customer development, bmc, hypothesis, experiment, results, iterate
DESCRIPTION
This is section one of the learnings from Steve Blanks and Startup Weekends 3 day crash course of SXSW 2013. The program was called NEXT@SXSW and it focused on customer development.TRANSCRIPT
Learnings from SXSWSteve Blank, Bob Dorf & Startup Weekend
March 8th-11th, 2013Austin Texas
Business Model Canvas (creation and modification)
Customer Segments
Value Proposition
H-E-R-I
Learnings and Insights
Change BMC
Presentation Topics
Business Model Canvas(modification)
Customer Relationships,Get, Keep, Grow
Channels
Revenue Model
H-E-R-I
Learnings and Insights
Section 1 Section 2 Section 3
Business Model Canvas (modification)
Diagram
Here's What We Thought
Here's What We Learned
Here's What We Are Going To Do Next
Highlight Most Important Learnings
Presentation Topics
Business Model Canvas (creation and modification)
Customer Segments
Value Proposition
H-E-R-I
Learnings and Insights
Change BMC
Section 1
Business Model CanvasQuick Overview. Section 1
Entire business in one placeAlways changes as business progresses
Keep it clean and simpleTo learn more watch Lessons 1&2 of Steve Blanks Udacity Video (it's free)
Customer SegmentsSection 1
Customer Segments are a clear description of who your consumer is. Where do they live, how old are they, what are they interested in?
Bar OwnerProfessional bar owners between the ages of 21-55 who are actively looking to improve their existing business.
Bar Goers21-35 year old males and females who go out in social groups that own smartphones (Android and iOS).
Value PropositionsSection 1
Value Propositions are what you hypothesize will be the best propositions to your customer segments.
ConvenienceEntertainment Saving Money
Increased EfficiencyCustomer Outreach
Cash SecurityAnalytics
ProblemsSection 1
In order to effectively communicate your Value Proposition it can be helpful to highlight the problem (don't do this in the BMC).
Increased EfficiencyCustomer Outreach
Cash SecurityAnalytics
ConvenienceEntertainment Saving Money
ProblemInefficiencies in transactionsKeeping up with marketingBreakage in transactionsBringing customers in
ProblemWaiting in line for a drinkClosing TabsMissing Out
These are all GUESSESSection 1
An important thing to remember is that everything in your business model canvas is one big guess. The only way you will KNOW if they are correct is by getting out
of the building and talking to customers face to face.
The Process:
Hypotheses - Here's what we thought
Experiment - Here's what we did
Results - Here's what we found
Iterate - Here's what we're going to do next
The acronym = H-E-R-I
Experiment example from Tappr Section 1
Ask bar goers a set of questions that directly measure our hypotheses:Do you have problems getting your drinks at the bar?Are you likely to use mobile payments at a bar?Would you send drinks as gifts to friends?Would you order on your phone?What kinds of bars do you usually go to?Would you pay extra for your drink to be able to pay with your phone? How much?Do you read bar table tents or posters?
Ask bar owners a similar set of questions:Would you send free drinks to your customers over the internet?How much would you pay for our value propositions?How much do you spend on marketing?Do you have a loyalty program?
Something to note: Tappr later discovered that their questions were too direct and data was skewed because of it. Learning - Stay away from leading questions.
Now that we have some hypotheses (the customer segments and propositions. Let's run an experiment
Questions and TrackingSection 1
Try using a Google Spreadsheet with all of the interview questions and answers
Face-Face > SurveySection 1
It is extremely important to talk to your potential customers IN PERSON.The key is to look for a solution that makes their eyes dilate and find your early-
vangelists.
In surveys, customers are given a set list of questions and the conversation doesn't flow. In person, the conversation can flow to anything and you might discover an
insight you may have never thought of.
Hypotheses/Results from Tappr Section 1
HypothesesAre interested in spending less time in line - 75%Wants to place orders on their phone - 50%Bar goers will send gifts to their friends to get them out to the bar - 35%Bar goers will send gifts to their friends on special occasions - 60%Bar goers will go to a bar if the bar sends them a free drink - 20%
Results69% said they'd order on their phone68% Use mobile payments already90% Would use mobile payments at a bar85% Would go to a bar if they received a free drink from the bar24% have issues getting their drink at the bar81% would socially send drinks to friends
Now that we are finished with Hypotheses, Experiments and Results. Let's cover Iterate
Lay out the hypotheses and results in an easy to read format
pass/fail numbers
Iterate Example from Tappr Section 1
Next StepsTalk to more bar owners.
Continue getting customer interviews to continue focus more on how mobile payments and gift drinks would be used.
Now that you have some learnings and results, lay out what you are going to do next and any iterations if you have them. Although it is early, you may have found
some deep insights for your business. Cover them here.
ExampleSection 1
See how these business model canvases progress
ExampleSection 1
See the organized colors with customer segments. The grey signifies it is for both segments
ExampleSection 1
As learnings and experiments were conducted. The red text shows what has changed.
3/9/13
RecommendationsSection 1
Next StepsTalk to more bar owners.
Continue getting customer interviews to continue focus more on how mobile payments and gift drinks would be used.
Don't launch an MVP until you have spoken with customersGo out and do your own face to face validation
Watch the pupils dilate