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Customer Development, Customer Success, SaaS, Startups

How to Nail the First Step to Scalable SaaS Growth: Customer Research

By Nichole Elizabeth DeMeré & Trevor Hatfield

We’re in the midst of writing our SaaS Growth Playbook – a zero bullshit, actionable guide to growing SaaS businesses that are set up to scale from the start. It’s an ambitious undertaking, because so much has been written about this. Really great books like The Startup Owner’s Manual (currently highlighted and bookmarked past recognition on our desks), The Lean Startup and Lean Analytics, Value Proposition Design, and that whole “Jobs to be Done” thing? Is that a book yet? Because it seems like every founder we’ve spoken with in the last two months can’t stop talking about it.

Yes, there are a lot of good ideas out there. Great ideas, even. But that’s the thing. There are so many ideas. What we’re doing is taking the ideas we know work – because we’ve seen them work time and again in real businesses we’ve consulted for – and explaining them clearly, quickly and actionably. With zero fluff – because ain’t nobody got time for that.

At the core of all of these methodologies (and what we’re writing) is this:

Getting to know your customer really, really well.

And that is hard. For any size business. It’s as hard as it is vitally important, because everything you do, from developing your product, to marketing your product, to creating a brand that drives customers to you – it all starts here.

So few startups get this right.

And established companies? They get this wrong all the time.

Take Campbell’s Soup, for example. Few brands are as established as Campbell’s Soup. That red and white label, immortalized by Andy Warhol no less, is iconic. And they ditched it. Recently (you may have noticed?).

They completely rebranded their labels in an effort to appeal to their new target audience: Millennial moms. So they took inspiration from Pinterest and Tumblr and made these really weird microwavable packets with faces on them.

Weird, right? But that’s what companies do when they want to be “hip” without actually asking the people they’re trying to be “hip” for what they want.

It turns out, Tumblr-like labels didn’t hit the mark. What Millennial moms really wanted was a change inside the can. Clean, whole ingredients. Once Campbell’s realized that, it changed their marketing entirely and the result was refreshingly relevant.

Now, most of us don’t have Campbell’s Soup kind of money. But we can all aspire to do customer research before investing in a re-brand – right folks?

That’s what this is about. Saving money by doing the hard thing first – talking to your customers to find out what they want.

But first, you have to define who, exactly, you need to talk to.

And that starts by developing a hypothesis.

The Hypothetical Customer

“I think my customers are ________. The problem they have that I can solve is _________.”

Go ahead, take a stab at it.

“I think my customers are SaaS founders. The problem they have that I can solve is too much conflicting information and no guarantee that the pages filling up their bookshelves actually work.”

That is our working hypothesis for our book.

If you have a few types of customers you intend to serve, come up with a hypothesis for each segment.

This is the easy part! You’ve created or at least ideated your company with a customer and solution in mind. Now comes the hard part: Validating your hypothesis, or chucking it into the bin.

Most books spend hundreds of pages circling around this topic. We know, we’ve highlighted the good stuff. But what it comes down to is this.

  • List everyone you know who falls into the category of customer you’ve just described. List everyone you don’t know personally, but seem like they would fall into the category of customer you’ve just described. See if you can come up with a list of 20 people.
  • Now, email each of those people and ask to set up a 15 minute call. Or, if they’re local, you can sit down with them in person and buy them a cup of coffee. Make it clear you’re not selling anything, and that you value their expertise and time. And, if you’re shy about asking for a favor, thank them with a Starbucks gift card or trade some of your expertise and time. Reciprocity isn’t just a marketing hack – it’s important in all stages of business.
  • Ask them these three things:
  1. What jobs do you need to do around [what your industry/product/problem is]? Have them walk you through their process and record the exact words they use. For example, if you’re selling an HR solution that helps companies hire qualified people faster online (shoutout to Vervoe!), the tasks a business owner, manager or HR person need to do is create a job posting, sort through resumes, figure out interview questions, and spend hours interviewing people.
  2. What’s hard about those jobs? Let them rant about how hard they work and what grinds their gears, how they’ve failed or got outcomes they didn’t want. Record everything.
  3. If those issues were magically solved – what do they love about their jobs? What would they love about their lives? What would solving that problem allow them to do with that time instead?

