lean launchpad tucson - customer segments
DESCRIPTION
TRANSCRIPT
Lean LaunchpadCustomers / Users / Payers
Aaron EdenCreated by Steve Blank
Weekly Topics
» 5/12 – What to Expect» 5/19 – First Pitches» 5/26 – Experiment Day» 6/2 –Value Propositions» 6/9 – Customers, Users, Payers» 6/16 – Distribution Channels (Justin)» 6/23 – Customer Relationships (Andrew)» 6/30 – Revenue Models» 7/7 – Partners» 7/14 – Key Resources & Costs» 7/21 – Lessons Learned Presentations
Agenda
» Team Presentations» Customer Segments» Mentoring
Presentations
» How many customers did you talk to?» What were your value proposition hypotheses?» What do customers think about your value
proposition hypotheses?» Post updates in the Google group (lessons
learned, canvas changes)
WionTV
Appstore Analytics
Verb Club
City Recess
Forward Intelligence
CUSTOMER SEGMENTS
images by JAM
which customers and users are you serving? which jobs do they really want to get done?
CUSTOMER SEGMENTS
images by JAM
which customers and users are you serving? which jobs do they really want to get done?
Corporate? Consumer?
» Business to Business (B to B)˃ Use or buy inside a company
» Business to Consumer (B to C)˃ Use or buy for themselves
» Business to Business to Consumer (B to B to C)˃ Sell a business to get to a consumer˃ Other Multi-sided Markets with multiple customers
Customer Types
» Saboteurs » Intermediaries (OEM’s and resellers)
Market Type & Ignoring Customers
» Clone Market?» Existing Market? » Resegmenting an Existing Market?
˃ niche or low cost
» New Market?
» When do I ignore customer feedback?
General Heuristics
» You need to talk to more customers than you ever thought possible – 100’s physically, 1000’s on the web
» “I left a message” or “I sent an email” doesn’t count – it’s confusing motion with action
» Do NOT start at the top. You only get one meeting. You’ll almost certainly look like an idiot˃ First figure out the order of battle
Business to Business (B to B)
Corporate Customers
What do they want you to do?
» Increase revenue?» Decrease costs?» Get them new customers?» Keep up with or pass competitors?» How important is it?» Problem or a Need?
Customer Problem
Customer Problem
Customer Problem
Customer Problem
Customer Problem
Who’s the Customer in a Company?
» User?» Influencer?» Recommender?» Decision Maker?» Economic Buyer?» Saboteur?» Archetypes for each?
How Do They Interact to Buy?
» Organization Chart» Influence Map» Sales Road Map
Pass/Fail Signals & Experiments
» How do you test interest?» Where do you test interest?» What kind of experiments can you run?» How many do you test?
How Do They Hear About You?
» Demand Creation» Network effect» Sales
If It’s a Multi-sided Market Diagram It!!
MammOpticsHospital purchasing decision tree
MammOpticsPrivate practice purchasing decision tree
Business to Consumer (B to C)
ConsumerCustomers
What do they want you to do?
» Does it entertain them?» Does it connect them with others?» Does it make their lives easier?» Does it satisfy a basic need?» How important is it?» Can they afford it?
Archetypes
Consumer Customers
» Do they buy it by themselves?» Do they need approval of others?» Do they use it alone or with others?
How Do They Decide to Buy?
» Demand Creation» Viral?» SEO/SEM» Network effect?» AARRR (Dave McClure)
Pass/Fail Signals & Experiments
» How do you test interest?» Where do you test interest?» What kind of experiments can you run?» How many do you test?
The Consumer Sales Channel
» A product that’s bits can use the web» But getting a physical consumer product into retail
distribution is hard» Is Wal-Mart a customer?» More next week
Business to Business to Consumer (B to B to C)
Multi-Sided Markets
Who’s The Customer?
» Consumer End Users, Corporate Customers Pay» Multiple Consumers» Etc.
Multiple Customer Segments
» Each has its own Value Proposition» Each has its own Revenue Stream» One segment cannot exist without the other» Which one do you start with?
Market Type
Definitions: Four Types of Markets
» Clone Market˃ Copy of a U.S. business model
» Existing Market˃ Faster/Better = High end
» Resegmented Market˃ Niche = marketing/branding driven˃ Cheaper = low end
» New Market˃ Cheaper/good enough, creates a new class of product/customer˃ Innovative/never existed before
Clone Market
Existing Market Resegmented Market
New Market
Market Type determines: Rate of customer adoption
Sales and Marketing strategies Cash requirements
Market TypeExisting Resegmented New
Customers Known Possibly Known Unknown
Customer Needs
Performance Better fit Transformational improvement
Competitors Many Many if wrong, few if right
None
Risk Lack of branding, sales and distribution ecosystem
Market and product re-definition
Evangelism and education cycle
Examples Google Southwest Groupon
Market Type - Existing
» Incumbents exist, customers can name the mkt» Customers want/need better performance» Usually technology driven
» Positioning driven by product and how much value customers place on its features
» Risks:˃ Incumbents will defend their turf˃ Network effects of incumbent˃ Continuing innovation
Market Type – Resementing Existing
» Low cost provider (Southwest)» Unique niche via positioning (Whole Foods)
» What factors can:˃ you eliminate that your industry has long competed on?˃ Be reduced well below the industry’s standard?˃ should be raised well above the industry’s standard?˃ be created that the industry has never offered? (blue ocean)
Market Type – New
» Customers don’t exist today» How will they find out about you?» How will they become aware of their need?» How do you know the market size is compelling?
» Which factors should be created that the industry has never offered? (blue ocean)
Homework
» Talk to 10-15 customers face-to-face» What were your hypotheses about users and customers? Did you learn
anything different? » Did anything change about Value Proposition? » What do customers say their problems are? How do they solve this
problem(s) today? Does your value proposition solve it? How?» What was it about your product that made customers interested? excited?» If B-B, who’s: decision maker, size of budget, what are they spending it on
today, how will this buying decision be made?» Update Google Group
Read» Business Model Generation, pages 127-133» Startup Owners Manual, pages 227-256, 332-342