Podcast
Questions and Answers
What are the assumptions that need to be validated in the company building process?
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.
You should ask questions to your professors or parents during the customer discovery process.
False (B)
What is the purpose of Customer Discovery?
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.
It is cheaper to revise your idea during the _____________ process.
What is the purpose of Customer Validation?
What is the purpose of Customer Validation?
You should move on with your original idea without incorporating customer feedback.
You should move on with your original idea without incorporating customer feedback.
Match the following steps with their descriptions:
Match the following steps with their descriptions:
What is the outcome of performing the customer discovery process correctly?
What is the outcome of performing the customer discovery process correctly?
Who are the two serial entrepreneurs known for their contribution to the 'Lean Startup' methodology?
Who are the two serial entrepreneurs known for their contribution to the 'Lean Startup' methodology?
Customer discovery involves a process that exactly follows the traditional scientific method.
Customer discovery involves a process that exactly follows the traditional scientific method.
What is the primary goal of customer discovery?
What is the primary goal of customer discovery?
The Lean Startup is all about utilizing ______________ very early on in the business development process.
The Lean Startup is all about utilizing ______________ very early on in the business development process.
Match the steps of customer discovery with their descriptions:
Match the steps of customer discovery with their descriptions:
What is the role of the founder in customer discovery?
What is the role of the founder in customer discovery?
Customer discovery is a customer-centric process.
Customer discovery is a customer-centric process.
What is the outcome of performing customer discovery correctly?
What is the outcome of performing customer discovery correctly?
What is the primary goal of company building?
What is the primary goal of company building?
True or False: The company and product launch will occur multiple times.
True or False: The company and product launch will occur multiple times.
What is the purpose of defining year one objectives in the customer creation phase?
What is the purpose of defining year one objectives in the customer creation phase?
To create a demand creation strategy, you need an understanding of ___________ and how they purchase products.
To create a demand creation strategy, you need an understanding of ___________ and how they purchase products.
Match the following steps with their descriptions:
Match the following steps with their descriptions:
What is necessary to create a demand creation strategy?
What is necessary to create a demand creation strategy?
True or False: Company building is focused on learning and discovery.
True or False: Company building is focused on learning and discovery.
What is the purpose of positioning the company and product within the market?
What is the purpose of positioning the company and product within the market?
Why is customer validation important according to Steve Blank?
Why is customer validation important according to Steve Blank?
Iteration is not important in the customer validation step.
Iteration is not important in the customer validation step.
What is the main goal of the customer creation step?
What is the main goal of the customer creation step?
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.
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.
What happens when a business moves on to the customer creation step?
What happens when a business moves on to the customer creation step?
Customer validation is only necessary for startups.
Customer validation is only necessary for startups.
Match the following steps with their corresponding goals:
Match the following steps with their corresponding goals:
What is the importance of early evangelists and adopters in the customer creation step?
What is the importance of early evangelists and adopters in the customer creation step?
What type of customers are mainstream customers?
What type of customers are mainstream customers?
Mainstream customers want revolutionary solutions.
Mainstream customers want revolutionary solutions.
What is the purpose of Phase 2 of company building?
What is the purpose of Phase 2 of company building?
In Phase 3 of company building, you begin to set up your departments according to your _______ and strategy.
In Phase 3 of company building, you begin to set up your departments according to your _______ and strategy.
What is the goal of Phase 4 of company building?
What is the goal of Phase 4 of company building?
Mainstream customers want minor flaws in the products they use.
Mainstream customers want minor flaws in the products they use.
Match the following phases of company building with their descriptions:
Match the following phases of company building with their descriptions:
What type of solutions do mainstream customers look for?
What type of solutions do mainstream customers look for?
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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Description
Learn about the importance of customer validation in business planning, why it's essential to prove assumptions, and how it can prevent failures.
