Chapter 7: Developing Your Customers

Question 1

What is a customer vs. a consumer?

Answer 1

Customer: Purchasers
Ex: Parent buying a toy at the store

Consumer: End-users
Ex: Child playing with the toys

Question 2

What do customer personas consist of? (6 items)

Answer 2

1. Demographics: Age, gender, income, location
2. Psychographics: Values, lifestyles, motivations
3. Proxy Product: Product that gives you an idea of what else your potential customer is likely to buy or are currently using.
4. Day in the life: A profile of end users’ daily lives
5. Biggest fears and motivators: What keeps your end users awake at night and their top fears and motivators.
6. Pain Points: Specific problems customers need to solve.

Question 3

What are the elements of a customer journey map?

Answer 3

1. Discovery: Need is identified by the customer
2. Research: Finding information about the need
3. Purchase: Making a decision to buy a specific product/service
4. Delivery of the product
5. After the sale

Question 4

What is the adoption curve?

Answer 4

Innovators: The very first users, loves to try new things, doesn’t mind risks.

Early Adopters: The trendsetters, try new things early, influence others.

Early Majority: Careful but open - adopt when they see that it’s working.

Late Majority: Skeptical - only join once its very popular.

Laggards: Resistant - Hate change, adopt last or never.

Question 5

What does crossing the chasm mean?

Answer 5

You have to start by finding your “launch market” which is a small group of people who urgently want what you have. Then you win them over hard by getting real results and use their success to attract a bigger, more cautious crowd later.

If you pick wrong, you fall into the chasm. You don’t try to sell to everyone right away.

Question 6

What is TAM?

Answer 6

TAM = Total Available Market

The broadest potential market for the product.

Example: Everyone in the world who drinks coffee

Question 7

What is SAM?

Answer 7

SAM = Serviceable Available Market

The portion of TAM the business can realistically serve based on your business model, location, and offering.

Example: Everyone in Montreal who drinks coffee

Question 8

What is SOM?

Answer 8

SOM = Share of Market

The market share the business expects to capture. Short-term target.

Example: 10,000 students and workers downtown who are most likely to visit your shop daily.