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Interpreting the customer

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Materials of the MERLIN (https://merlin-ict.eu) workshop 'Interpreting the Customer'. MERLIN will support market-oriented researchers, SMEs and startups across Europe, to consider the full potential of their research and to shape ideas and outputs into innovations to be ready for market validation and commercialisation, by using modern needs-first, market-led methodologies and offering free training workshops and meetup in 7 European countries.
More information in video https://bit.ly/merlin_video

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Interpreting the customer

  1. 1. H2020 GA #780460 INTERPRETING THE CUSTOMER FACILITATOR NAME Location Date Helping today’s researchers create tomorrow’s enterprises This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 780460
  2. 2. H2020 GA #780460 Rules for the workshop š No question is a silly question 2 š What is said in the room stays in the room š Support and challenge each other
  3. 3. H2020 GA #780460 General information š Workshop length – 4 hours 3 š Coffee break – 20 minutes š Slide availability
  4. 4. H2020 GA #780460 About MERLIN project 4 MERLIN project aims to stimulate the interest in the creation of startups, spin-offs and licensing agreements among ICT researchers, providing them with the business skills that would help them to commercialize their research findings and successfully introduce them to the market, and introducing them to their local and European entrepreneurialecosystems https://merlin-ict.eu Organization of more than 40 practical thematic workshops in several European cities, including Cambridge, Madrid, Poznan, Vilnius, Berlin, Warsaw, Bucharest, Tallinn Participation in 5 international conferences, organizing workshops and forums Organization of 8 meetups with potential customers, commercial partners, and investors Preparation of 4 webinars on SME growth and PPP business models
  5. 5. H2020 GA #780460 Titanic 5 • The ship has just hit the iceberg • The engines are still working but they can stop at any minute • The ship will sink in 2 hours and the crew is aware of this. • The nearest rescue boat is 2 hours away • There is enough space on the life-rafts for 1178 people but there are 2224 on board • In the North Atlantic, a person can survive 4 minutes • You are four crews: kitchen, kitchen, dining room, cabins, engine room.
  6. 6. H2020 GA #780460 Agenda 6 You and your tech Innovation and the Customer Collecting the inputs – Customer Discovery interviews Introduction to the Jobs-to-be-Done Developing a ‘jobs map’ Constraints and criteria
  7. 7. H2020 GA #780460 7 Your idea and your tech
  8. 8. H2020 GA #780460 My value proposition For ____________ (target customer) who ____________ (statement of the need or opportunity) our (product/service name) is ____________ (product category) that (statement of benefit) ____________ 8
  9. 9. H2020 GA #780460 9 Innovation and the customer
  10. 10. H2020 GA #780460 Let’s talk about ‘innovation’ 10 Break-through DisruptiveIncremental
  11. 11. H2020 GA #780460 Let’s talk about ‘innovation’ 11 Break-through DisruptiveIncremental
  12. 12. H2020 GA #780460 Ideas-first vs Needs-first 12
  13. 13. H2020 GA #780460 Segmenting the market 13 1950 1960 1970 1980 1990 2000 2010 Demographics Psychographics Purchase behaviour Needs Motivations ??
  14. 14. H2020 GA #780460 Segmenting the market 14 Traditional Segmentation Innovative Segmentation Age Location Gender Disposable income Circumstance Attitudes Motivation Opinions Wants/Needs
  15. 15. H2020 GA #780460 Using personas 15
  16. 16. H2020 GA #780460 Using personas 16
  17. 17. H2020 GA #780460 The Blackberry 17
  18. 18. H2020 GA #780460 The Blackberry – 1990s 18 Product View Demographic View Circumstance Market Definition The handheld wireless device market. The travelling sale-person Use small snippets of time productively Competitors Palm Pilot, HP Jordana, Nokia phone. Notebook computers, wireless internet, telephones, mobiles. Mobiles, Wall Street Journal, BBC, meetings, staring into space. Features to Consider Digital camera Microsoft Office Phone Organizer Handwriting recognition Wireless Internet Downloadable CRM Data Access to online travel agencies Online stock training E-books and technical manuals Email Phone Email Voicemail Phone Headline news Simple games (e.g. Snake) Entertaining lists Always on Source: adapted from ‘The Innovator’s Solution?