Sure, there are a million and more questions you could ask – but these three focus on what jobs these customers need to do, what their pain points are surrounding those jobs, and what their ideal outcomes are.

We’re using a little of the Startup Owner’s Manual, a little Lean, a little Jobs to be Done, a dash of Customer Success – and a lot of experience here.

The answers you gain will start to show you some truths about your hypotheses.

  • You’ll start to see that some kind of ‘ideal customers’ are more ideal than others.
  • You’ll check whether the problems they have match the problems you think they have.
  • You’ll compare the language you use to describe those jobs and problems with the language they use.
  • And you’ll uncover insights you can’t even begin to guess at right now.

You may have to go back to the drawing board and re-write your ideal customer hypothesis – and that’s okay. It’s progress.

And you’ll definitely come away with language you can use for marketing – it’s one of the most valuables takeaways of this exercise.

Don’t be Lazy

Why can’t you just send a survey? Hey, that’s the reaction of most founders, too. Really. If we all agreed to just keep things simple by communicating via text message and Slack, we’d have more time for everything else. But believe us when we say: You need to hear their words.

In person, if possible.

Yes, it takes time and it’s nerve-wracking and uncomfortable. But it’s worth it. People will not tell you on a survey what they will say to your face. They won’t even tell an employee of yours the same thing they’ll tell you, the founder. With an actual conversation, you’ll be able to ask in-the-moment follow-up questions, listen to the tone of their answers and put their words into an emotional context, and most importantly – you’ll be starting a relationship with potentially ideal customers who might become your first customers. Your best customers. Customers that will adopt early and advocate for you.

All of this comes from person-to-person communication. You can’t survey it away.

Keep it Short

A few rules for polite customer research:

  • Keep it short – stick to 15 or 20 minutes. It’s enough to get deep information without scaring people away.
  • Make sure every question you ask is actionable – as in, if you don’t plan to act on the information you get, don’t waste time asking the question.
  • Avoid yes/no questions. The goal is to get voice-of-customer data, which means you need to let them speak and not put words into their mouths.
  • Don’t take anything personally. These people want solutions to their problems, and maybe you have them, but even if you don’t, they’re giving you valuable feedback.
  • Show appreciation somehow. This doesn’t need to be fancy or expensive, but it should be personal and helpful.

Sort Your Answer Pile

In the course of customer research, you’ll speak with people who may have seemed like ideal customers at first, but then clearly were not.

And others who aren’t so clear. They could go either way.

The answers you need most are the ones from your ideal clients, and to make sure you’re sorting the Ideals from the Non-Ideals accurately, ask yourself this:

  • If I gave this person my product/service/solution, could they successfully use it to reach their ideal outcomes.

This is a Customer Success approach that I really like because it sets you up to work with people who are primed and ready to love your product (and tell their friends about it). It’s also a way to avoid The Product Death Cycle of customer churn, panic, product changes and bankruptcy.

Success Potential relies on several different types of “fit” that the customer has to have to be able to use your product/service and reach their ideal outcomes. Types of fit include:

  • Technical – They have or can get the right technology to use your product.
  • Functional – Your product offers the features the customer needs to achieve their ideal outcome.
  • Resource – They have the time, money or manpower to use your product.
  • Competence – They know or can learn what they need to know to be successful with your product.
  • Cultural – They share your core values, without which you wouldn’t work well together.
  • Experience – You are able to deliver your product in the way they need to succeed, like having a Customer Success agent assigned to them if they need a high-touch approach, or clear in-app walkthroughs if they prefer to DIY. It’s about providing an appropriate experience that gives them support, in the way they need to be supported, to succeed.

There are other types of fit too, and you should feel free to build your own list and keep adding to it as you grow. Understanding fit now will go a long way towards preventing churn, and understanding churn when it happens.

