Cleantech Open 071611
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This document discusses customer development and business models for startups. It defines different types of startups, including small businesses, social startups, sustaining/disruptive innovation within large companies, and scalable startups. The key aspects of a business model are defined using the business model canvas framework. Customer development is presented as the process startups use to search for an unknown business model, involving customer discovery, validation, and pivoting if needed based on feedback. The minimum viable product and agile development are discussed as ways to test hypotheses. An example pivot from a robotic weeding startup is provided.
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Cleantech Open 071611
- 1. Customer Development and the Business ModelJuly 16, 2011
- 2. Welcome to Customer DevelopmentSteve BlankStanford - School of EngineeringU.C. Berkeley - Haas School Of Businesswww.steveblank.comTwitter: sgblank
- 3. I Write a Blog www.steveblank.com
- 4. This Talk is Based OnBusiness Model GenerationFour Steps to the EpiphanyLean Startup
- 5. First -What’s A Startup?Five Types of Startups
- 6. Small BusinessStartupSmall Business StartupsServe known customer with known product
- 7. Feed the familySmall BusinessStartupExit Criteria Business Model found- Profitable business Existing team< $1M in revenueSmall Business Startupsknown customer known product
- 8. Feed the familySmall BusinessStartup- Business Model found- Profitable business Existing team< $10M in revenueSmall Business Startups5.7 million small businesses in the U.S. <500 employees
- 9. 99.7% of all companies
- 10. ~ 50% of total U.S. workershttp://www.sba.gov/advo/stats/sbfaq.pdf
- 11. Large Non-ProfitSocial StartupSocial Entrepreneurship StartupsSolve pressing social problems
- 13. Social Innovation: New StratagiesLarge Company Sustaining InnovationSustaining InnovationTransitionScalableStartupLarge Company Existing Market / Known customer
- 14. Known product feature needsLarge Company Disruptive InnovationNew DivisionTransitionLarge CompanyDisruptive InnovationNew Market
- 15. New tech, customers, channelsLarge Company Disruptive InnovationNew DivisionTransitionLarge CompanyDisruptive InnovationBuild
- 16. Acquire - IP- Talent - Product - Customers - Business
- 17. ScalableStartupLarge CompanyScalable StartupSearchGoal is to solve for: unknown customer and unknown features
- 18. ExecuteSearchScalableStartupLarge CompanyExit Criteria Business model found
- 19. Total Available Market > $500m -$1B
- 20. Can grow to $100m/yearScalable Startup
- 21. ScalableStartupLarge CompanyTotal Available Market > $500m
- 22. Company can grow to $100m/year
- 23. Business model found
- 24. Focused on execution and process
- 25. Typically requires “risk capital”Scalable StartupExecuteSearch In contrast a scalable startup is designed to grow big
- 26. Typically needs risk capital
- 27. What Silicon Valley means when they say “Startup”ScalableStartupLarge CompanyExit Criteria Business model found
- 28. Total Available Market > $500m -$1B
- 29. Can grow to $100m/yearScalable StartupExecuteSearch VC-backed scalable startups:
- 30. 13% of all public companies
- 31. 4% of total sales of all U.S. public companies ~$1 trillionSource: Josh Lerner, Harvard: VC and Innovation in Energey
- 32. Very Different Startup GoalsSmall BusinessStartup- Business Model found- Profitable business Existing team< $10MScalableStartupLarge Company Total Available Market > $500m
- 33. Company can grow to $100m/year
- 34. Business model found
- 35. Focused on execution and process
- 36. Typically requires “risk capital”Venture Firms Invest in Scalable StartupsSmall BusinessStartupScalableStartupLarge Company
- 37. Buyable StartupSearchSellScalableStartup$5 to 50M AcquisitionGoal is to solve for: Internet and Mobile Apps
- 38. Buyable StartupSearchSellScalableStartup$5 to 50M AcquisitionGoal is to solve for: Internet and Mobile AppsSell to larger company
- 40. i.e. Product/Market fit- Repeatable sales model- Managers hiredWhat’s A Startup?Search ExecuteA Startup is a temporary organization used to search for a repeatable and scalable business model
- 42. What You and I Saw
- 44. What You and I Saw
- 45. What Van Gogh Saw
- 46. Founders See Things Others Don’t
- 47. Founders See Things Others Don’tFounders are Artists.Actually They are Composers.They Create Something From Nothing
- 48. Founders See Things Others Don’tThey Build a Company By Convincing Others To See What They Do
- 49. Founders See Things Others Don’tThe Early Employees Who Join Them Are the Performers
- 50. I Have a Vision
- 51. I Know What Needs to Be Done
- 52. Lets Launch a New Product!
