Startup should be keeping their team and their advisors up to date on customer development progress and most of what they’ll have to go on are these notes.

Step 2: Schedule new customer development interviews.

Once your memory is set (this should hopefully only take an hour or two if you’re organized) then go back and see if you had any outstanding interviews to schedule. This is your low hanging fruit to schedule meetings. Reconnect with these people immediately and schedule new meetings with them as soon as possible.

Customer development is a numbers game, so regardless of if you had outstanding interviews, you need to get more feelers out for additional people to talk to; not everyone you reach out to will respond.

How to Get More Customers to Talk To

Ask Your Early AdoptersContinue Reading..


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