You’ll be returning to your customers for feedback again and again – and if you don’t know which customers to ask, that feedback can get you into trouble! That’s why we’re spending a lot of time on laying the foundations that are so important to building a sustainable, scalable business. At the end of the day, it’s not about what you know – it’s who you know, and how well you know them.


Take the growth out of guesswork and get our Playbook to Grow Your Saas Business With Your Customers.

Content Marketing, Customer Development, Customer Success, Diversity, Growth Hacking, Podcasts, Product Management, SaaS, Startups

#EveryoneHatesMarketers: 4 Vital Things To Do Before Marketing Your New Startup

“Today I’m joined by my guest Nichole Elizabeth DeMeré, an esteemed SaaS consultant, customer service evangelist, writer and community moderator. Her work has been featured in leading industry media such as HubSpot, Moz, Copy Hackers, Forbes, Canva and more.

Nichole is going to walk us through the four things you need to do before you can start marketing your startup or new business. Founders tend to skip the basics of marketing foundations, and this crucial step can make or break your business. Listen in for Nichole’s four most important pre-marketing initiatives that you need to know for your startup or to refresh the marketing of an existing business.”

Topics discussed in this episode:

  • The importance of marketing foundations
  • Growth hacking pitfalls
  • Customer development work
  • Resources to identify ideal customers
  • Creating your first value proposition
  • Filling success gaps
  • Recommended reading

Transcript on Everyone Hates Marketers


Take the growth out of guesswork and get our Playbook to Grow Your Saas Business With Your Customers.

Content Marketing, Podcasts, Product Management, SaaS, Startups

#ForgetTheFunnel: 4 Steps to Align SaaS Content Marketing & Product Management

I was absolutely honored to be on Forget The Funnel, with hosts Georgiana Laudi and Claire Suellentrop to discuss four steps to align content marketing and product management.

Check out the video replay for the 30-minute workshop.


Take the growth out of guesswork and get our Playbook to Grow Your Saas Business With Your Customers.

Customer Experience, Customer Success, Emotion, Products, SaaS, Startups

A Completely Different way to Look at Customer Fit for SaaS Startups ft. @LincolnMurphy

There are so many ways businesses segment customers, and many of them are useless: demographics, location, purchasing histories, size of company, how much the customer pays, and so many more.

But there’s one method of segmentation that tends to be overlooked. And overlooking it will lead, invariably, to churn.

It’s called Appropriate Experience (AX). And I guarantee it’s not what you think.

What is Appropriate Experience?

Appropriate Experience is an extremely customer-centric idea, because it’s all about them. The customers. Their experience. But this isn’t “customer experience.” Forget CX and customer satisfaction. No, no. This is completely different.

Appropriate Experience is about how the customer needs to be treated and supported by you so they can reach their desired outcome.

But what is it really – in practice?

For SaaS, a good example of Appropriate Experience might be customers who need high-touch customer support vs. low-touch. Maybe the customer’s Appropriate Experience is self-service, because they have the expertise and technical abilities to figure out most things for themselves. Or maybe the customer’s Appropriate Experience requires some hand-holding, a designated customer-success manager and 24-7 help desk.

Lincoln Murphy, who championed AX, explains it this way:

You see, a customer has a required outcome. A thing that they need to achieve… And they have a way that they need to achieve that Appropriate Experience. That Appropriate Experience – AX as I call it – goes across the entire customer lifecycle.

He mentions Appropriate Experience within the context of the checklist he recommends using to see whether a customer has “success potential.”

Here’s that checklist (view full descriptions on his article about success potential.)

  • Technical fit
  • Functional fit
  • Cultural fit
  • Competence fit
  • Experience fit
  • Resource fit

In many ways, Appropriate Experience (aka. Experience fit) is the flip-side of Resource fit. Resource fit asks the customer if they can spare the resources to put in the time/money/manpower to succeed with the product. Experience fit asks you – the SaaS company – the same question.