- 53. Five Ways Founders Fail
- 54. #1I Know Who The Customer Is
- 55. #2I Know Exactly the Product They Need
- 56. #3I Know the Problem They Have
- 57. #4We Can Fix It After We Ship It All
- 58. #5All I Need to Do is Execute the Plan
- 59. Product Introduction ModelConcept/Seed RoundProduct Dev.Alpha/Beta TestLaunch/1st Ship
- 60. Product Introduction ModelThe Leading Cause of Startup DeathConcept/Seed RoundProduct Dev.Alpha/Beta TestLaunch/1st Ship
- 61. Product Introduction Model:Two Implicit AssumptionsCustomer Problem: knownConcept/Seed RoundProduct Dev.Alpha/Beta TestLaunch/1st Ship Product Features: known
- 62. Tradition – Hire MarketingConcept/Seed RoundProduct Dev.Alpha/Beta TestLaunch/1st Ship- Create Demand- Launch Event- “Branding”- Hire PR Agency- Early Buzz Create Marcom Materials- Create PositioningMarketing
- 63. Tradition – Hire SalesConcept/Seed RoundProduct Dev.Alpha/Beta TestLaunch/1st Ship- Create Demand- Launch Event- “Branding”- Hire PR Agency- Early Buzz Create Marcom Materials- Create PositioningMarketing Build Sales Organization
- 64. Hire Sales VP
- 65. Hire 1st Sales StaffSales
- 66. Tradition – Hire Bus DevelopmentConceptProduct Dev.Alpha/Beta TestLaunch/1st Ship- Create Demand- Launch Event- “Branding”- Hire PR Agency- Early Buzz Create Marcom Materials- Create PositioningMarketing Build Sales Channel / Distribution
- 67. Hire Sales VP
- 68. Pick distribution ChannelSalesBusiness Development Hire First Bus Dev
- 69. Do deals for FCSTradition – Hire EngineeringConceptProduct Dev.Alpha/Beta TestLaunch/1st Ship- Create Demand- Launch Event- “Branding”- Hire PR Agency- Early Buzz Create Marcom Materials- Create PositioningMarketing Build Sales Channel / Distribution
- 70. Hire Sales VP
- 71. Pick distribution ChannelSalesBusiness Development Hire First Bus Dev
- 72. Do deals for FCSEngineering Write MRD
- 73. Waterfall
- 74. Q/A
- 75. Tech PubsNo Business Plan survives first contact with customers
- 76. Startups Are Not Smaller Versions of Large Companies
- 77. Startups Are Not Smaller Versions of Large CompaniesLarge Companies Execute Known Business Models
- 78. Startups Are Not Smaller Versions of Large CompaniesStartups Search for Unknown Business Models
- 79. So Search for a Business Model
- 80. The Business Model:Any company can be described in 9 building blocks
- 81. CUSTOMER SEGMENTSwhich customers and users are you serving? which jobs do they really want to get done?
- 82. VALUE PROPOSITIONSwhat are you offering them? what is that getting done for them? do they care?
- 83. CHANNELShow does each customer segment want to be reached? through which interaction points?
- 84. CUSTOMER RELATIONSHIPSwhat relationships are you establishing with each segment? personal? automated? acquisitive? retentive?
- 85. REVENUE STREAMSwhat are customers really willing to pay for? how? are you generating transactional or recurring revenues?
- 86. KEY RESOURCESwhich resources underpin your business model? which assets are essential?
- 87. KEY ACTIVITIESwhich activities do you need to perform well in your business model? what is crucial?59
- 88. KEY PARTNERSwhich partners and suppliers leverage your model? who do you need to rely on?
- 89. COST STRUCTUREwhat is the resulting cost structure? which key elements drive your costs?
