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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?
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.
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.
Reading the NY Times article “ Jeffrey Katzenberg Raises $1 Billion for Short-Form Video Venture, ” I realized it was time for a new startup heuristic: the amount of customer discovery and product-market fit you need to find is inversely proportional to the amount and availability of risk capital.
You’ve likely already heard that explainer videos can boost conversions anywhere between ten and ten bazillion percent. With over 100 years of movie & video history embedded in our collective subconscious, your customer’s expectations are really high. What Is An Explainer Video? A Tutorial. image source.
If you want to see what all the fuss was about, you can watch complete video of last year's track courtesy of my friends at Udemy.) Luckily, in a room full of entrepreneurs, plenty of new businesses popped up to bring people food and water. (If
Filed under: CustomerDevelopment , Venture Capital | Tagged: Entrepreneurs « CustomerDevelopment Manifesto: Market Type (part 4) CustomerDevelopment Manifesto: The Path of Warriors and Winners (part 5) » 16 Responses Jon Ziskind , on September 14, 2009 at 9:19 am Said: Steve – Great post and really great advice.
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. It wasn’t measured by how busy you were, it was measured by results. I couldn’t care less about those.
He’ll be running a hands-on session on how to make a compelling business video. Here are just a few things you might look for: Reducing risk in young companies Bringing innovation to the enterprise Designing and running experiments Customerdevelopment strategies All conference passes are on sale right now, and you can compare them here.
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.
Dan Miller is the co-founder and CEO of Level Therapy , which provides access to psychotherapists through video, voice, and text. 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. Clips from their interviews are below.
The video is only 16 minutes long and it is well worth the time. They’re deep into CustomerDevelopment ,” he said. Klout Puts Metrics Into Social Media Management - Tim Berry's Blog - Planning Startups Stories , May 21, 2010 I really like klout.com for three good reasons: 1.) It's a great talk. It's a great talk.
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 ?
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. “superstar” content such as infographics/video is worth investing in ). KISS Metrics – How to Run A/B Tests that Get REAL Results. Rinse and repeat.
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.
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. It’s one of the subtle distinctions that at times gets lost in the process. Blog at WordPress.com.
Reply conversationalistOU812 , on November 9, 2009 at 10:31 am Said: Dmitriy is right – we should ban the use of industry buzzwords like “verticals&# , “metrics&# and “horizontals&# altogether. What is it that’s unique about the market I’m in? Blog at WordPress.com. Theme: Digg 3 Column by WP Designer.
You cannot draw a direct line to reducing waste or improving revenues or cutting costs…whereas the cross-functional teams, you can tie it to a performance metric that has a direct result in the corporate objectives. You have to go find your own customers to experiment with, you have your own brand, so you have to think like a Lean Startup.
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. What do you think?
It taught lean theory ( business model design , customerdevelopment and agile engineering) and practice. The irony is that once you’ve gone through the lean cycle, you have all the information that goes in a business plan: customers, sales strategy, product features, and financial metrics. Seeing Is Believing.
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.)
These videos are not only great tutorials for founders but also provide educators another source of well produced and curated resources. These “Startup” videos are a great general purpose companion to my “ How to Build a Startup ” lectures on Udacity. 1:49: Use CustomerDevelopment to Test Your Hypotheses.
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.
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 ). The result?
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. And we can offer investors metrics to play Moneyball – with the Investment Readiness Level. We think we can do better. Here’s how.
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? So Where Exactly Does “Conversion” Happen? image source.
Dan Miller is the co-founder and CEO of Level Therapy , which provides access to psychotherapists through video, voice, and text. 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. Clips from their interviews are below.
Just as you would with a customer, you need to understand their needs better. First, you need to find a way to have them experience what their customers are actually going through. Often, a good way to do this is with video. In that case, metrics and analytics are really important. We already know about that.
They have many, many man-years of development and customerdevelopment in them. I haven’t looked at the video yet, but I should be able to understand from the headline and get some kind of emotional reaction to the headline. What I mean by that is startups nowadays that raise money have absolutely ludicrous metrics.
Noah Parsons says, “Start with cheap mockups, wireframes, or even sketches on paper to make sure that your customers are going to want what you build.”. Including software prototypes, MVPs come in many flavors, including: Explainer videos. Building the Minimum Viable Product by Eric Ries [YouTube video]. Wireframes.
A decade later, I began to teach the foundations of Lean, first at UC Berkeley (CustomerDevelopment) and then at Stanford using cases and business plans. Lean-driven (hypothesis testing/business model/customerdevelopment/agile engineering). Third, the tools for customer discovery (videos, sample experiments, etc.)
Every year, our team conducts more than 500 customerdevelopment calls to understand what challenges the community is facing. Prerna's vision is to share stories across multiple platforms, including apps, video, and virtual reality. We come across some interesting stories from people who are really making things happen.
Rather than try and tell you more about their amazing journeys, I invite you to explore the teams final videos and slides for yourselves. I think you will see the work of some talented and determined entrepreneurs who have honed their customer discovery and customerdevelopment skills to an impressive level. Beertending.
He had just filmed the second of a series of videos called, Speaking to the Big Dogs: How mid-level managers can communicate effectively with C-level executives (CEO, VP’s, General Managers, etc.) And that he might want to think about aligning all his video and Internet products under that name. CustomerDevelopment.)
WHATS HOT: EVENTS NEWS LEARN CAREER VIDEOS ESPAÑOL. After quitting my job and starting Sorced , I spent a few months validating my business concept by creating the product mockups and doing customerdevelopment. Video Interviews. female founders. founder friday. Conference 2012. However, I needed to actually build it!
Disruptive innovations are coming from startups – Telsa for automobiles, Uber for taxis, Airbnb for hotel rentals, Netflix for video rentals and Facebook for media. As a consequence, corporations used metrics like return on net assets (RONA), return on capital deployed, and internal rate of return (IRR) to measure efficiency.
” As the managing editor of Bplans, I’ve had the good fortune to learn about business via the content we share; through interviews with LivePlan customers and other business owners; and thanks to brilliant, informal coaching from people like Tim Berry, Noah Parsons, and the rest of the executive leadership team at Palo Alto Software.
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. Strongly Recommended Reading: How to Create Customer Feedback Loops at Scale.
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. Strongly Recommended Reading: How to Create Customer Feedback Loops at Scale.
Lessons Learned by Eric Ries Saturday, November 8, 2008 What is customerdevelopment? But too often when its time to think about customers, marketing, positioning, or PR, we delegate it to "marketroids" or "suits." Many of us are not accustomed to thinking about markets or customers in a disciplined way.
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. Strongly Recommended Reading: How to Create Customer Feedback Loops at Scale.
They contacted a dozen admissions consulting firms, ran three Usertesting.com video interviews on a social shopping tool, surveyed 40 Stanford students on their on-line shopping habits, and then did another survey of 700 Stanford MBA students (!) What are the key financials metrics for costs in your business model? Access to resources.
Coupled with A/B testing, customerdevelopment, and thinking through business problems in a scientific, hypothesis-driven way, you end up with a powerful cocktail of techniques to build a modern startup in the most iterative way possible. Portals that want to unify news, communication, tools, etc. Please comment!
If you follow Lean Startup experts, you’ve probably come across Brant Cooper and Patrick Vlaskovits , co-authors of The Entrepreneur’s Guide to CustomerDevelopment and The Lean Entrepreneur , and leaders of our workshop “ The Lean Entrepreneur: Embrace the Unknown to Go Big.” Patrick recently answered a few questions for us.
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