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Chasing funding versus chasing customers and a repeatable and scalable business model, is one reason startups fail. Product Development – Getting Funded as The Goal In a traditional product development model, entrepreneurs come up with an idea or concept, write a business plan and try to get funding to bring that idea to fruition.
I was in New York last week with my class at Columbia University and several events made me realize that the CustomerDevelopment model needs to better describe its fit with web-based businesses. In it, I got asked a question I often hear: “What if we have a web-based business that doesn’t have revenue or paying customers?
CustomerDevelopment is all about gathering a list of what features customers want by talking to them, surveying them, or running “focus groups.” Gathering feature requests from customers is not what marketing should be doing in a startup. And it’s certainly not CustomerDevelopment.
For example, if you are trying to determine viral coefficient (see Startup Metrics ), then the focus should be around those aspects of the MVP. CustomerDevelopment Notes I'm assuming founders are having customerdevelopment conversations. Quite often these things get old quickly.
This is a customerdevelopment problem. By the end of this article, you should have a better understanding of how to develop new products or tweak your existing offerings by working with existing or prospective customers to incorporate their feedback to create viable solutions to their problems, and clearly communicate their value.
I forget that other people actually read this blog. I think that one of the good themes of this blog is that years != “dog years&# in deep industries. My own metric is that you need experience >= 1.5 To Steve B: thanks for a great blog, and connecting so many outlying or just plain uncorrelated dots. At best. ~
Kathy Sierra at Business of Software 2009 - Business of Software Blog , May 4, 2010 "In the old days, getting customers was easy. Bending over: How to sell to large companies - A Smart Bear: Startups and Marketing for Geeks , May 24, 2010 This is a guest post by Steve Hanov , who blogs about programming and startups.
And the results weren’t the traditional PR metrics of number of articles or inches of ink. We were constantly creating metrics to see the effects of different PR messages, channels and audiences on end-user purchases. on April 10, 2009 at 6:58 am Said: Amazing blog. I couldn’t care less about those.
It’s Not a Conversion Problem, It’s a CustomerDevelopment Problem. This is a customerdevelopment problem. So What is CustomerDevelopment? The core idea behind customerdevelopment is that the assumptions you make about a target market are only guesses. Website Analysis.
Metrics – Mine is Bigger Than Yours The first thing SuperMac needed to do was to change how our potential color desktop publishing customers viewed our products versus our competitors’ products. As hokey as it is, when confronted with uncertainty or unknowns, human beings like to be reassured by comparative metrics.
When we looked at the color graphics board market, our competitors had defined the market as one measured by technical metrics: screen resolution, number of bits of color, screen refresh rates, acceleration, etc. It didn’t take much imagination to realize that what we had to do was to tell our story around one key metric performance ?
We did three iterations of the product in less than 12 months, each one progressively going off of different consumer metrics that we found and then partner feedback. Coming up next on the blog: Emily Kennedy , founder and CEO of Marinus Analytics ; and Chris Cabrera , founder of Xactly. If you can’t hear the clip, click here.
1) It all starts from the Growth Hacking Funnel - in the early stages, startups should not just focus on top/bottom line metric like unique users and revenue. In a nutshell: Acquisition - Get people to hear about your product from press, blogs and social channels. KISS Metrics – How to Run A/B Tests that Get REAL Results.
The best entrepreneurship textbooks and blogs assume that advice to startups is generalizable. Reply Bowling Balls , on June 21, 2009 at 8:29 am Said: I found your blog on google and read a few of your other posts. But as I learned from my students this “one-size-fits-all” approach does not work for all startups.
But we couldn''t have identified this without having clear metrics (that high bug count) to assess our development process. On CustomerDevelopment in a growing company, Wyatt offered the following advice: Wyatt: We''ve employed a number of systems in the organization that keep all of us close to the customer.
In fact, this crisis was at the heart of Steve Blank ’s original impetus to developcustomerdevelopment as an alternative set of milestones to use for startups.) I hear similar things for pre-revenue startups that are on schedule, on time, and on budget - even though they are busy building something that nobody wants. (In
The reason is that b2b fundraising is largely driven by data and metrics, and pre-seed dollars usually don’t get you to many meaningful data points. Unlike in B2B, you don’t necessarily want to use a second-seed round to get to metrics that every investor will appreciate. Experienced founders: B2B. Experienced founders: Consumer.
And other startups are in a New Market — creating a market from scratch (like Apple with the iPhone, or iPod/iTunes.) (“Market Type&# radically changes how you sell and market at each step in CustomerDevelopment. Blog at WordPress.com. I cover this in the Four Steps to the Epiphany.)
In future posts I’ll describe how Eric Ries and the Lean Startup concept provided the equivalent model for product development activities inside the building and neatly integrates customer and agile development. shoes in order to deduce possible competitors’ moves and anticipate customer needs.
Gathering real-world feedback from customers is a core concept of CustomerDevelopment as well as the Lean Startup. When I asked him if he actually had personally left the building and talked to these potential customers, or even had gotten them on the phone, he sounded confused. But what information to collect?
Visit his blog to read more about startups and product design. For the past year, they invested in the team and technology to prioritize speed of iteration with disregard to traditional methods of customerdevelopment and company building. Ryan Hoover is the co-creator of Product Hunt and EIR at Tradecraft.
note: If you’re a startup, you’ll want to use customerdevelopment questions for your page to resonate with future traffic). Ask Peep about analytics, and he’ll tell you, “Metrics are there to provide actionable insight. You need to look at a metric, ask “so what?” – and have an answer.”. image source.