- 90. value propositioncustomer relationshipskey activitiescustomer segmentskey partnerscost structurerevenue streamskey resourceschannels62images by JAM
- 91. sketch out your business model
- 94. How Do Startups Search For A Business Model? The Search isCustomer Development
- 95. The Implementation isAgile Development
- 96. The Sum is the Lean StartupCustomer DevelopmentThe founders^Get Out of the Building
- 97. Customer DevelopmentThe Search For the Business ModelCompanyBuildingCustomerDiscoveryCustomerValidationCustomer CreationPivot
- 98. Customer DiscoveryCustomerDiscoveryCustomerValidationCompanyBuildingCustomerCreationStop selling, start listeningTest your hypothesesContinuous DiscoveryDone by founders
- 100. Market Type
- 101. CompetitionTurning Hypotheses to Facts
- 103. Customer
- 104. User
- 105. PayerTest Hypotheses:ChannelTest Hypotheses:Demand CreationTest Hypotheses:Problem
- 106. Customer
- 107. User
- 109. Market Type
- 111. (Customer)
- 112. (Problem)Test Hypotheses:ChannelTest Hypotheses:Pricing Model / PricingTest Hypotheses:Size of Opportunity/Market
- 113. Validate Business ModelTest Hypotheses:Demand CreationTest Hypotheses:Problem
- 114. Customer
- 115. User
- 116. PayerAgile DevelopmentTest Hypotheses:Product
- 117. Market Type
- 119. (Customer)
- 120. (Problem)Customer Development TeamTest Hypotheses:ChannelTest Hypotheses:Pricing Model / PricingTest Hypotheses:Size of Opportunity/Market
- 121. Validate Business Model
- 122. The Minimum Viable Product (MVP) Smallest feature set that gets you the most …orders, learning, feedback, failure…
- 123. MVP + Customer are the first two you need to nailTesting the MVPSmoke testing with landing pages using AdWordsIn-product split-testingPrototypes (particularly for hardware)Removing featuresContinued customer discovery and validationSurveysInterviews
- 124. Testing the MVP (Web Example)Can you get customers to pay for a product that doesn’t yet exist (or barely does)?Interview customers to make sure they have a matching core problemSet up web site landing page to test for conversionSee what offers are required to get customers to use the product (e.g. prizes, payment)Use problem definition as described by customers to identify key word list – plug into Google search traffic estimator - high traffic means there is problem awarenessDrive traffic to site using Google search and see how deep into a registration process customers are willing to go through
- 125. Testing the MVP (Non-Web)Can you get customers to pay for a product that doesn’t yet exist (or barely does)?Interview customers to make sure they have a matching core problemSet up web site landing page to test for conversionSet up a Lighthouse Customer Program where potential customers pay to get early access to product prototypes
- 126. The PivotThe heart of Customer Development
- 128. Fast, agile and opportunisticHow Does This Really Work?Stanford Lean LaunchPad Class
- 129. How Does This Really Work?Stanford Lean LaunchPad Class8 Weeks From an Idea to a Business
- 130. Pivot ExampleRobotic WeedingTalked 75 Customers in 8 Weeks
- 132. 20 interviews, 6 site visits…We got OUR Boots dirtyWeedingVisited two farms in Salinas Valley to better understand problemInterviewed:Bolthouse Farms, Large Agri-Industry in Bakersfield
- 133. White Farms, Large Peanut farmer in Georgia
- 134. REFCO Farms, large grower in Salinas Valley
- 135. Rincon Farms, large grower in Salinas Valley
- 136. Small Organic Corn/Soy grower in Nebraska
- 137. Heirloom Organics, small owner/operator, Santa Cruz Mts
- 138. Two small organic farmers at farmers market
- 139. Ag Services of Salinas, Fertilizer applicatorMowingInterviewed:Golf: Stanford Golf course
- 140. Parks: Stanford Grounds Supervisor, head of maintenance and lead operator (has crew of 6)
- 141. Toro dealer (large mower manufacturer)
- 142. User of back-yard mowing system
- 143. Maintenance Services for City of Los Altos
- 144. Colony Landscaping (Mowing service for stadiums)Confidential
- 145. Business Plan Autonomous Vehicles for Mowing & WeedingDealers sell, installs and supports customerCo. trains dealers, supports dealers- Innovation- Customer Education- Dealer trainingMowing- Owners of public or commercially used green spaces (e.g. golf courses)- Landscaping service providerWeeding- Farmers with manual weeding operationsWe reduce operating cost- Labor reduction- Better utilization of assets (eg mow or weed at nights)- Improved performance (less rework, food safety)- Dealers (Mowing and Ag)- Vehicle OEMs (John Deere, Toro, Jacobsen, etc)- Research labs- Mowing Dealers- Ag DealersEngineers on Autonomous vehicles, GPS, path-planningDealer discount COGS seek a 50-60% Gross MarginHeavy R&D investment Asset saleOur revenue stream derives from selling the equipment
- 146. Autonomous vehiclesWEEDINGDealers sell, installs and supports customerCo. trains dealers, supports dealers- Innovation- Customer Education- Dealer training- Low density vegetable growers- High density vegetable growers- Thinning operations- Conventional vegetablesWe reduce operating cost- Labor reduction (100 to 1)- Reduced risk of contamination- Mitigate labor availability concerns- Ag Dealers- Ag Service providers- Research labs- Ag Dealers- Ag Service providersEngineers on Machine VisionTwo problems:- Identification- EliminationDealer discount COGS seek a 50-60% Gross MarginHeavy R&D investment Asset saleOur revenue stream derives from selling the equipment
- 147. 1 Week – 1 CarrotBotConfidential
- 148. The Business Plan Canvas UpdatedTechnology Design
- 149. Marketing
- 150. Demo and customer feedback
- 151. Farming conventions.