The question you need to ask yourself is…

Do you have the resources to ensure that this customer has the experience they need to reach their ideal outcome?

What experience are you able and willing to provide?

You may not have the resources to serve customers who need the high-touch approach.

And that means that you can’t give that particular customer segment their Appropriate Experience, and they won’t be successful with you.

You can’t afford not to identify your customer segments by the experience they require.

Yes, that also means you can’t afford to keep customer segments to whom you can’t deliver an Appropriate Experience. Even if they’re paying you.

It sounds crazy to turn away good money, I know.

But these are people who will never be satisfied with what you offer. They won’t refer you business. They’re highly likely to leave lackluster reviews. And they will churn – after wasting a tremendous amount of your time and resources trying to make them happy when that was never gonna happen.

What happens when you segment your customers and find that a lot of them could use a different experience? Well, then it’s…

Problem-solving time

When you use Appropriate Experience as a factor in customer segmentation, you may find that a large part of your customers demand a type of experience you’re not currently providing.

Uh oh.

You have a few options.

You might consider expanding your services and scaling to meet that need.

If this is a possibility, you’ll want to first survey that segment and ask them what experience would most help them achieve their desired outcomes. But when you do, keep Lincoln Murphy’s checklist in mind. Are these customers who have success potential, if only they had a slightly different experience?

Also keep in mind that Appropriate Experience isn’t limited to how much help a customer gets. It’s not just a high-touch/low-touch issue. If my desired outcome is to go out to dinner with my significant other for a romantic evening, there is a very specific experience I need to achieve that, and Burger King isn’t going to do the job. Think holistically.

Another option, of course, is to not scale or change the experience you provide. You could decide to focus on the customer segment whose Appropriate Experience matches what you’re prepared to offer.

Both are actually good options.

The only bad option is accepting the business of someone you can’t really serve.


Let’s Get SaaSsy – I’m offering a limited number of SaaS consulting engagements.

Content Marketing, Startups

Startup Founders, This is How to Do Content Marketing from Day 1

Want your website to summit the search engine results page? You need a blog. Want to establish yourself as a thought leader in your industry? A blog can make your name. Need to provide content that nurtures leads and gives current customers what they need to be successful with your product? All of that can be done with a blog.

This isn’t news.

You know you need a blog. And, by now, you’ve probably figured out that just having a blog isn’t enough to get any of the above results. It has to be good.

Scratch that.

“Good, unique content. Problem is, almost everyone can get here. They really can. It’s not a high bar, a high barrier to entry to say you need good, unique content. . . . If you can’t consistently say, ‘We’re the best result that a searcher could find in the search results,’ well then, guess what? You’re not going to have an opportunity to rank.” — Rand Fishkin, Why Good Unique Content Needs to Die — Whiteboard Friday

It has to be great.

But even Level-Great content is becoming saturated because the secret is out. Content is the key to:

  • Build brand recognition — 71% of all respondents who maintain blogs for a business report that they have increased their visibility within their industries through their blogs.
  • Establish leadership in your space — In 2016, 36% of Fortune 500 companies have a public blog.
  • Boost acquisition — 77% lift in median monthly leads occurs to businesses with over 51 blog articles.
  • Improve retention — “A business’ best protection against churn is a Customer Success team armed with a content marketing strategy.”

Unbounce figured this out almost immediately. In an interview, Unbounce Co-Founder Rick Perreault said, “We started marketing the day we started coding.” What did that marketing look like? One marketing employee who focused on creating high-ranking blog content that produced significant and consistent value to the reader.

You know all this. You’re sitting there thinking “Yeah, I know, content is king, quality is king, we’ve got a pair of kings and our content STILL isn’t getting us to Page 1.”

The problem is: You’re creating all of this quality content without a cohesive SEO strategy in place. A strategy that leverages your great, big body of content to achieve the most effect.

We’re not talking about a list of keywords here.

But to understand the kind of strategy we’re suggesting, you’re going to need a brief history lesson.

