customer development, bmc, hypothesis, experiment, results, iterate

17
Learnings from SXSW Steve Blank, Bob Dorf & Startup Weekend March 8th-11th, 2013 Austin Texas

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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

Page 1: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

Learnings from SXSWSteve Blank, Bob Dorf & Startup Weekend

March 8th-11th, 2013Austin Texas

Page 2: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

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

Page 3: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

Presentation Topics

Business Model Canvas (creation and modification)

Customer Segments

Value Proposition

H-E-R-I

Learnings and Insights

Change BMC

Section 1

Page 4: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

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)

Page 5: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

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).

Page 6: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

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

Page 7: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

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

Page 8: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

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

Page 9: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

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

Page 10: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

Questions and TrackingSection 1

Try using a Google Spreadsheet with all of the interview questions and answers

Page 11: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

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.

Page 12: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

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

Page 13: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

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.

Page 14: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

ExampleSection 1

See how these business model canvases progress

Page 15: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

ExampleSection 1

See the organized colors with customer segments. The grey signifies it is for both segments

Page 16: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

ExampleSection 1

As learnings and experiments were conducted. The red text shows what has changed.

3/9/13

Page 17: Customer Development, BMC, Hypothesis, Experiment, Results, Iterate

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