- 152. Demo, demo, and demo!!
- 154. Organic Farmers
- 156. Conventional Farmers
- 157. Cost Reduction
- 158. Remove labor force pains
- 160. Research Labs
- 162. Distribution Network
- 163. Service Providers
- 164. IP – Patents
- 166. Robust Technology
- 167. Dealers
- 168. Direct Service
- 169. Indirect Service
- 170. … then Dealers
- 171. Asset Sale
- 172. Direct Service with equipment rental
- 173. … then Asset SaleValue-Driven
- 174. The Business Plan Canvas UpdatedTechnology Design
- 175. Marketing
- 176. Demo and customer feedback
- 177. Farming conventions.
- 178. Demo, demo, and demo!!
- 184. Cost Reduction
- 185. Remove labor force pains
- 187. Research Labs
- 189. Distribution Network
- 190. Service Providers
- 191. IP – Patents
- 193. Robust Technology
- 194. Direct Service
- 195. Indirect Service
- 196. … then Dealers
- 197. Direct Service with equipment rental
- 198. ($1,500/d; 120d/yr )
- 201. World Ag Expo interviews:the need is real and wide spread10+ interviews at showEveryone confirmed the needRobocrop, UK based, crude competitor sells for $171 KRevenue StreamMid to small growers prefer a serviceLarge growers prefer to buy, but OK with service until technology is provenCharging for labor cost saved is OK, as we provide other benefits (food safety, labor availability)Confidential
- 202. The Business Plan Canvas UpdatedTechnology Design
- 203. Marketing
- 204. Demo and customer feedback
- 205. Farming conventions.
- 206. Demo, demo, and demo!!
- 212. Research Labs
- 214. Distribution Network
- 215. Service Providers
- 216. 2 or 3 Key Farms
- 217. Cost Reduction
- 218. Remove labor force pains
- 220. IP – Patents
- 222. Robust Technology
- 223. Direct Service
- 224. Indirect Service
- 225. … then Dealers
- 226. Direct Service with equipment rental
- 228. High density: $6,000/dValue-Driven R&D
- 229. Bill of Materials
- 230. Training & Service
- 231. SalesAutonomous weeding - FinalDirect- Provide high quality service at competitive price- Innovation- Customer Education- Dealer training- Low density vegetable growers- High density vegetable growers- Thinning operations- Conventional vegetablesWe reduce operating cost- Labor reduction (100 to 1)- Reduced risk of contamination- Mitigate labor availability concerns- Ag Service providers- Research Institutes (eg UC Davis, Laser Zentrum Hannover)- 3-4 key farmsDirect - Alliance with service providers- Eventually sell through dealersEngineers on Machine VisionTwo problems:- Identification- EliminationCosts for service provisionCOGS seek a 50-60% Gross MarginHeavy R&D investment Service provision- Charge by the acre with modifier according to weed density - Eventually move to asset sale
- 232. Personal Libraries
- 233. Insight: No more bookshelveseBooks+150% YoY ‘10Printed Books -20% YoY ‘10
- 234. Version 1.0: Personal Libraries
- 235. Original Idea: Personal Digital LibrariesImport, organize and share thousands of digital papers
- 236. something-something-something.comOriginal ideaInvincible Business Model: Version 1.0SHORT TERMResearchersLawyersScientists LONG TERMAvid book readersProfessionals FB/TW posts from users you knowCompany blog, FB, TW, support forumsImport, organize and share thousands of papersTargeted marketingProduct developmentConstant iteration & testingLibraries, Universities, Research CentersBloggers and media targeting customer segmentAcademic Database providersAffiliate programSEO/SEM/SMIE/FF/Chrome App StoresDevelopersMarketersAffiliate program feesLicensingSubscription feesAd revenueAWS InfrastructureSEMEng & Marketing OpEx
- 237. Here’s What We DidVersion 1.0: Personal Libraries
- 238. Got out of the building
- 239. Got out of the building100+ InterviewsProfessors, Litigators, IP lawyers, Post-docs, PhD researchers, Engineering Students, Law Students…
- 240. Got out of the building100+ Interviews
- 241. Extensive SurveysGot out of the building100+ Interviews
- 242. Extensive Surveys
- 243. 33,000+ AdwordsGot out of the building100+ Interviews
- 244. Extensive Surveys