  19. 19. H2020 GA #780460 19 Customer Discovery – Collecting inputs
  20. 20. H2020 GA #780460 Customer Discovery Cycle 20 Phase 2: Test problem hypothesis Phase 3: Test product concept Phase 4: Verify Phase 1: State hypothesis EXPLORE PROPOSE CHECK THINK
  21. 21. H2020 GA #780460 21 Customer Discovery AIMS ACTIVITES OUTPUTS • Identify if there is a problem • Identify who is the customer • Identify the market • Hypotheses construction • Customer Interviews • Experiment design • Product design • Initial business model • Customer needs • MVP • Problem-Solution Fit
  22. 22. H2020 GA #780460 22 “The goal of Customer Development is not to collect features from customers. It’s to understand what not to ship.”
  23. 23. H2020 GA #780460 Problem Interviews 23 Be relaxed Do it in pairs Have an introduction and structure Follow the flow Have a close Stick to the script Avoid probing Interrupt Forget to take notes Leave without asking for follow-up
  24. 24. H2020 GA #780460 24 Questions? Open Closed Leading • Long answers • Provides reflection and feelings • Begin with Describe, How, What, Why • Hand control over • Yes/No/ One-word answers • Provides facts • Retains control • Confirmation of understanding • Provide desired answer • Impose the interviewer bias • Avoid! – not sales meetings The questions you ask, determine the answers you get
  25. 25. H2020 GA #780460 Open to the world š Would you use a dashboard to monitor your sales team’s targets? š Describe the main problems you encounter when trying to manage your team? š Would you buy a toy that helps your children to learn new languages? š Do you think that business intelligence dashboards are difficult to understand? š What type of car would you pick for your commute to work? š How do you buy services? š Would you choose a subscription or once-off payment? š Why do you think that happens? š Who makes a good product? š Do you like making higher returns? 25
  26. 26. H2020 GA #780460 The present is terrible 26 Ask about how someone would behave, they will give you their Ideal/Imagined Self Past behaviour predicts future, Ask about a previous event to understand the Real Self
  27. 27. H2020 GA #780460 The anatomy of the interview 27 Intro The Person The Problem Processes Outro Tell me about your role? How does that process work now? What are the top 3 issues you encounter? How does your company purchase software? What do you look for in a solution? Can I call you to follow-up on some of the topics? I’m looking to develop a solution for Sales Teams e.g.
  28. 28. H2020 GA #780460 Probing š Why? š Tell me more. š When was the last time that you encountered this problem? š What caused the problem? š What did you do to try and fix it? š How much time do you have to spend on work arounds? 28
  29. 29. H2020 GA #780460 29
  30. 30. H2020 GA #780460 30 Extracting needs
  31. 31. H2020 GA #780460 What is a need? 31 “The bases of selling of any product is its need, thus no matter how good the product and service is, the customers won’t buy it if they don’t feel the need. Thus in order to sell a products a marketer needs to identify the specific needs of the customers and clearly understand their wants. If the seller understands the needs then he will be able to persuade the customers to buy their product.” www.mbaskool.com A need is an opportunity to deliver a benefit to a customer. www.pragmaticmarketing.com A need is a desire that causes a customer to buy a product. If customers buy products to satisfy needs, then needs provoke customers to buy products.
