1. Class 4
ICS 2014
How to Build a Startup
Hablemos con Clientes desde el Día 1
Customer Development
With the Support of:
www.realstarters.com
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2. INDEX
PARTE 1 PARTE 2
• Dónde estamos? • Presentación #1-
• Customer Development
• Discovery
Gonzalo Saieg
• Validation • Ing. Civil Industrial, MSc
• Cust. Creation • Emprendedor (2 años)
• Company Creation
• Tema: “ Oportunidades
• Discovery para Emprendedores en
• Entrevista del Problema el Diseño de Productos”
• Status Grupos
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3. 0_DÓNDE ESTAMOS
Qué hemos visto hasta ahora?
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4. • Distintos caminos en la vida
Clase 1- Qué es • Emprender el camino arriesgado
Emprender • Por qué ahora?
• Algunos Paradigmas (Dinero, Idea, etc)
• Fallar en nuestra sociedad
Clase 2- Miedo a • La importancia de fallar temprano y seguido
Fallar • Que es un MVP
• Qué es un PIVOT
• Disruptive technology
Clase 3- Generar y • Diferencia entre idea y oportunidad
Compartir ideas • Cómo generar y filtrar ideas
• Ejecución & Canvas
• Framework de trabajo
Clase 4- • Qué es y qué no es?
Ejecución, CustDev • 4 pasos ; Discovery & Validation
• Entrevistar a clientes

5. 1_CustDev
Origen
Qué NO es?
Qué ES?
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6. ENTENDIENDO LA
METODOLOGÍA
Algunos conceptos clave
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7. #1 Origen
Steve Blank’s experience:
“distilled from things I got
right, and things I screwed
up,” as well as by his
observations of the practices
of successful companies.
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8. #2 Early Adopter/Evangelista
EL ABISMO!!!
Source: The Entrepreneurs’s Guide to Customer Development, Brant Cooper & Patrick Vlaskovits , 2010 / Crossing the Chasm, Geoffrey A. Moore, 1991
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9. Early Adopters
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10. #3 Segmentación
La práctica de dividir una porción grande del
mercado en grupos identificables más
pequeños, que se caracterizan por compartir
necesidades especificas y se referencian entre
ellos
Source: The Entrepreneurs’s Guide to Customer Development, Brant Cooper & Patrick Vlaskovits , 2010
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11. Segmentación
• Moore’s Crossing the Chasm -> elegir un
segmento y establecer el “punto de
desembarque en la playa”
• Incluso atacando múltiples segmentos al
mismo tiempo es más barato hoy en día->
• Apegarse a un segmento maximiza los
beneficios de la segmentación
11

12. Case
Source: www.jawbone.com
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13. Dif. Tipos de Mercado
Mercado
Mercado Existente Mercado Nuevo
Resegmentado
RÁPIDO NICHO/MKT > RIESGO
Source: Steve Blank, www.steveblank.com

14. Dif. Tipos de Mercado
Source: Steve Blank, www.steveblank.com

15. Dif. Tipos de Mercado
Source: Steve Blank, www.steveblank.com

16. Product Development
Source: Steve Blank, Four Steps to the Epiphany 16

17. AHORA SÍ, CustDev
4 pasos, 2 que importan
ahora
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18. • Un framework de 4 pasos que permite descubrir y validar que:
- Hemos identificado un mercado para nuestro producto
- Hemos construido un producto o servicio con características
que atacan necesidades reales
- Tenemos los métodos correctos para adquirir y convertir
leads en ventas
- Hemos desarrollado los recursos necesarios para escalar el
negocio
The Entrepreneurs’s Guide to Customer Development, Brant Cooper & Patrick Vlaskovits , 2010
18