- 245. 33,000+ Adwords
- 246. Compete ReviewGot out of the building100+ Interviews
- 247. Extensive Surveys
- 248. 33,000+ Adwords
- 249. Compete Review
- 250. Market SizingGot out of the building100+ Interviews
- 251. Extensive Surveys
- 252. 33,000+ Adwords
- 253. Compete Review
- 254. Market Sizing
- 255. 50 bloggersGot out of the building100+ Interviews
- 256. Extensive Surveys
- 257. 33,000+ Adwords
- 258. Compete Review
- 259. Market Sizing
- 260. 50 bloggers
- 261. 6 Social NetworksGot out of the building100+ Interviews
- 262. Extensive Surveys
- 263. 33,000+ Adwords
- 264. Compete Review
- 265. Market Sizing
- 266. 50 bloggers
- 267. 6 Social Networks
- 268. Usability TestsGot out of the building100+ Interviews
- 269. Extensive Surveys
- 270. 33,000+ Adwords
- 271. Compete Review
- 272. Market Sizing
- 273. 50 bloggers
- 274. 6 Social Networks
- 275. Usability Tests
- 276. Rapid IterationHere’s What We FoundVersion 1.0: Personal Libraries
- 277. Here's what we found: Version 1.0A great business if we had more users…GOODSubscriptions RockHere's what we found: Version 1.0Shorter pages raise conversions 80%GOODSubscriptions Rock
- 278. Pipelines OptimizeHere's what we found: Version 1.0Sites will feature your serviceGOODSubscriptions Rock
- 279. Pipelines Optimize
- 280. The Web ListensHere's what we found: Version 1.0GOODSubscriptions Rock
- 281. Pipelines Optimize
- 282. The Web ListensBADAcademics = CheapTeaching team saw pattern in our data
- 283. Run away from this customer as fast as possible.
- 284. Run away from this customer as fast as possible. They don’t want to spend money and will incur infinite support and infinite cost.
- 285. Here's what we found: Version 1.0Working for peanuts, and hitting wild product success leads to economic failureGOODSubscriptions Rock
- 286. Pipelines Optimize
- 287. The Web ListensBADAcademics = Cheap
- 288. Negative MarginsHere's what we found: Version 1.0GOODSubscriptions Rock
- 289. Pipelines Optimize
- 290. The Web ListensBADAcademics = Cheap
- 291. Negative Margins
- 292. ECM = BoringNo adjacent pivots worked for the team
- 293. Version 2.0: Trusted Advice
- 294. something-something-something.comOriginal ideaInvincible Business Model: Version 2.0Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)FB/TW posts from users you knowCompany blog, FB, TW accountsDiscover online goods recommended by friends at the lowest possible price from trusted vendorsDeveloping trusted advice and advisorsWeb marketing Affiliate partnershipsConstant iteration & testingBloggers and Media targeting customer segmentRetail marketing partnersIE/FF/Chrome teamsAffiliate Program ProvidersAffiliate programSEO/SEM/SMIE/FF/Chrome App StoresDevelopersMarketersContent LibraryInstall baseReadership baseAffiliate program feesLicensingSubscription feesAd revenueAWS InfrastructureSEMEng & Marketing OpEx
- 295. New Hypotheses
- 296. Here’s What We DidVersion 2.0: Trusted Advice
- 297. Got out of the building, again40+ InterviewsGot out of the building, again40+ Interviews
- 298. Extensive SurveysGot out of the building, again40+ Interviews
- 299. Extensive Surveys
- 300. Landing Page TestsLanding pages tested on affluent, career aged professionals, approximately 70/30 male/female, N=800+
- 301. Got out of the building, again40+ Interviews
- 302. Extensive Surveys
- 303. Landing Page Tests
- 304. Market ResearchGot out of the building, again40+ Interviews
- 305. Extensive Surveys
- 306. Landing Page Tests
- 307. Market Research
- 308. Compete ResearchGot out of the building, again40+ Interviews
- 309. Extensive Surveys
- 310. Landing Page Tests
- 311. Market Research
- 312. Compete Research
- 313. Revenue AnalysisGot out of the building, again40+ Interviews
- 314. Extensive Surveys
- 315. Landing Page Tests
- 316. Market Research
- 317. Compete Research
- 318. Revenue Analysis
- 320. Got out of the building, again40+ Interviews
- 321. Extensive Surveys
- 322. Landing Page Tests
- 323. Market Research
- 324. Compete Research