You can listen by subscribing to my podcast on iTunes , or it’s enclosed in this blog’s RSS feed , or you can just download the mp3 of the first hour. Because then you’d miss out on: Whether it’s better experience to build a complete, tiny startup or to do more in-depth customerdevelopment for a meatier problem.
And the final lesson was that we were keeping score on our packaging with the wrong metrics – it wasn’t about awards, it was about sales in the retail channel. Hopefully you and your co-founders are experts in one or two parts (agile development, SEO/SEM, etc.)
To guide the discussion, we’re going to be using Dave McClure’s Conversion Metrics as a framework to see where different conversion optimization opportunities lie. For Acquisition, we’re primarily asking how do first time visitors & potential customers find you? Even The Comments On Active Blogs. image source. The result?
In another study, Wistia dug into the visitor data for their own homepage video & found that roughly 30% of their video views came from prospective customers. ” The visitor/view metric is one you should only be competing against yourself on. ” metric for featured products & +28.0
You can listen by subscribing to my podcast on iTunes , or it’s enclosed in this blog’s RSS feed , or you can just download the mp3 of the first hour. Because then you’d miss out on: Whether it’s better experience to build a complete, tiny startup or to do more in-depth customerdevelopment for a meatier problem.
You can start by reading a few (or all) of these 17 venture capital blogs, reading Tim Berry’s thoughts on what venture capital firms want, and his advice on finding venture funding. 11 Angel Investor Blogs You Should Be Reading. 17 Venture Capital Blogs You Should Be Reading. Step 8: Track your metrics. Funding Guide.
Dave McClure’s conversion metrics visualize where different conversion optimization opportunities lie—including those for acquisition. If you don’t have customers, our articles on customerdevelopment and how to write compelling copy without customers can help you get started. Image source ).
We’ll build the class around the business model / customerdevelopment / agile development solution stack. Instead you will be getting your hands dirty talking to customers, partners, competitors, as you encounter the chaos and uncertainty of how a startup actually works. Start your blog/wiki/journal.
We did three iterations of the product in less than 12 months, each one progressively going off of different consumer metrics that we found and then partner feedback. Coming up next on the blog: Emily Kennedy , founder and CEO of Marinus Analytics ; and Chris Cabrera , founder of Xactly. If you can’t hear the clip, click here.
The excerpts, which appeared first at Inc.com , highlight the CustomerDevelopment process, best practices, tips and instructions contained in our book. Marketing tries to pick an “event” (trade show, conference, blog, etc.) Financial progress is tracked using metrics like income statement, balance sheet, and cash flow.
In fact, you could say that all that remains from my last book are the four steps of CustomerDevelopment. Integrates Alexander Osterwalders “Business Model Canvas” as the front-end and “scorecard” for the customer discovery process. I’ll keep you updated on this blog as we record our lectures.
Investors sitting through Incubator or Accelerator demo days have three metrics to judge fledgling startups – 1) great looking product demos, 2) compelling PowerPoint slides, and 3) a world-class team. Entrepreneurs should always communicate their business’ very latest stage of customerdevelopment as part of their investor presentation.
note: If you’re a startup, you’ll want to use customerdevelopment questions for your page to resonate with future traffic). Ask Peep about analytics, and he’ll tell you, “Metrics are there to provide actionable insight. You need to look at a metric, ask “so what?” – and have an answer.”. image source.
Part of the answer is the title of this blog post. 6:22 What’s CustomerDevelopment. 6:22 What’s CustomerDevelopment. 32:05 No Innovation Pipeline, Guidance or Metrics. At the end of the interview I got surprised by a great question – “What’s the Problem that Still Haunts You?”
They have many, many man-years of development and customerdevelopment in them. I think it was either in one of your blog posts or one of your other interviews, but being alone, it’s getting hard at times. What I mean by that is startups nowadays that raise money have absolutely ludicrous metrics.
We had some radical thoughts how companies were going to have change to remain competitive in the 21 st century in a blog post. in developing these new models. It only emerges after an intense business model design and search activity based on the customerdevelopment process. And why wouldn’t it be?
Every year, our team conducts more than 500 customerdevelopment calls to understand what challenges the community is facing. She shares: “We now use metrics like cost-per-learning and validation velocity to show progress since traditional things like ROI weren’t applicable.” Here are some of our favorites: 1.
As a follow up to our data driven traffic acquisition article , we’re going to be looking at the roles emotion & data play in “activating” customers and using Dave McClure’s Conversion Metrics as a guide to the larger conversation. The Mega-Details Behind the New Design of The Smart Passive Income Blog.
Before this occurs, the sales process is a craft or an art - custom-made by the founder or evangelist sales VP. You dive deep into a customerdevelopment process, working closely with a few customers who feed you requirements and are willing to trial an imperfect product that is evolving quickly. 1) Enterprise Sales.
As a follow up to our data driven traffic acquisition article , we’re going to be looking at the roles emotion & data play in “activating” customers and using Dave McClure’s Conversion Metrics as a guide to the larger conversation. The Mega-Details Behind the New Design of The Smart Passive Income Blog.
Laura is not only the author of UX for Lean Startup and the creator of the design blog Users Know , she’s also Head of Product at Hint Health, a software company working on healthcare affordability, and one of our most popular speakers. In that case, metrics and analytics are really important. We already know about that.
As a follow up to our data driven traffic acquisition article , we’re going to be looking at the roles emotion & data play in “activating” customers and using Dave McClure’s Conversion Metrics as a guide to the larger conversation. The Mega-Details Behind the New Design of The Smart Passive Income Blog.
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