19. CustDev
Source: Steve Blank, Four Steps to the Epiphany

20. CustDev
Discovery El producto resuelve un problema para un grupo
identificado de usuarios
Validation Podemos vender el producto a un mercado lo
suficientemente atractivo
Cust. Creation El modelo es escalable a través de un plan de ventas y
marketing
Com. Creation Los departamentos y procesos operacionales son
creados para escalar el negocio
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21. CustDev (más aterrizado)
• Customer Development es acerca de cuestionar
las suposiciones del “core” de nuestro modelo de
negocios
• Cada bloque es una Hipótesis (método científico):
– Observar y describir el fenómeno
– Formular una hipótesis para explicar el fenómeno
– Usar la hipótesis para predecir resultados de futuros
eventos
– Medir la predicción basada en tests experimentales
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22. CustDev
PIVOT

23. Discovery & Validation
• Do you have a problem worth Solving? • Have you built something
– Hypothesis statements
• Business Model Canvas customers want?
(input) – MVP Experimenting
– Customer Interviews – Product/Market fit testing
• Preparation
• Problem Interview
• Solution Interview

24. Customer Discovery
Problem / Solution Fit

25. Discovery
• Meta: Comprobar que el producto resuelve un
problema para un grupo identificado de
usuarios
• Darnos cuenta si vale la pena solucionar este
problema ($$)
25

26. Cust. Discovery tasks
Source: Ash Maurya, Running Lean, 2010

27. Task#1 Discovery- Multiple Canvases
(done)
Objective:
– Document what is in our mind (hypotheses)
– Document customer`s feedback on the
hypotheses we have (pivoting if necessary)
– Common language

28. B.M. Canvas
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29. Lean Canvas
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30. Task#2 Discovery- Interviews
Preparation
Objective:
– Get ready to start interviewing real customers
– Select first potential customers (in the market
segment you decided to attack)
– First approaches to the customer channels
– Decouple the problem from the solution and test
the problem before binding yourself to a solution

31. Task#2 Discovery- Interviews
Preparation
• B2C: Find at least 10-15 prospects for a 2
weeks interview period (1 week)
• B2B: Find between 5-10 prospects for a 2
weeks interview period (1 week)
• These prospect customers will be used to test
your business model canvas hypotheses
• Prioritize where to start (which customer in
my segment is more interesting?)

32. Task#2 Discovery- Interviews
Preparation
• How to find prospects?
1. 1 Degree contacts
2. Ask for Intros
3. Cold Calling, Emailing, LinkedIn
4. Move around the Industry (e.g. Events, trade
shows, Meetups, etc)
• Don’t be shy!

33. Intro email
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34. Task#3 Discovery- Problem Interview
Objective:
– Know which problem is worth solving for the
customer (Talk to customers to understand their
worldview before formulating a solution)
– We want to answer:
• Customer Segments: Who has the pain? (Early
adopters)
• Problem: What are you solving?

35. Task#3 Discovery- Problem Interview
We will test top 3
hypothesis on:
– Problem
– Customer
Segments
– Current problem
solutions

36. Task#3 Discovery -Problem Interview
Source: Ash Maurya, Running Lean, 2010

37. Task#3 Discovery- Problem Interview
• Ask sufficient time (20-30 mins)
• Use neutral location / prefer face to face
• Do not record the customer
• Use a script (flexible)
• Document immediately

38. RESUMIENDO
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39. Resumiendo
Framework, not a path for
Key Concepts
success (less risk)
Ocupar CustDev en
mi idea- Discovery
Prepare your customer’s
First step, validate the problem
interviews
39

40. STATUS DE
EQUIPOS
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41. SPEEDATING
How was last week?
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42. PEDIDOS SEMANA PASADA
1. Postear en el blog el proceso de creación del
canvas y su resultado
2. Crear la propuesta de valor
Mi producto X soluciona el problema Y para el
cliente Z, haciendo W
3. Cada proyecto debe tener un logo!
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43. PEDIDOS SEMANA #5
1. Encontrar prospectos para las entrevistas
2. Entrar al nuevo blog común
3. Postear resultados de la búsqueda de
prospectos en el blog
4. Actualizar canvas (lean canvas)
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44. 44