- 325. Revenue Analysis
- 326. Two Prototypes
- 327. Refined PersonasCustomer Segment: Professional-class consumers shopping frequently online Pat the ProfessionalUpwardly mobile professional (some Grad Students)Salary: $40,000 – 150,000/yearFinance, Consulting, PR, MarketingFollows fashion/technology trendsSpends $1-15K on discretionary items onlinePurchased online in last 30 daysDemographicsMale/female, aged 18-35
- 328. Minimum bachelors from expensive schoolTraits:Ideas from blogs & shopping websites
- 329. Values celebrity trends & friends’ opinions
- 330. Wants high ticket items at lowest price
- 331. Event-driven shopper—new release or saleMotivationCraves new products
- 332. Hates tedious work
- 333. Identifies as influencer among friends
- 334. Fears being cheated onlineBehaviorSpends 5 hour+ monthly hearing about products
- 335. Shares online and in person about products he lovesBudget$2-10K+/year in discretionary online purchases“The XXX is awesome, I really want one. I know I just bought the YYY, but it’s probably time to upgrade.” ~5.9M “Pat the Professionals” in USDrawn from top 1/3 of 17.8M frequent online shoppers17.8M based on 40.2M Professionals (2008 Census) * 0.762 US Internet Penetration (Nielsen 2010Q1) * 0.58 consumers shopping online in last month (Nielsen 2010Q1) Online Recommendation Market Opportunity (conservative strawman #s)Assuming 10% share, 5% affiliate feesTop Shoppers (~$7B/year spend): ~ $35M/year Professional-class frequent shoppers (~$1.8B/year): ~ $9M/yearOther Professional-class shoppers ($0.7B/year): ~3.5M/year Source: US Bureau of Labor Statistics
- 336. Version 2.0: Trusted AdviceTop ~6M US Influentials (~$9B/year)
- 337. something-something-something.comOriginal ideaInvincible Business Model: Version 2.0Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)FB/TW posts from users you knowCompany blog, FB, TW accountsDiscover online goods recommended by friends at the lowest possible price from trusted vendorsDeveloping trusted advice and advisorsWeb marketing Affiliate partnershipsConstant iteration & testingBloggers and Media targeting customer segmentRetail marketing partnersIE/FF/Chrome teamsAffiliate Program ProvidersAffiliate programSEO/SEM/SMIE/FF/Chrome App StoresDevelopersMarketersContent LibraryInstall baseReadership baseAffiliate program feesLicensingSubscription feesAd revenueAWS InfrastructureSEMEng & Marketing OpEx
- 338. Here’s What We FoundVersion 2: Trusted Advice
- 339. Findings on "Trusted Advice"GOODFast InterestInsidely.comTrusted advice site for Silicon Valley/Stanford MBAsLaunched 2/15425 visitors by 2/28
- 340. Findings on "Trusted Advice"Ranked #6 by Google for “Stanford Admissions Books”GOODFast InterestFindings on "Trusted Advice"GOODFast Interest
- 341. High Conversion43% clickthroughon Top Admissions Books for Stanford MBAs articleCompare to 0.5% clickthrough on ads~100x difference
- 342. Findings on "Trusted Advice"Positive results on “Trusted Advice” Shopping Add-in testingGOODFast Interest
- 343. High Conversion
- 344. Needs Addressed See videos at http://factnote.com/c/e245
- 345. Findings on "Trusted Advice"Positive results on “Trusted Advice” Shopping Add-in testingGOODFast Interest
- 346. High Conversion
- 347. Needs Addressed Super easy to install and use.I really did enjoy it! Great idea! I will keep the extension installed because I do think this is practical!I could see myself using this regularly
- 348. Findings on "Trusted Advice"Some negative results on “Trusted Advice” Shopping Add-in testingGOODFast Interest
- 349. High Conversion
- 350. Needs Addressed BADMissing FeaturesSee videos at http://factnote.com/c/e245
- 351. Findings on "Trusted Advice"Some negative results on “Trusted Advice” Shopping Add-in testingGOODFast Interest
- 352. High Conversion
- 353. Needs Addressed BADMissing FeaturesI was a little frustrated when it didn’t find the item I was looking forI can find more thorough price comparisons elsewhere…I usually don’t shop in Chrome, so that’s an inconvenience.
