Posts Tagged ‘customer’

Customer Discovery: The Maiden Voyage

May 1st, 2010

The past couple of days I was at a Career Expo of sorts for students and decide to use the opportunity to do a little survey work to see if I could discover some customers and test my assumptions and hypothesis around Tshirts4Hire.com.

The problem is different for our two subsets of customers since it is a marketplace. For the purposes of this post I’ll approach it from a sellers’ point of view. The seller is also who I’ve decided is the primary customer for us-they supply the resource: influence.

The problem we are seeking to solve is the need for money. My hypothesis is that if we can give them the tools and system to be self sustaining then they will be able to meet that need. There I go; I’ve already skipped over my first assumption. I’m assuming people want to make money and are just missing the opportunity or skills.

I think I can provide the opportunity to use some untapped skills or resource. The opportunity is to become an influence marketer. Layman’s terms wear a t-shirt and use your own social media network to promote businesses. So there are several assumptions that need testing in that solution. I needed to answer the following questions:

  1. Are people willing to wear a t-shirt all day instead of what they want to wear for money?
  2. Are people willing to use their social media network to promote companies to their friends?
  3. Are people willing to approach businesses and propose that the business pay them to promote their company?

I was also curious about two other things that facilitate the spread or growth of this opportunity-sign up fees and agents. I wanted to know if people were willing to pay for this opportunity and if they would pay someone to set up business on their behalf.

So I created a simple survey basically asking those same questions to this age specific age group. I was encouraged by the answers but it also helped me to realize it isn’t quite the right population to continue to invest money in recruiting.

In fact we decided to eliminate the opportunity for those in the lower part of the age group because of the time investment required to educate and facilitate the process for them, speaking generally and not individually.

Now I’ve made another set of assumption about a different age group that I need to test. I’m looking for positive results that indicate almost all of a particular group will be interested in the solution we are offering. My first pivot is from a younger crowd to one just a little bit older that are venturing out on their when they first realize the actual need for money. It’s not a big pivot but a different focus than I originally thought.

Thank Goodness for Smarter People

April 27th, 2010

Good news! You no longer have to wait for me to give the play-by-play of what happened at the Startup Lessons Learned conference. Sure you’ll miss my Ferris Bueller-esk commentary (okay it isn’t that funny except in my own head) but it is time to move on to other things and get busy applying those lessons learned. So without further ado here is the full list of speakers is here and links to their presentations are here and videos of all the presentations can be found here. Thank you Mr. Steve Blank-the current guru I’m learning from.

I’ll fill you in on how some customer discovery and hypothesis testing went tomorrow night. Stay tuned same bat time, same bat channel.

Startups Lessons Learned:Case Studies

April 26th, 2010
There were 3 successive case studies presented at the Startup Lessons Learned Conference last Friday. The first was Ash Maurya of WiredReach regarding Continuous Deployment. He started off with a reference back to lean principles. Waste is any activity that doesn’t add value for the customer or in this case customer learning. He then made a rather counter-intuitive statement: “Product development gets in the way of customer learning.” he then transitioned by explaining that continuous deployment shortens the development cycle reducing the waste and allowing the customer to do what they care about.

He described what that looks like. They release several times a day instead of every 2 weeks and it is usually 25 lines of code instead of in the thousands. They took some time on the front end to set up some test automation and then spend their time fixing everything else once it is launched so they’re working only on the things that matter to the customer. They transitioned into this methodology by starting with non-user changes first.

He encouraged people that were going to embark on this type of process to identify the top 3 customer problems that you want to solve, use the 5 whys to analyze the root cause or customer need, and validate each feature by collecting qualitative data directly with the customer by calling or emailing them. Any additional feature rquests should be a pull from more than 1 customer.

The next case study was presented by Farb Nivi of Grockit fame. (He named it after a term in Heinlein’s Stranger in a Strange Land. Grok means “to understand profoundly and intuitively.”) He has used agile software development to build his social media site for students that need help studying. His two main tools/methods he used was Pivotal Tracker as a narrative not a to do list. Software devlopment is a human endeavor and paired coders (1 coding the other checking). He also cautioned that while agile software development is an engine to move your business faster but you still need to steer according to your customers need.

The 3rd case study was presented by a team from IMVU trying to answer the question whether the lean approach can scale. They found initial success by allowing anyone to make changes or add features whenever they wanted as long as they were focusing on meeting customers request. However as they scaled or grew it created technical debt. Meaning a lot of features took up resources and had to be maintained but didn’t necessarily increase revenues or ensure ownership (leftover projects). They then described what they did to try to eliminate that debt through team organization focused on different things and finally settled on 3 teams-product, monetization, and keeping things running. The owner of a product/feature decide where the resources will be used but the team decided how.

Even though they were able to show an increase in revenuesthe whole process sounded like a lot of meetings. Their lessons learned was that when you get large enough you need to look for big returns instead of changing every request. And that it required a cultural shift from independent changes to accountability (ship it or kill it for the best of the company). Still a work in progress but I was impressed with their culture/assumption that their people are doing their best. It allows them to continue to be agile and being okay with short-term failure in the name of learning. That can be tough to do.

Show Me The Money!

October 21st, 2009

Jerry Maguire, played by Tom Cruise (whose real name is Thomas Mapother IV-according to a not-so-recent game of Balderdash), made the declaration “Show me the Money!” trying to appease and retain a professional athlete as a client.  His eventual client wanted to be sure that his agent would represent his interests with as much fervor as he personally would.

Can you feel it?

Can you feel it?

As a website or blog, regardless of how altruistic your motives, you will eventually face the question of how you pay for the time and resources you’re putting into maintaining the site for your audience or customers. You’ll want to be shown the money. You’ll be tempted to plaster advertising all over your site and become an affiliate for as many different companies as you possibly can.  However, in doing so may eventually drive away the audience that you’ve so carefully cultivated.

So how do you advertise without annoying your audience? Follow Jerry Maguire’s example. Align your interests with your clients or in this case, readers. Select only advertising that is relevant and helpful to the group that is likely to come to your site.  It can be a tough balance to achieve but maintains the meaning or purpose without selling out to the almighty dollar/euro/yen or whatever is the current dominant currency.

Bonus question: Can anyone name the professional athelete Mr. Mapother was talking to without using the internet?

Artificial barriers – a doomed business model

August 27th, 2009

A recent article over at TechCrunch details an unholy alliance between Blockbuster and the movie industry. Their idea, aimed squarely at relative newcomers such as Netflix and Redbox, is to limit new release rentals to physical rental stores for the first 30 days. As seen by skimming the (abundant) user commentary, it is easy to see the discontent with such a brazen action completely devoid of any benefit to the consumer. It is hard to imagine any other objective in this strategy than Blockbuster’s attempt at propping up a failing business model by taking away existing customer choice. I’d be curious to hear of any examples where such a business strategy has resulted in an improved outlook for a company. I certainly hope that there is some correlation between value provided to a customer and business prosperity. I firmly believe that the best long term strategy in any business is to provide ever increasing value to your customers and adapting to new business challenges by evolving in directions that continue to benefit your customer base.

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