Differences
This shows you the differences between two versions of the page.
| Both sides previous revision Previous revision Next revision | Previous revision | ||
| arch:efficiency_and_effectiveness_of_different_methods_in_customer_development [2021/10/17 13:18] – dagoncharov_2 | arch:efficiency_and_effectiveness_of_different_methods_in_customer_development [2026/08/29 07:59] (current) – external edit 127.0.0.1 | ||
|---|---|---|---|
| Line 1: | Line 1: | ||
| By Dmitry Goncharov (dagoncharov_2@edu.hse.ru) | By Dmitry Goncharov (dagoncharov_2@edu.hse.ru) | ||
| - | Efficiency and effectiveness of different methods in customer development | + | ====== |
| - | Customer development is a formal methodology for building startups and new corporate ventures. It is one of the three parts that make up a lean startup concept which is composed of business model design, customer development and agile engineering. In general, customer development is a four-step framework, originally identified by Steve Blank, that is used to determine whether or not a product fulfills needs of the customers. | + | ====== Introduction ====== |
| + | |||
| + | Customer development is a formal methodology for building startups and new corporate ventures. It is one of the three parts that make up a lean startup concept which is composed of business model design, customer development and agile engineering. In general, customer development is a four-step framework, originally identified by Steve Blank, that is used to determine whether or not a product fulfills needs of the customers. | ||
| The framework consists of four distinct but connected steps [1]: | The framework consists of four distinct but connected steps [1]: | ||
| Line 34: | Line 36: | ||
| That structure seems very simple and complex at the same time. Of course, the steps are clear, but how to work through them? Where should I start? What are the most efficient and effective methods in existence and how to implement them? These are the questions which immediately come to mind when you look at the steps. In this essay I would like to develop relatively short and clear plan of different methods which will help to realize every step of the lean customer development structure. Furthermore, | That structure seems very simple and complex at the same time. Of course, the steps are clear, but how to work through them? Where should I start? What are the most efficient and effective methods in existence and how to implement them? These are the questions which immediately come to mind when you look at the steps. In this essay I would like to develop relatively short and clear plan of different methods which will help to realize every step of the lean customer development structure. Furthermore, | ||
| + | |||
| + | ====== Plan of using different methods in customer development ====== | ||
| To do the first step, you should perform a method which includes three exercises. First, you should identify your assumptions. As well as your ideas about the product you have beliefs about how your potential customer acts, thinks and makes decisions. This exercise should be done whether you are making a startup or adding a new feature to an existing product. However, you could feel completely different in these two cases. If it is a startup you may start to hesitate and think that all the assumptions are just mad guesses and vice versa be confident if you are working on the new project at the enterprise. To tell the truth, it doesn’t matter because the main goal here is to just identify assumptions to thoroughly validate them afterwards. It’s not important that you’re right, it is important that you write down all your assumptions. As soon as you do that it will become clearer what other beliefs you hold about the product [3]. This will play a key role and will be very effective for finding customers and asking the right questions because at the end you will collect customers’ evidence which will validate or invalidate them. | To do the first step, you should perform a method which includes three exercises. First, you should identify your assumptions. As well as your ideas about the product you have beliefs about how your potential customer acts, thinks and makes decisions. This exercise should be done whether you are making a startup or adding a new feature to an existing product. However, you could feel completely different in these two cases. If it is a startup you may start to hesitate and think that all the assumptions are just mad guesses and vice versa be confident if you are working on the new project at the enterprise. To tell the truth, it doesn’t matter because the main goal here is to just identify assumptions to thoroughly validate them afterwards. It’s not important that you’re right, it is important that you write down all your assumptions. As soon as you do that it will become clearer what other beliefs you hold about the product [3]. This will play a key role and will be very effective for finding customers and asking the right questions because at the end you will collect customers’ evidence which will validate or invalidate them. | ||
| Line 54: | Line 58: | ||
| At this stage, the main problem is that most people have no idea how and where to find the right customers to talk to, especially when they are making a startup and don’t have existing customers. In fact, there are vast variety of ways how to find them. First of all, you should rely on your friends or just familiar people. One of the most important things here is to define people, which are somehow relevant to the problem you’re trying to solve. That will significantly decrease the number of unnecessary interviews and as a result you won’t waste your time. Moreover, you may and should ask your connections to introduce you to their friends and familiar people, who are believed to have the same problem which you want to solve. That will greatly expand the number of potential customers. However, in most cases this is not enough, and you need other ways to find relevant people. If you are in that case, you should use various internet forums and tools such as LinkedIn, Quora