Customer Validation in Business Planning
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Questions and Answers

What are the assumptions that need to be validated in the company building process?

  • The problem you addressed is actually a problem
  • The solution you propose will actually solve the problem
  • All of the above (correct)
  • The market you plan to target has this problem

    • You should ask questions to your professors or parents during the customer discovery process.

    False

    What is the purpose of Customer Discovery?

    To validate assumptions and get feedback from potential customers

    It is cheaper to revise your idea during the _____________ process.

    <p>beginning</p> Signup and view all the answers

    What is the purpose of Customer Validation?

    <p>To obtain hard evidence regarding the possible success of your business model</p> Signup and view all the answers

    You should move on with your original idea without incorporating customer feedback.

    <p>False</p> Signup and view all the answers

    Match the following steps with their descriptions:

    <p>Step One = Define the problem and propose a solution Step Three = Ask potential customers questions Step Four = Evaluate and refine the idea</p> Signup and view all the answers

    What is the outcome of performing the customer discovery process correctly?

    <p>You'll discover some things that you had not originally considered</p> Signup and view all the answers

    Who are the two serial entrepreneurs known for their contribution to the 'Lean Startup' methodology?

    <p>Steve Blank and Eric Ries</p> Signup and view all the answers

    Customer discovery involves a process that exactly follows the traditional scientific method.

    <p>False</p> Signup and view all the answers

    What is the primary goal of customer discovery?

    <p>To question your core business assumptions</p> Signup and view all the answers

    The Lean Startup is all about utilizing ______________ very early on in the business development process.

    <p>customers</p> Signup and view all the answers

    Match the steps of customer discovery with their descriptions:

    <p>Step One = Define a hypothesis that defines both the problem and the solution Step Two = Define your assumptions about your idea Step Three = Not mentioned in the content Step Four = Not mentioned in the content</p> Signup and view all the answers

    What is the role of the founder in customer discovery?

    <p>A scientist or detective</p> Signup and view all the answers

    Customer discovery is a customer-centric process.

    <p>True</p> Signup and view all the answers

    What is the outcome of performing customer discovery correctly?

    <p>Evidence behind an assumed product-market fit</p> Signup and view all the answers

    What is the primary goal of company building?

    <p>To transition from a start-up to a fully-fledged business</p> Signup and view all the answers

    True or False: The company and product launch will occur multiple times.

    <p>False</p> Signup and view all the answers

    What is the purpose of defining year one objectives in the customer creation phase?

    <p>To define specific and reasonable goals for the company to accomplish in the first year</p> Signup and view all the answers

    To create a demand creation strategy, you need an understanding of ___________ and how they purchase products.

    <p>customers</p> Signup and view all the answers

    Match the following steps with their descriptions:

    <p>Year One Objectives = Defining specific and reasonable goals for the company to accomplish in the first year Company and Product Positioning = Positioning the product and company within the market Company and Product Launch = Launching the product and company Demand Creation = Creating a demand for the product</p> Signup and view all the answers

    What is necessary to create a demand creation strategy?

    <p>Both a and b</p> Signup and view all the answers

    True or False: Company building is focused on learning and discovery.

    <p>False</p> Signup and view all the answers

    What is the purpose of positioning the company and product within the market?

    <p>To define how the product and company will be perceived in the market</p> Signup and view all the answers

    Why is customer validation important according to Steve Blank?

    <p>Because it helps you avoid building a product that no one wants</p> Signup and view all the answers

    Iteration is not important in the customer validation step.

    <p>False</p> Signup and view all the answers

    What is the main goal of the customer creation step?

    <p>To provide an experience that drives market demand straight into the sales channel of the company.</p> Signup and view all the answers

    Hearing customers say that they would buy your product is nice but it is ultimately ______________ until they actually put their money where their mouth is.

    <p>meaningless</p> Signup and view all the answers

    What happens when a business moves on to the customer creation step?

    <p>It finds its initial customers and makes its initial sales</p> Signup and view all the answers

    Customer validation is only necessary for startups.

    <p>False</p> Signup and view all the answers

    Match the following steps with their corresponding goals:

    <p>Customer Validation = To validate assumptions and avoid building a product that no one wants Customer Creation = To provide an experience that drives market demand straight into the sales channel of the company</p> Signup and view all the answers

    What is the importance of early evangelists and adopters in the customer creation step?