45. EXTRA
CANVAS STEPS AND
EXAMPLES
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47. 1. Walk up
2. Touch screen
3. Takes four photos
4. Prints photo strip
5. Live streams the photos to an in-
room projector and/or website

50. Key Key Value Costumer Costumer
partners activities proposition relationships segments
Live- Makes
Stream events Social Media Events
Sponsors for
booth Photos more fun
Electronics Print Branded Direct
Photostrips Venues
Memories Marketing
on-site
Manufacturers Follow
Events Production
Key resources Live Channels Companies &
Ad agencies
Printer Supply Booth
Deep
Companies Electronics Production
Brand Wedding
Simple Interaction Companies Sites
Enclosure & Agencies
Word of Transport by
Custom Sales People
SW Mouth
Cost structure Revenue streams
10% to
Fixed Printer execute the
deal Rental Booth Sale
Supply Cost
10% to close Up-Sell
the deal
www.businessmodelgeneration.com

51. Key
partners
• Which partners and suppliers
leverage your model?
• Who do you need to rely on?
Sponsorship for discount on electronics in exchange
for "powered by ... " advertising.
Relationships with Manufacturer for bulk orders
Relationship with Printer supplier for repeat orders
www.businessmodelgeneration.com

52. Key
activities What are the most important tasks
your company performs to create
value?
The most important activity that we do is
print the photostrips on site for free to the
consumer and immediately upload them to
a projector or website for live streaming /
sharing of the event.

53. Key resources
• Which resources underpin your
business model?
• Which assets are essential?
• Booth Enclosure - Simple design that
can be replicated and transported
• Booth Electronics - Camera, Flash,
Touchscreen, computer, printer, printer
supplies
• Custom Software
www.businessmodelgeneration.com

54. Value
proposition What Benefits do you provide?
Your value proposition should speak in
terms of the customer's emotions rather
than your features. It will be at the heart of
both your elevator pitch and your sales
material
The benefit is realized by two segments: 1.
Owners & Event producers: Their events
are more fun for their guests. 2. Brands:
Branded memories on the photostrips, live
streaming of photos to social media sites.
The depth of brand interaction becomes
evident as people make the photos their
profile pictures and/or tag themselves.
www.businessmodelgeneration.com

55. Value
proposition Analogs
What other companies and products do we
want to borrow ideas and behaviours from?
How are they related?
We want to borrow from digital billboards.
The banner ad and the space on the screen
that is visible during print times are media
buying platforms. The latest trend in digital
billboards is to use computer vision to
identify characteristics of the person
passing by and then to create a targeted
advertisement to that person.
www.businessmodelgeneration.com

56. Value
proposition Antilogs
Which companies are we actively doing the
opposite of?
Old school photobooths. We don't charge
our guests. It's free for them, we charge the
brand and the owners.
www.businessmodelgeneration.com

57. Costumer
relationships • What are you offering them?
• What is it that is getting done for them?
• Do they care?
• We offer an experience to the user and
great depth of interaction to the club /
event owner (partners) and the brands
(customers)
• Brands are reaching their targets, Event
owners are producing a fun exp for their
guests
• They care, because the users care, and
the users care because it’s their photo
www.businessmodelgeneration.com

58. Channels
How do customers find & buy our
product?
How will you reach customers and harvest
demand? Direct sales, TV ads, blog &
social media PR, SEO, retail presence?
Weddings: Through wedding sites
(e.g., novio mingos), wedding production
companies, social media, and word of
mouth. Events: Through event production
companies, direct sales marketing to club
owners. Brand: Media buying agencies
(e.g., OMD, Omnicon) or Ad agencies
(Lowe Porta, Chiat Day)
www.businessmodelgeneration.com

