Customer Discovery

Question 1

Startup:

Answer 1

A temporary organisation in search of a scalable, repeatable, profitable business model

Question 2

The customer development method

Answer 2

guides a systematic search for a successful business model, which helps mitigate startup risk

Question 3

The four stages of customer development are

Answer 3

1. Customer discovery
2. Customer validation
3. Customer creation
4. Company building

Question 4

During customer discovery

Answer 4

The founder’s vision is translated into testable business model hypotheses

Question 5

During customer validation

Answer 5

The resulting business model is tested for repeatability and scalability

Question 6

During customer creation

Answer 6

The market, product position, and demand are established

Question 7

During company building

Answer 7

The organisation grows to support execution of the business model

Question 8

Build-Measure-Learn Loop

Answer 8

is a process that uses customer feedback and learning cycles to develop products or services, and is started once the MVP is made.

Question 9

The market opportunity

Answer 9

is defined by the type of market and whether it is large enough to be profitable with market research

Question 10

Primary market research:

Answer 10

new research conducted by the entrepreneur or their team

Question 11

Secondary market research:

Answer 11

research obtained from other resources

Question 12

Top-down analysis:

Answer 12

estimates the total market, and then narrows to the predicted share of that market

Question 13

Bottom-up analysis:

Answer 13

estimates one component and then sees how large it could scale

Question 14

Generally, you bring a product to market by:

Answer 14

Entering an existing market, creating a new market, re-segmenting an existing market, or recreating a successful model in another region

Question 15

Total addressable market (TAM):

Answer 15

The maximum market demand for a product or service

Question 16

Served addressable market (SAM):

Answer 16

The portion of TAM targeted by your product that is feasibly within reach of your company’s sales channels

Question 17

Target market:

Answer 17

A particular group of consumers at which a product or service is aimed

Question 18

Business Model Canvas:

Answer 18

a template that summarises the nine key components of a business model in a single diagram

Question 19

The BMC’s starting point is:

Answer 19

The value proposition. It identifies how an offering will be successful, its features and benefits, and any ideas for a minimum viable product

Question 20

A complete BMC covers:

Answer 20

Customers (target customers, channels, and relationships), Infrastructure (resources, activities, and partners), and Finances

Question 21

Lean Canvas:

Answer 21

A modified version of the BMC that includes less about logistics and more about the customer. It takes the focus away from operations and places the emphasis on ideas

Question 22

Pass/Fail tests:

Answer 22

are used to validate (or update) the hypotheses on a business model canvas

Question 23

Problem presentations:

Answer 23

Conversations in which customers give feedback on the startup’s assumptions about their problems

You should aim to talk to 50 people, and focus on customer problems, current solutions, and proposed solutions.

Question 24

Customer discovery scorecard:

Answer 24

A document that is used to score customer’s responses on a variety of criteria

Question 25

Proof of concept:

Answer 25

A non-user friendly, internal test to see if a product can be built

Question 26

Prototype:

Answer 26

A working model that approximates the final product, but isn’t quite ready for customers

Question 27

Minimum viable product:

Answer 27

The simplest possible customer-ready version of a product.

Question 28

There are several types of MVPs including:

Answer 28

Single feature MVPs, Concierge MVPs, Landing page MVPs, and Customer funded MVPs.