    <p>They validate your value propositions and demonstrate that you have a real customer base.</p> Signup and view all the answers

    What type of customers are mainstream customers?

    <p>Pragmatists</p> Signup and view all the answers

    Mainstream customers want revolutionary solutions.

    <p>False</p> Signup and view all the answers

    What is the purpose of Phase 2 of company building?

    <p>To review the current management, including the CEO and executive staff</p> Signup and view all the answers

    In Phase 3 of company building, you begin to set up your departments according to your _______ and strategy.

    <p>mission statement</p> Signup and view all the answers

    What is the goal of Phase 4 of company building?

    <p>To ensure that everything built is agile, scaled, and capable of being a “fast-response” department</p> Signup and view all the answers

    Mainstream customers want minor flaws in the products they use.

    <p>False</p> Signup and view all the answers

    Match the following phases of company building with their descriptions:

    <p>1: Reach out to your mainstream customers = Phase 1 2: Review your current management = Phase 2 3: Begin your transition to functioning Departments = Phase 3 4: Maintain Your Moment with Agile Departments = Phase 4</p> Signup and view all the answers

    What type of solutions do mainstream customers look for?

    <p>Evolutionary solutions</p> Signup and view all the answers

    Study Notes

    Customer Development Process

    • Customer development process is a customer-centric, scientific process that puts evidence behind an assumed product-market fit.
    • It involves questioning core business assumptions and getting out of the building to talk to real customers.
    • The process helps avoid building a product that no one wants and allows for iteration and refinement.

    Customer Discovery

    • Customer discovery is all about staying lean and questioning business assumptions.
    • The process involves observing and defining a phenomenon (problem or market need), developing a hypothesis, and conducting an experiment to test the hypothesis.
    • The goal is to find evidence that proves or disproves the hypothesis.

    Steps of Customer Discovery

    • Step One: Define a Hypothesis
      • Define the problem and solution being proposed
      • Fill in the sentence: "My idea solves [insert problem] by [insert solution]"
    • Step Two: Define Your Assumptions
      • Make assumptions about the idea and identify what needs to be validated
    • Step Three: Ask (Good) Questions
      • Get out of the building and ask questions to potential customers
      • Target people who could be potential customers
    • Step Four: Evaluate and Refine
      • Evaluate customer responses and refine the hypothesis
      • Revise the idea based on customer feedback

    Customer Validation

    • Customer validation is obtaining hard evidence regarding the possible success of a business model.
    • It involves getting out of the building and talking to real customers to validate assumptions.
    • The goal is to prove or disprove the hypothesis and refine the idea.

    Customer Creation

    • Customer creation is providing an experience that drives market demand straight into the sales channel of the company.
    • It involves enlisting market influencers, early evangelists, and adopters to validate the value proposition.
    • The goal is to create a market that will drive sales.

    The Four Parts of Customer Creation

    • Year One Objectives
      • Define specific and reasonable objectives for the first year
      • Define what success means for the company
    • Company and Product Positioning
      • Position the product and company within the market
      • Develop a strategy to reach customers
    • Company and Product Launch
      • Develop a strategy for the product and company launch
      • Define what is needed to achieve launch goals
    • Demand Creation
      • Develop a strategy to create demand
      • Identify influencers, analysts, and customer purchasing decisions

    Company Building

    • Company building is transitioning from a start-up to a fully-fledged business.
    • It involves setting up formal departments and a scaled business development model.
    • The goal is to create a company that is agile, scaled, and capable of responding to change.

    The Four Phases of Company Building

    • Reach out to mainstream customers
      • Identify and target mainstream customers who are pragmatists
      • Provide evolutionary solutions that are simple and reliable
    • Review your current management
      • Review the CEO and executive staff
      • Ensure they are aligned with the mission and strategy
    • Begin your transition to functioning departments
      • Set up departments according to the mission statement and strategy
      • Define goals for each department
    • Maintain your moment with agile departments
      • Ensure departments are agile, scaled, and capable of responding to change

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    Related Documents

    CUSTOMER DEVELOPMENT.pptx

    Description

    Learn about the importance of customer validation in business planning, why it's essential to prove assumptions, and how it can prevent failures.

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