etc. [4]. Furthermore, | At this stage, the main problem is that most people have no idea how and where to find the right customers to talk to, especially when they are making a startup and don’t have existing customers. In fact, there are vast variety of ways how to find them. First of all, you should rely on your friends or just familiar people. One of the most important things here is to define people, which are somehow relevant to the problem you’re trying to solve. That will significantly decrease the number of unnecessary interviews and as a result you won’t waste your time. Moreover, you may and should ask your connections to introduce you to their friends and familiar people, who are believed to have the same problem which you want to solve. That will greatly expand the number of potential customers. However, in most cases this is not enough, and you need other ways to find relevant people. If you are in that case, you should use various internet forums and tools such as LinkedIn, Quora etc. [4]. Furthermore, | ||
| - | + | ||
| Ones you found your target customers, you should realize what questions to ask to detect the most valuable and efficient insights. There are five basic customer development questions [2]: | Ones you found your target customers, you should realize what questions to ask to detect the most valuable and efficient insights. There are five basic customer development questions [2]: | ||
| - | 1. Tell me about how you do ________ | + | 1. Tell me about how you do //////// |
| - | 2. Do you use any [tools/ | + | 2. Do you use any [tools/ |
| 3. If you could wave a magic wand and be able to do anything that you can’t do today, what would it be? Don’t worry about whether it’s possible, just anything. | 3. If you could wave a magic wand and be able to do anything that you can’t do today, what would it be? Don’t worry about whether it’s possible, just anything. | ||
| - | 4. Last time you did ________, what were you doing right before you got started? Once you finished, what did you do afterwards? | + | 4. Last time you did ////////, what were you doing right before you got started? Once you finished, what did you do afterwards? |
| - | 5. Is there anything else about _______ | + | 5. Is there anything else about //// |
| These questions don’t change much from project to project. You can add just few custom questions sometimes and slightly change basic ones to adapt them for the product. The second important point here is that during the conversation, | These questions don’t change much from project to project. You can add just few custom questions sometimes and slightly change basic ones to adapt them for the product. The second important point here is that during the conversation, | ||
| Line 82: | Line 86: | ||
| In various situations, there might be different questions in priority. You should identify what information is most important in your case in order to choose and create the right and the most relevant type of the MVP [6]. | In various situations, there might be different questions in priority. You should identify what information is most important in your case in order to choose and create the right and the most relevant type of the MVP [6]. | ||
| + | |||
| + | ====== Conclusion ====== | ||
| So, after getting the answers on these four questions you either have made the perspective product or should fix something and return to the stage where you realized you had made some mistakes. That cycle could be infinite because you always can understand your failures and start from the beginning, but I hope that won’t happen to you. To sum up, the work-through plan of realizing the lean customer development steps was developed. It is full of different methods and all of them invest their effectiveness in the ultimate success of the product. There are way more sub methods that are also very efficient, but as I tried to make this plan relatively short, I skipped them and provided a heart of the plan. You will for sure need a lot of additional information to greatly perform the customer development of your product and I tried to do my best to determine what more you need to learn. | So, after getting the answers on these four questions you either have made the perspective product or should fix something and return to the stage where you realized you had made some mistakes. That cycle could be infinite because you always can understand your failures and start from the beginning, but I hope that won’t happen to you. To sum up, the work-through plan of realizing the lean customer development steps was developed. It is full of different methods and all of them invest their effectiveness in the ultimate success of the product. There are way more sub methods that are also very efficient, but as I tried to make this plan relatively short, I skipped them and provided a heart of the plan. You will for sure need a lot of additional information to greatly perform the customer development of your product and I tried to do my best to determine what more you need to learn. | ||
| + | ====== References ====== | ||
| + | 1. Steve Blank (2021). The Four Steps to the Epiphany: Successful Strategies for Products that Win. [[https:// | ||
| - | Reference list. | + | 2. Cindy Alvarez (2014). Lean Customer Development: |
| - | + | ||
| - | 1. Steve Blank (2021). The Four Steps to the Epiphany: Successful Strategies for Products that Win. https:// | + | |
| - | + | ||
| - | 2. Cindy Alvarez (2014). Lean Customer Development: | + | |
| - | + | ||
| - | 3. Steve Blank (2010). No Business Plan Survives First Contact With A Customer – The 5.2 billion dollar mistake. Article. | + | |
| - | 4. Mark Horoszowski | + | 3. Steve Blank (2010). No Business Plan Survives First Contact With A Customer – The 5.2 billion dollar mistake. Article. [[https://steveblank.com/2010/11/01/no-business-plan-survives-first-contact-with-a-customer-–-the-5-2-billion-dollar-mistake/ |
| - | 5. Tony McCaffrey | + | 4. Mark Horoszowski |
| - | 6. Startup Growth | + | 5. Tony McCaffrey |
| + | 6. Startup Growth (2020). The Ultimate Guide to Minimum Viable Products. [[https:// | ||