Read More on HubSpot’s “Think Growth”


Let’s Get SaaSsy – I’m offering a limited number of SaaS consulting engagements.

Customer Success, Onboarding, Product Management, SaaS, Startups

How to Create Customer-Centric (Not Product-Centric) User Onboarding Flows ft. @Appcues

Onboarding is a magical time—magic in the sense that if your users don’t find what they need and get the results they want, they will magically disappear. Also, magic because of its transformational power to turn tire-kickers into loyal users.

Will your onboarding process lead to a disappearing act? Or will it enable you to build a lasting customer relationship?

It all depends on how you build customer success into your user flows.

Many onboarding user flows are designed to help the user set up their accounts and learn how to use the product. That’s all very useful. But these user flows are missing a step.

Account setup and functional learning are important, but only as much as they help the user achieve their ideal outcomes.

Your user doesn’t care about your interface. They don’t really care about your tool either. They care about achieving their ideal outcome in the simplest, easiest, fastest way possible.

That’s what your product is designed to deliver, isn’t it?

Yet, too often, we fail to include the actions that mean success for the customer into the very user flows designed to get them there!

It’s time we re-think product-centric user flows—especially in onboarding.

Read More on Appcues


Let’s Get SaaSsy – I’m offering a limited number of SaaS consulting engagements.

Growth Hacking, Startups, Teams

Why Hiring is the Growth Hack You Never Considered by @OmerMolad

Image created by Yasmine Sedky (@yazsedky).

“Growth hacking is about running smart experiments to drive growth within your business.” – Sean Ellis

If you’re reading this, you’re probably familiar with the term “growth hacking”, which seems to be everywhere at the moment. Everyone I meet is a growth hacker all of a sudden. But despite a little bit of froth on the milkshake, the hype is very real and it’s here to stay. Here’s why.

First, people will do almost anything to grow their business. For a small business or startup, growth is the difference between life and death.
For a small business or startup, growth is the difference between life and death. Click To Tweet

Second, it’s in our nature to experiment. We try different foods until we figure out what we like and we date different people until we find “the one”. By and large we live life through trial and error and we learn through our experiences.

Experimenting across different traction channels or, in “human language”, trying to find customers in different ways, is a smart way to drive growth. It’s time to take this one step further and create a culture of experimentation by applying a “growth (hacking) mindset throughout the entire business.

The obvious place to start is people – building and growing teams – because there is no better growth engine than a great team.

It’s A People Game

“Great vision without great people is irrelevant.” – Jim Collins

Ask any investor about the first thing they look for when making an investment decision. It’s the team.

Ask any lender what will always be a deal breaker, regardless of cash flow quality. They’ll say management.

What’s the single biggest factor in job satisfaction? Quality of co-workers.

We’re just humans building products for other humans, either to ease pain or give pleasure.  Everything else is a means to an end.

Yet, while we use words like “obsessed” and evangelist” about getting customers, we don’t tend to think of hiring people in that way. We use very sophisticated methods to find and win customers but tend to be stuck in neutral when it comes to building teams.

At Vervoe, we’re changing that.
At @VervoeHQ, we're changing evangelism around hiring the right team. Click To Tweet

Just like experiments have proven to drive growth, they will also help you hack hiring. You just need to cast aside any long-held views and embrace experimentation.

Here are four dead simple ways to apply a growth (hacking) mindset to hiring and immediately make your business more valuable.

Four Easy Hiring Hacks You Should Start Using

Hiring Hack #1: Ditch the Résumé

Ditch the résumé. Résumés are not required to make a hiring decision.

 

“I think, to me, reality is better than being fake.” – Ice Cube

Hypothesis: Résumés are not required to make a hiring decision.

Still asking candidates for résumés? Go résumé-free for one role.

Résumés are typically used to decide who to interview. Instead, don’t decide, just give everyone a chance. Sound like a waste of time? Actually, it’s faster if you use automated interviews.

