Is it Good Enough?

This phase of the Customer Discovery Process tests whether the solution to the problem you identified gets customers enthusiastic enough to buy or use the product. If your potential customers are not really fired up about your solution selling it will be a nightmare. Figuring this out now will save you a ton of headache later!

Coffee

This is part 7 of our Lean Innovation Series.

This phase consists of 5 steps all used to determine if this business is worth pursuing. As always, keep excellent records for review at the end of this phase.

  1. Pivot or Proceed – Based on what you learned in the previous phase by asking if potential customers cared enough about the problem, should you and your team push forward or “pivot” and make changes to your value proposition? This is an incredibly difficult decision, but one that you and your team are now ready to make with the data you need to make an “eyes wide open” decision.
  2. Create the Solution Presentation / High Fidelity MVP – Those in the physical channel create their pitch for the solution to the problem tested in the previous phase. The digital channel team puts more development time, energy and money into the Minimum Viable Product. This is still not the finished product or a full scale launch, but a limited invite to watch how your customers experience your product.
  3. Test the Product / Measure Customer Behavior – Those in the physical channel will go back to the 50 or so potential customers they found in the last phase while adding at least 10 more. After presenting your solution, begin testing for price points. Also note the titles of your subjects. Are you talking to buyers? What level of buyer is the most productive to speak with? You are gathering data for your full scale launch, so gather and document everything you can. In the web channel measure not only purchases but also engagement. How long are customers spending on the site? How often do they come back? Who are the most enthusiastic users?
  4. Update your Business Model Canvas – Again, a chance to update your Business Model Canvas based on what you learned in steps 1 through 3. Your focus in this “tune up” to your canvas should be totally focused on customers’ enthusiasm for your product or service. Measureable results from your experiments are your evidence, not opinions. A lukewarm response from potential customers is a serious cause for concern.
  5. Identify your Advisory Board – Founders should always be prospecting for advisory board members that have specific expertise or connections that the new organization will need. Your board does not have to be formal at this time, just someone who will pour into you and your team over lunch or dinner. Focus on getting advisors from key customer segments and someone who has experience launching a business similar to yours.

There is only one remaining check of your business model before your new organization is ready to move to Customer Validation. We’ll give you the steps to that process in our next post.

If you’d like more details than I could put into this blog pick up a copy of “The Startup Owner’s Manual” by Steve Blank and Bob Dorf.

Thank you for being a part of our values driven community!

Image courtesy of http://commons.wikimedia.org/wiki/File:Coffee_Cupping-2.jpg.

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