- 354. Findings on "Trusted Advice"MBA Exchange spams us out of GoogleGOODFast Interest
- 355. High Conversion
- 356. Needs Addressed BADMissing Features
- 357. SEO BattleHere’s Where We Ended Up Version 2.1: Trusted Advice
- 358. The adventure continuesTrusted Advice 2.0Protection against SEO-spammersNext Experiments: Trusted Lead Gen
- 359. Trusted Advice website powered by Shopping Add-insomething-something-something.comOriginal ideaInvincible Business Model: Version 3.0PAT THE PROFESSIONALUpwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)FB/TW posts from users you knowCompany blog, FB, TW accountsTRUSTED ADVICE Discover online goods recommended by friends at the lowest possible price from trusted vendorsFoil advertorial spammers polluting the Interweb with toxic pseudo-contentDeveloping trusted advice and advisorsWeb marketing Affiliate partnershipsConstant iteration & testingBloggers and Media targeting customer segmentRetail marketing partnersIE/FF/Chrome teamsAffiliate Program ProvidersAffiliate programSEO/SEM/SMIE/FF/Chrome App StoresDevelopersMarketersContent LibraryInstall baseReadership baseAffiliate program feesLicensingSubscription feesAd revenueAWS InfrastructureSEMEng & Marketing OpEx
- 360. What We LearnedPotential for disruption aboundsWhat We LearnedPotential for disruption abounds
- 361. Life is short, focus on big marketsWhat We LearnedPotential for disruption abounds
- 362. Life is short, focus on big markets
- 363. All we need is to be relentlessBlog Your Progress
- 364. How?Customer DevelopmentThe ProcessNarrativeInterviewsSurveysVideosPrototypesBusiness Model CanvasScorekeepingReal-time FeedbackPhysical Reality ChecksSkypeFace-to-face
- 365. We Made Students Blog Their ProgressIt Changed Everything
- 366. Interview
- 367. PhotosVideos
- 368. Surveys
- 369. Interview& Photos
- 370. Competitive Analysis
- 371. Key Findings
- 372. A/B Test Results
- 373. Key Question
- 374. Strategy
- 375. Business Model Canvas as the Scorecard
- 377. Business Canvas Change Progress 1
- 378. Business Canvas Change Progress 2
- 379. Business Canvas Change Progress 3
- 380. Business Canvas Change Progress 4
- 381. Business Canvas Change Progress 5
- 382. Business Canvas Change Progress 6
- 383. Business Canvas Change Progress 7
- 384. SidebarMarket Type
- 385. Product Introduction ConundrumProduct introductions aren’t predictableWhy?Is it the people that are different?Is it the product that are different?Are there different “types” of startups?
- 386. Three Markets TypesMarket Type changes everythingSales, marketing and business development differ radically by market type
- 387. Market Type Changes EverythingCustomers Needs
- 388. AdoptionMarketMarket SizeCost of EntryLaunch TypeCompetitive BarriersPositioningSalesSales ModelMarginsSales CycleChasm WidthFinance Ongoing Capital
- 389. Time to ProfitabilityThree Types of MarketsExisting MarketFaster/Better = High endResegmented MarketNiche = marketing/branding drivenCheaper = low endNew MarketCheaper/good enough = creates a new class of product/customerInnovative/never existed before
- 391. REVENUE STREAMSwhat are customers really willing to pay for? how? are you generating transactional or recurring revenues?
- 392. Market Size
- 393. Market/Opportunity AnalysisHow Big is It?: Market/Opportunity AnalysisIdentify a Customer and Market NeedSize the MarketCompetitorsGrowth Potential
- 394. How Big is the Pie?Total Available MarketTotal Available MarketHow manypeople would want/needthe product?
- 395. How large is the market be (in $’s) if they all bought?
- 396. How many units would that be?How Do I Find Out?Industry Analysts – Gartner, Forrester
- 397. Wall Street Analysts – Goldman, MorganHow Big is My Slice?Served Available MarketHow many people need/can use product?
- 398. How many people have the money to buy the product
- 399. How large would the market be (in $’s) if they all bought?
