Customer Discovery Flashcards
Startup:
A temporary organisation in search of a scalable, repeatable, profitable business model
The customer development method
guides a systematic search for a successful business model, which helps mitigate startup risk
The four stages of customer development are
- Customer discovery
- Customer validation
- Customer creation
- Company building
During customer discovery
The founder’s vision is translated into testable business model hypotheses
During customer validation
The resulting business model is tested for repeatability and scalability
During customer creation
The market, product position, and demand are established
During company building
The organisation grows to support execution of the business model
Build-Measure-Learn Loop
is a process that uses customer feedback and learning cycles to develop products or services, and is started once the MVP is made.
The market opportunity
is defined by the type of market and whether it is large enough to be profitable with market research
Primary market research:
new research conducted by the entrepreneur or their team
Secondary market research:
research obtained from other resources
Top-down analysis:
estimates the total market, and then narrows to the predicted share of that market
Bottom-up analysis:
estimates one component and then sees how large it could scale
Generally, you bring a product to market by:
Entering an existing market, creating a new market, re-segmenting an existing market, or recreating a successful model in another region
Total addressable market (TAM):
The maximum market demand for a product or service
Served addressable market (SAM):
The portion of TAM targeted by your product that is feasibly within reach of your company’s sales channels
Target market:
A particular group of consumers at which a product or service is aimed
Business Model Canvas:
a template that summarises the nine key components of a business model in a single diagram
The BMC’s starting point is:
The value proposition. It identifies how an offering will be successful, its features and benefits, and any ideas for a minimum viable product
A complete BMC covers:
Customers (target customers, channels, and relationships), Infrastructure (resources, activities, and partners), and Finances
Lean Canvas:
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
Pass/Fail tests:
are used to validate (or update) the hypotheses on a business model canvas
Problem presentations:
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.
Customer discovery scorecard:
A document that is used to score customer’s responses on a variety of criteria
Proof of concept:
A non-user friendly, internal test to see if a product can be built
Prototype:
A working model that approximates the final product, but isn’t quite ready for customers
Minimum viable product:
The simplest possible customer-ready version of a product.
There are several types of MVPs including:
Single feature MVPs, Concierge MVPs, Landing page MVPs, and Customer funded MVPs.