59. Channels
Sales or acquisition funnel
Describe your customer acquisition funnel.
What are the stages of intent a new
customer goes through and how do you
move them from curiosity to purchase
decision?
1. We want them to use the booth
2. We rely heavily on the booth experience.
3. We also use the website. We have
photos from past events and a video of the
booth in action.
www.businessmodelgeneration.com

60. Channels
Who are our distribution and sales
partners?
Who will we need to partner with to deliver
our product through these channels?
We function as a hub. Parts come to us
from the suppliers and we distribute them to
the clients.
The booths are directly transported by the
sales people.
www.businessmodelgeneration.com

61. Costumer
segments Who are we selling to?
Your customer segments (you might have
several!) are the groups of customers who
share similar behaviors and buying habits.
The more specific you are, the easier tough
product choices will be, since you'll know
exactly who you're trying to help.
1. Events: Weddings, birthday parties,
dances, etc.
2. Venues: With this model we sell the
booth directly.
3. Production Companies (product is paid
for by the brands as sponsors)
www.businessmodelgeneration.com

62. Costumer
segments Earlyvangelists
Where within that segment will you find your
very first customers, who will pay for a
buggy product and still sing its praises to
their friends & colleagues?
Weddings & Clubs. Because we are first
and are new. They will pay for the product
because no one else can provide this
service.
www.businessmodelgeneration.com

63. Costumer
segments Purchase decision
Who is involved in making a purchase
decision? Identify each person as a
user, influencer, recommender, economic
buyer, or decision maker.
Budget
How are funds allocated for this type of
purchase?
Current workflow
Describe the customer's daily life and work-
flow without your product. What do they
spend their time doing? Which tools do they
use?
www.businessmodelgeneration.com

64. Costumer
segments Future workflow
Describe the customer's new work-flow
once they've purchased and started using
your product. How important is it to their
daily routine?
Other Problems
Ignoring what you are planning to build for a
moment, what other problems does the
customer have? What are the biggest pains
in their job, where does their company or
family lose the most money or time?
www.businessmodelgeneration.com

65. Cost structure
What is the resulting cost structure?
Which key elements drive your
costs?
www.businessmodelgeneration.com

66. Revenue streams
How do we make money?
Subscriptions, service, add-
ons, advertising?
We start as a service company and the money we
generate comes from event rentals
The future goal is to sell the booths to venues with
an additional markup.
www.businessmodelgeneration.com

67. Revenue streams
Specific pricing plans
What are the particular numbers behind
your revenue model?
Simple Rental: 450.000 CLP / booth
Full Activation: 1.700.000 CLP/booth
www.businessmodelgeneration.com

68. Revenue streams
How much is one customer worth?
What is the lifetime value per customer? For example, if
you sell a watch for $500 and the average customer
spends $50 a year for 5 years on tune-ups, your LTV is
$500+$50*5=$750
Since the product is currently being rented the value of each customer
can be seen at the cost of each rental. Although, since we are a first
mover there is implicit value in referrals. What we have seen thus far is:
Wedding customer is worth 900.000 (assume 1 referral / wedding)
Event customer (e.g. Lolla) is worth 1.800.000 CLP (assume 3 referrals)
www.businessmodelgeneration.com

69. Revenue streams
Total cost of ownership
How much does your customer need to budget to buy, own, and use
your product? For example, you might sell a car for $10,000, but your
customer also needs to consider insurance, parking, gas, and so on.
Everything is included in the cost of the rental…
www.businessmodelgeneration.com

70. Revenue streams
Return on investment justification
How much money/time/etc does will your product save a
customer? Ideally, the return a customer gets will be
greater than their total cost of ownership.
We provide a platform from which venues can make a return on their
investment through selling the advertising space on the photostrips. The
value of this ad space is very high as brands are reaching a specific
demographic at the event and through social media as the photos are
uploaded to facebook and are exposed to the social circles of those
guests.
www.businessmodelgeneration.com