- 400. How many units would that be?How Do I Find Out?Talk to potential customersServed Available MarketTotalAvailableMarket
- 401. How Much Can I Eat?Target MarketWho am I going to sell to in year 1, 2 & 3?
- 402. How many customers is that?
- 403. How largeis the market be (in $’s) if they all bought?
- 404. How many units would that be?How Do I Find Out?Talk to potential customers
- 405. Identify and talk to channel partners
- 406. Identify and talk to competitorsTotalAvailableMarketServedAvailableMarketTarget Market
- 407. SegmentationIdentification of groups most likely to buyTotalAvailableMarketGeographic
- 408. Demographic
- 410. Behavioral variables
- 411. Channel
- 413. Market Size: SummaryMarket Size Questions:How big can this market be? How much of it can we get?Market growth rateMarket structure (Mature or in flux?)Most important: Talk to Customers and Sales ChannelNext important: Market size by competitive approximationWall Street analyst reports are greatAnd : Market research firms Like Forester, Gartner
- 414. CUSTOMER SEGMENTSwhich customers and users are you serving? which jobs do they really want to get done?images by JAM
- 415. Customers
- 416. Corporate? Consumer?Business to Business (B to B)Use or buy inside a companyBusiness to Consumer (B to C)Use or buy for themselvesBusiness to Business to Consumer (B to B to C)Sell a business to get to a consumerOther Multi-sided Markets with multiple customers
- 417. Corporate CustomersBusiness to Business (B to B)
- 418. 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?
- 419. Market Type & Ignoring CustomersExisting Market? Resegmenting an Existing Market?niche or low costNew Market?When do I ignore customer feedback?
- 420. Who’s the Customer in a Company?User?Influencer?Recommender?Decision Maker?Economic Buyer?Saboteur?Archetypes for each?
- 421. How Do They Interact to Buy?Organization ChartInfluence MapSales Road Map
- 422. Pass/Fail Signals & ExperimentsHow do you test interest?Where do you test interest?What kind of experiments can you run?How many do you test?
- 423. How Do They Hear About You?Demand CreationNetwork effectSales
- 424. Consumer CustomersBusiness to Consumer (B to C)
- 425. 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?
- 426. Market Type & Ignoring CustomersExisting Market? Resegmenting an Existing Market?niche or low costNew Market?When do I ignore customer feedback?
- 427. Consumer CustomersDo they buy it by themselves?Do they need approval of others?Do they use it alone or with others?
- 428. How Do They Decide to Buy?Demand CreationViral?SEO/SEMNetwork effect?AARRR (Dave McClure)
- 429. Pass/Fail Signals & ExperimentsHow do you test interest?Where do you test interest?What kind of experiments can you run?How many do you test?
- 430. The Consumer Sales ChannelA product that’s bits can use the webBut getting a physical consumer product into retail distribution is hardIs Wal-Mart a customer?More next week
- 431. Multi-Sided MarketsBusiness to Business to Consumer (B to B to C)
- 432. Who’s The Customer?Consumer End Users, Corporate Customers PayMultiple ConsumersEtc.
- 433. Multiple Customer SegmentsEach has its own Value PropositionEach has its own Revenue StreamOne segment cannot exist without the otherWhich one do you start with?
- 434. Customer RelationshipsGet – Keep - Grow
- 435. CUSTOMER RELATIONSHIPSwhat relationships are you establishing with each segment? personal? automated? acquisitive? retentive?
- 436. “Get Customers” Funnel$AcquireActivateGetting Customers – Virtual Channel
- 437. Earned and Paid MediaPR“Get Customers” FunnelViral MktgSEO$SEM/PPCAcquireActivateBlogs/WebsiteAffiliate MktgAdvertisingTradeshowsGetting Customers – Virtual Channel
- 438. “Get Customers” FunnelInterest$AwarenessConsiderationPurchase Getting Customers – Physical Channel
- 439. Getting Customers – Physical ChannelEarned and Paid Media“Get Customers” FunnelPRProduct Reviews$AwarenessTradeshowsInterestPurchase ConsiderationBlogs/WebsiteAdvertising
- 440. Earned andPaid MediaLoyalty ProgramsGet Customersproduct updates AwarenessKeep CustomersConsiderationPurchase InterestCustomer check-in callsCustomer satisfaction surveyKeeping Customers
- 441. Earned andPaid MediaGrow CustomersGet Customersproduct updates Loyalty Programs$AwarenessUp-SellConsideration$UnBundlingKeep CustomersCross-sellPurchase InterestReferrals$Customer check-in callscustomer satisfaction surveyGrowing Customers