This delays the first impression we form about people to after we see them perform. It allows us to focus on what people can do and who they really are, as opposed to what they’ve done previously, which school they went to or how weird their name sounds. Because, honestly, who cares about that stuff.

After you pick the best performers in the interviews, go over their backgrounds and ask yourself whether you would have picked those people out of the résumé pile. Then go over the ones you rejected and see if any of them have fancy résumés that would have made you choose them for an interview.

Be honest.
Hiring Hack: Résumés are not required to make a hiring decision. Click To Tweet

Hiring Hack #2: Don’t Outsource Your Most Sacred Activity

Don’t outsource your more sacred activity.

 

“Social media is the ultimate equalizer. It gives a voice and a platform to anyone willing to engage.” – Amy Jo Martin

Hypothesis: There is no value in outsourcing your recruitment.

Do you use a recruitment agency or a headhunter? We’re going to put an end to that and see if it makes any difference.

External recruiters, like most brokers, are the product of information asymmetry. You assume that they have access to better information than you so you pay for that information.

But the internet has made the world flat, we just need to know where to look and how to make it easy for people to find us. You can share your job ad on every social network and ask your own personal and professional network to refer people. Reaching people has never been easier.

If you incorporate hiring hack #1, you won’t need to worry about deciding who to interview, a service traditionally performed by recruitment agencies. All you need to do is get your job in front of enough eyeballs, which is pure marketing.

Now, here’s the real hack. Work out the commission you would have paid the recruitment agency. Let’s say it’s a 20% fee and the role pays $100,000. Now spend every cent of the $20,000 you saved on promoting your job on every major job board, industry board and social network.

Is it money well spent? How many applicants did you get? What about for $2,000? What about for $200?

Sound insane spending that much money to get access to candidates who will all automatically be interviewed anyway? There’s your answer.
Hiring Hack: There is no value in outsourcing your recruitment. Click To Tweet

Hiring Hack #3: Expert Questions Are Better Than Yours

Expert questions are better than yours.

 

“The art and science of asking questions is the source of all knowledge.” – Thomas Berger

Hypothesis: Other people ask better interview questions than you.

Wait, what?

If you’re running a business, there is a good chance you’ll have to hire someone into a role you’re not an expert in.

Next time you’re trying to hire someone, use interview questions written by an expert instead of your own. To learn more about how to hire for a role you’re not an expert in, read this.

If you want to do it all online, you can easily choose an interview script from Vervoe’s library.

But the concept is equally applicable offline. Call a friend who’s an expert and pick their brain on how they would hire for the role. Then create a process that aligns with the expert’s recommendation. If the expert thinks the best way to hire a chef is to spend a day in the kitchen together, then that’s what you should do. Speaking of cooking, here’s an omelette story that illustrates this exact point.

You can A/B test within the role itself by randomly interviewing half the candidates using your own questions and half using an expert’s. But I suspect the benefits will be evident even before candidates do the interviews. You’ll know from the quality of the questions whether the expert is improving your approach.
Hiring Hack: Other people ask better interview questions than you. Click To Tweet

Hiring Hack #4: Don’t Ask People to Fit In

Don’t ask people to fit in – cultural fit is overrated.

 

“Culture is the widening of the mind and of the spirit.” – Jawaharlal Nehru

Hypothesis: Cultural fit is overrated.

Talking about your company’s vision, values and culture in your job description is a great way to proactively qualify candidates.

However, instead of asking people to fit in with your culture, look for people who will add to your culture. Ask for cultural contribution and look for people who can improve your team’s cultural fitness.  

The result of this experiment can only be verified after several months of working together. But you’ll see glimpses during the hiring journey. Encourage candidates to tell you what they’ll be bringing to the table. Get creative with your interview questions. And more of all, be open to being challenged.
Hiring Hack: Cultural fit is overrated. Click To Tweet

Time to Start Experimenting

What you do with the results of each experiment is up to you. But I guarantee you’ll learn a lot about hiring and gain insight into the mindset of your candidates, and perhaps even your own.

Let me know how it goes.

