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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.
A message that is brilliant today and gets the press writing about you and customers begging to buy your product could have been met with blank stares two years ago and may be obsolete next year. In crafting your messages, remember that all messages operate in a context that may have an expiration date. Customer Discovery Never Stops.
I know that this all seems obvious now with the movements started by Steven Blank ( Four Steps of Epiphany ) with the whole CustomerDevelopment processes / Lean Startup movements also popularized by people like Eric Ries. And he gave them all early access to our prototypes for reaction. Back then it seemed foreign.
But what I wanted was an agile marketing team capable of operating independently without day-to-day direction. To do that we will create end-user demand and drive it into the sales channel, educate the channel and customers about why our products are superior, and help Engineering understand customer needs and desires.
Startups with huge burn rates – building leases, staff, PR and advertising – ran out of money. Lean was designed to inform the founders’ vision while they operated frugally at speed. Then one day it was over. IPOs dried up. Most startups born in the bubble died in the bubble. The Rise of the Lean Startup. The result?
Secondly, they had an owned & operated (O&O) website – Google.com – and Overture had shut down GoTo.com at the request of their very profitable and large distribution partners. He wanted to build direct customer relationships to get product feedback but only 2% of customers would ever return their registration cards.
And so, the concept for a digital PR service was born. Using my existing skills and resources (including an old domain name), I tested a productized digital PR offer. About 18 months later, we pivoted our messaging to evolve beyond digital PR. These days, many agencies start as a lean operation. Image source ).
They outlined their retail channel and PR strategy and told me about the type of consultants they wanted to hire. Hiring PR Agencies. Bettina said, “We want to drive customer demand into our channel.” That’s smart I thought, a real clear charter for PR. The same is true for hiring the PR agency. They learned a ton.
I’ve seen many times what happens when a single department get’s holed-up in its own space, like the terrifying “ operations cave.&# Engineers are offenders in this category too, but so is any gender-segregated activity, like an all-female PR or marketing team. This is especially important across functional lines.
Otherwise you run the risk of shooting yourself in the foot by operating with completely false data. Talk to your customers or prospects. You have only 10 customers? No customers at all? If you’re starting out, what you need is customerdevelopment, not conversion optimization. No problem! Conclusion.
Salesforce.com CEO Marc Benioff put it best when he said that even though every company knows customer references are important, most companies have a lax approach to actually managing them. You just can’t half-heartedly paste a few new tactics on top of your current operations and expect advocates to start singing your praises.
Whats striking about these stories, if you get past the PR hype, are two very important themes: These prodigies were self-taught, and had a fundamental fascination with technology from a very young age. these devices all need human instruction to enable correct and desired operation.
Using mTurk to interview 100 customers (in 4 hours) | CustomerDevelopment Labs - [link]. How Customers evaluate your product | StartupCFO – [link]. Avoiding operating at capacity | Gabriel Weinberg’s Blog - [link]. The Most Effective SEO Content Strategy | Duct Tape Marketing - [link].
They outlined their retail channel and PR strategy and told me about the type of consultants they wanted to hire. Hiring PR Agencies. Bettina said, “We want to drive customer demand into our channel.” That’s smart I thought, a real clear charter for PR. The same is true for hiring the PR agency. They learned a ton.
Here’s how I learned why they were critical to successful customerdevelopment. I was an aggressive, young and a very tactical VP of marketing at Ardent , a supercomputer company – who really hadn’t a clue about the relationship between profound beliefs, customer discovery and strategy.
Startups built every possible feature the founding team envisioned (using “Waterfall development,”) into a monolithic “release” of the product taking months or years to build a first product release. There was no repeatable methodology, startups and their VC’s still operated like startups were simply a smaller version of a large company.
Shawn immediately said the name I had given the four steps was confusing – I had called it market development – he suggested that I call it CustomerDevelopment – and the name stuck. Delivery platforms are the vehicles through which customers come to interact with your product. Delivery platforms.
This series of posts is a brief explanation of how we’ve evolved from Product Development to CustomerDevelopment to the Lean Startup. The Product Development Diagram Emerging early in the twentieth century, this product-centric model described a process that evolved in manufacturing industries.
And when I wasn’t reading, I was also teaching operations which gave me a pretty good understanding of what we were looking for on the other side. It had no PR agency. But when the targets lit up, the music and chatter would stop, and the communications would get very professional. ESL had no marketing people.
You get to call all the shots, including how you want to operate the business and who you want to be involved. Noah Parsons says, “Start collecting contact information for interested, prospective customers. Develop a landing page, do some lightweight advertising, and generally reach out to as many potential customers as you can.”.
Heres a representative view from an actual Amazon customer review : We all know how to operate our own entertainment center, but what happens when you have to explain it to your babysitter, mother-in-law, or your wife? In a startup, these channels of communication are critical to understand for advertising, launch and PR purposes.
Even worse, entrepreneurs are faced with a constant barrage of vanity metrics from competitors and other companies engaged in PR. Companies want the coverage, but they don’t actually want to reveal anything useful about their operations. The PR firm helpfully left out that context.) Vanity metrics are generally bigger.
In venture capital in particular, early-stage companies are often operating in frontier industries, where the rules are unpredictable and conventional analytic frameworks may be misleading. Totem is an operating system that makes investors smarter by helping them leverage their knowledge, relationships & insights.
Every marketing communication hire couldn’t wait to produce the next great ad or PR program. In an early stage startup, instead of sales being up front, the point departments are likely to be product development and customerdevelopment. In my experience, every marketer with an MBA wants to “do strategy.”
Well, it turns out that to port long tail productivity apps to Google's App Engine is a somewhat cumbersome job, and requires a lot of customdevelopment. The long tail apps can easily be ported to or developed on Google App Engine in a third of the time and cost using OrangeScape as an application platform. Enter OrangeScape.
Have they moved to their forward operating bases in the Artic?) Also seeking to learn more about the Soviet Union’s offensive weapon systems , the CIA wanted intelligence to help them understand: What type of strategic bombers did the Soviets have? How many did they have? How would they reach the U.S.? How would we know if they were coming?
Promoting your referral program that supports local non-profits is a great way to use PR to enhance your referral program. Other businesses that work with small business owners and that you either know for a fact or feel operate in a way that would make you confident in referring them to your clients and network. Steps in the system.
Publicists and those seeking PR and media attention should look elsewhere. * It''s NOT about running a small company or a shoestring operation (though those can be smart things to do!) Instead , tell us what you’ve learned. Or share what didn''t work , or what took you by surprise.
This is the first post in what’s going to be a series of blogs on how to go from nothing – no connections, no team, no money and no knowledge of how the startup industry really works – to operating a growing business. I’m taking a 52 week course in how to start up, run, operate, and achieve self employment.
It took hundreds of years for newspapers to learn to behave as worthy holders of this public trust and cover the news without fear or favour, and create a firewall between news and views and the ad-sales side of the operation. I agree that listening and communicating is a key to success, but customerdevelopment can only do so much.
Why do you think outsources have been happy to generate all this PR the past few years about people losing their jobs to India? Twenty years from now, operating systems might also work as a good metaphor. The Entrepreneur’s Guide to CustomerDevelopment ► June (3) What is a startup?
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