Customer development : Bob Dorf's slides for his conference in Paris. October 2013.
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This document summarizes Steve Blank's Customer Development methodology for starting a startup. It emphasizes the importance of getting out of the building to test assumptions with potential customers through minimum viable products and pivoting based on customer feedback. Key steps include searching for a problem worth solving, conducting customer discovery interviews without selling, using feedback to validate or pivot the idea, and iterating quickly through this process to find product-market fit and a repeatable business model before spending time on execution. The goal is to minimize cash usage and failure rate by continuously learning what customers want through direct engagement from the founders.
Customer development : Bob Dorf's slides for his conference in Paris. October 2013.
- 1. Sortez de votre bureau ! www.diateino.com BOB DORF allegedly retired serial entrepreneur Twitter: @bobdorf www.bobdorf.co www.steveblank.com Many slides 息 Steve Blank
- 2. 7=2+2-3
- 3. 27=7-6
- 5. 650,000!
- 6. 12? (or 2%?)
- 8. The New Way, 2003: Steve Blank Launches CUSTOMER DEVELOPMENT
- 9. In Ten fast years: Stanford, Berkeley Columbia U, Skolkovo,100+ more Tech de Monterrey US National Science Foundation THOUSANDS of Startups APPS.CO/Colombian Government Incubators, Accelerators more than we can count!
- 10. More startups fail from a lack of customers than from a failure to build product
- 11. Why Most Startups Fail Assume Customer Problem: Concept/ Seed Round Product Dev. known Alpha/Beta Test Assume Product Features: Launch/ 1st Ship known
- 13. We used to think:
- 14. All You Need to Do: Execute the Plan
- 15. No Business Plan survives first contact with customers! ask Webvan! or RIM or Zynga or many more
- 16. Dont Spend 2 Months writing Fairy Tales Spend that time SEARCHING for a Repeatable, Scalable, Profitable BUSINESS MODEL
- 20. FULL STOP! HAVE YOU PROVEN PRODUCT/MARKET FIT
- 23. The most important slide Steve Blank ever drew, circa 2003:
- 25. Customer Discovery Step 1: Get Out of the Building! 1. Does anybody care? 2. Do they grab it from you? 3. Become your own Customer! Key Warnings: DONT talk to friends or family! FOUNDERS must do this themselves DO NOT SELL!!!
- 26. Customer Discovery Tool #1: Your Minimum Viable Product Google without ads Zappos without any shoes Diapers.com without diapers Non-Working Websites or Apps! Fewest possible features to show what it does! Something a customer can touch, feel, try Delivers far more, richer customer feedback
- 27. Tool #2: The Pivot Search Customer Discovery Customer Validation Pivot The heart of Customer Development Iteration without crisis Fast, agile and opportunistic
- 28. Just a few(of many) Historic Pivots Groupon: the $12billion pivot Steve Blank: Page 6 Perimeter: there are 9000 of us Ning Zynga and thousands more!
- 29. Pivot Cycle Time Matters Search Customer Discovery Customer Validation Execution Customer Creation Company Building Pivot MVP speeds up cycle time Speed of cycle minimizes cash needs Customer feedback drives the product!
- 30. How do you know when Discovery is done? Key Partners Key Activities Value Proposition Customer Relationships Customer Segments Complete regional overview Populate life cycle data for performance guarantees key distinctive product features & benefits for the target customer segment total cost of ownership for segment versus alternatives why will segment buy Durathon versus alternatives (i.e. value proposition) minimum feature set (i.e. our launch configuration) and ultimate feature set opportunities to claim IP or trademark / is there freedom to practice what regulatory/ certification/ transportation/ customs requirements should be met or could be differentiator product positioning/elevator pitch for each segment Prospect roadmap: how to get faceto-face with right person at prospects in each segment key competitors in each segment and their market share key competitors' characteristics & dynamics What outbound marketing/ advertising/ promotion activities are needed support tools required by segment (white papers, TCO calc., tradeshow) pipeline of leads identify key market segments (geography/application) and customer segments (e.g. operator versus owner) how many customers in each segment and estimated potential volume for each customer how do customers make money key customer pain/gain points in each segment how are buying decisions made in each segment - id process, hurdles, decision makers what does an Earlyvangelist look like in each segment who influences purchases in each segment (trade groups, key resellers, trend watchers) Who are our key partners/ suppliers Which key activities does the biz model require What value do we deliver to the customer Educate market on metric: $/kWhday delivered over life of asset Establish strong partnerships with channel partners 0 Key Resources Which key resources does the biz model require Integrated power system engineering compatibility for retrofit and optimized system solutions Financing options for Power services operators What type of relationship does each segment require of us 25 Channels Through which channel does each segment want to be reached which segments can only or best be reached through a channel partner which channel partners are important to optimize sales in each segment what are channel partners' requirements and cost to become a proactive sales channel initial channel partner response to value proposition & customer segments 12 25 Cost Structure For whom are we creating value 4 50 Revenue Streams What are our cost drivers How much is each segment willing to pay and how would they like to pay us this amount Launch reliability What are price /performance characteristics of competing technology What is the 2013 price target for 1 MM cells What is the 2015 price target for 10 MM cells what is optimum sales method for each segment (asset sale, lease, pay for performance, etc.) 3 X = number of in depth customer data points / data sources used to validate hypothesis x x x red = low hypothesis confidence yellow = medium hypothesis confidence green = high hypothesis confidence 30 10/26/2013
- 31. Customer Validation Search Customer Discovery Customer Validation Pivot Customer Creation Company Building Execution Repeatable, scalable profitable? Passionate first paying customers? Pivot back to Discovery if not!
- 32. When It Doesnt Work (most of the time)
- 33. Merci ! www.diateino.com BOB DORF allegedly retired serial entrepreneur Twitter: @bobdorf www.bobdorf.co www.steveblank.com