Data Science, Startups

Engagement: The Key to a Data Driven Culture ft. @UseNotion

Image created by Yasmine Sedky (@yazsedky).

A “Data-driven culture” is what so many businesses aspire to be. They think that if they have the data, organize the data, and use the data to make decisions, that they will automatically infuse it into the very fibers of their corporate culture.

If only it were that easy.

Yes, obtaining data and organizing it may be the first necessary steps towards creating a “data driven culture,” but unless you can get your team excited about using that data – it’s close to worthless.

Having a data-driven culture means that everyone – not just analysts, product managers and marketers – understands the data you’re collecting, can find the data you’ve collected, and knows how to use that data to improve and optimize their work. And, of course, it’s not about your team just knowing how to use the data, but feeling empowered, encouraged, and even excited to make data an integral part of their work.

For that to happen, employees need reasons why adding data to their lives will make their work easier and get them better results.

But, engendering enthusiasm can be an uphill battle, especially if your mountains of numbers tend to scare people away.

Read More on Notion


Let’s Get SaaSsy – I’m offering a limited number of SaaS consulting engagements.

Startups

The Lean Startup Way to Fail ft. @AshMaurya

Image created by Yasmine Sedky (@yazsedky).

The road of progress is paved with failures – that’s not a quote; in fact, I made it up – but when you’re talking about Lean Startup methodology, it’s nevertheless true. If we don’t fail, we can’t grow, which makes failure actually very exciting, and something we encourage. Failures force us to question our convictions, and possibly discard them to make way for new ones that work more effectively.

When you think of failure that way, it’s not so bad. But, it also opens the door to the possibility that:

You’re doing failure wrong

In Scaling Lean: Mastering The Key Metrics for Startup Growth, author Ash Maurya (also author of Running Lean and creator of Lean Canvas) talks about the right way to deal with failure so you can reap the most benefits from what appears, at first, to be a significant setback.

“Can you find the common theme across these discoveries: penicillin, microwave, X-ray, gunpowder, and vulcanized rubber? . . . In each of these cases, the inventors were seeking a specific outcome and instead got a different outcome. But instead of throwing away their ‘failed’ experiments, they did something very different from most people: they asked why.”

As Maurya points out, Lean entrepreneurs today don’t fail, they pivot – but if pivoting means rushing to correct course, instead of examining the cause of the failure, you’re doing it wrong. In fact, pivoting  might not be the best response at all. Only through careful, collaborative analysis can you determine whether to persevere with your hypothesis, pivot your strategy to reach your goal by different route, or chuck the idea altogether.

Whichever route you choose, you’ve been given an opportunity. When a hypothesis doesn’t hold true, you have the ability to learn things about your customers that you never would have otherwise – by asking “why?” (a lot).

“Why?” lets you dig deep into the reasons far below surface assumptions. The “5 Whys” exercise developed by Toyota Motor Corporation can be a useful tool after just about any failure, crisis, setback, or experiment.

Read More on Notion


Let’s Get SaaSsy – I’m offering a limited number of SaaS consulting engagements.

Startups

Build, Measure, Learn, + Communicate ft. @LauraKlein

build-measure-learn

Image created by Yasmine Sedky (@yazsedky).

Build, measure, learn. They’re the fundamental building blocks of Lean Startup methodology. Critics equate this 3-part cycle with tossing half-baked products to consumers to see if they work – a mistake easily made if you don’t fill in the spaces between Build – Measure – Learn with a little common sense and a lot of communication.

But first, let’s clear up a miscommunication. This isn’t simply about building a product. It’s about a lot more than that.

The goal of Build, Measure, Learn isn’t to build a final product, or even a prototype. It’s to learn as much as possible about your target audience, their pain points, price points, and possible solutions through incremental, iterative engineering. The value of approaching product development this way, rather than the waterfall model (in which a set of requirements leads to product design, followed by implementation, verification and maintenance), is that the product develops as a result of customer feedback from the beginning, rather than developing the product before sending it to Alpha and Beta testing.

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