  32. 32. H2020 GA #780460 What is a need? 32 Solution Design Specification Characteristic Benefit
  33. 33. H2020 GA #780460 What is a need? “People don't want to buy a quarter-inch drill, they want a quarter- inch hole” Theodore Levitt 33
  34. 34. H2020 GA #780460 Essential reading 34 +
  35. 35. H2020 GA #780460 Prioritize the opportunities The steps to better innovation 35 Define the context Identify the Jobs-to-be- Done Ideate and prioritize Segment the market
  36. 36. H2020 GA #780460 What is a job-to-be-done? š Defines the function or emotional purpose behind an action š They are goals and objectives that people want to accomplish or what they are trying to prevent š Jobs are the basic currency of a ecosystem. š Each member is trying to get a job of some form or another done. š The customer is only hiring your product or service to get these jobs done. 36
  37. 37. H2020 GA #780460 37 Structure of the jobs? Focal Related Emotional • The core functional job that they are trying to achieve. • Other functional jobs they are trying to achieve in the same context. • Personal or social jobs
  38. 38. H2020 GA #780460 Personal How they want to feel Social How they want to be perceived Emotional Jobs 38
  39. 39. H2020 GA #780460 39
  40. 40. H2020 GA #780460 Anatomy of a Job-to-be-Done 40 Maintain optimal conditions during production Object of Action Contextual ClarifierVerb Maintain optimal production conditions without intervention Verb + Object of Action + Contextual Clarifier
  41. 41. H2020 GA #780460 Jobs and innovation 41 Devise product or service innovations that help customers get more jobs done – often related jobs Devise product or service innovations that help new customers do a job that nobody is doing yet; no product currently exists Devise product or service innovations that help customers get a job done better Devise product or service innovations that help customers do a job that others are already doing NewJob(s)CurrentJob(s) Existing Customer New Customer Source : Ulwick, A. What Customers Want: Using Outcome-Driven Innovation to Create Breakthrough Products and Services. New York: McGraw-Hill, 2005.
  42. 42. H2020 GA #780460 42 Jobs Map
  43. 43. H2020 GA #780460 The Jobs Map 43 Scenario: FOCAL JOB Constraints Criteria Related Functional Jobs Emotional Jobs Job Step 1 Job Step 2 Job Step 3 Job Step 4 Job Step 5 Job Step n Customer:
  44. 44. H2020 GA #780460 44 Constraints & Criteria
  45. 45. H2020 GA #780460 Constraints 45 Human Environmental o Mental o Skills o Cultural o Social o Economic o Legal o Regulatory o Administrative o Geographical o Technical o Political
  46. 46. H2020 GA #780460 Criteria 46 The criteria enables the understanding(before design phase) what the customer values when there are selecting a solution Functionality Service Quality Cost o Conditions in which it will be used o Raw materials o Upgrading o Useful Life o Purchasing option o Distribution o Post-sales o Maintenance o Durability o Manufacturer reputation o Usability o Environmental Impact o Upfront cost o Other cost (supplies, etc.) o Maintenance o Updating
  47. 47. H2020 GA #780460 Homework for everyone 47 • https://medium.com/make-us-proud/jobs-to-be-done-framework- 748c761797a8 • https://blog.mailchimp.com/new-mailchimp-user-persona-research/ • http://customerthink.com/the-fundamentals-of-jobs-to-be-done- theory/ Internet Resources • Ulwick, Anthony W. "Turn customer input into innovation." Harvard business review 80.1 (2002): 91-7. • Christensen, C. M., and M. E. Raynor. The Innovator's Solution: Using Good Theory to Solve the Dilemmas of Growth. Watertown, MA: Harvard Business School Press,2003. • Ulwick, A., and L. A. Bettencourt. "Giving Customers a Fair Hearing." Sloan Management Review, 49, no. 3 (2008): 62--68. • Christensen, C. M., S. D. Anthony, G. Berstell, and D. Nitterhouse. "Finding the Right Job for Your Product," MIT Sloan Management Review, Spring 2007 2— 11 • Ulwick, A. What Customers Want: Using Outcome-Driven Innovation to Create Breakthrough Products and Services.New York: McGraw-Hill, 2005. Articles & Books
  48. 48. H2020 GA #780460 Reflection š Today I learned… š I was suprised by... š I will use... 48 Go to XXX #YY
  49. 49. H2020 GA #780460 Info about next workshops in CITY 49 2018 April Lean startup 2018 June Using Business model canvas to assess and focus business development 2018 September How Customer Discoveryguides business models 2018 October Client match- making meetup 2019 February ’I Bring the Idea’ matchmaking session 2019 May How to design a product using User Experience 2019 June How to conduct interviews and receive customer inputs 2019 July Spinout vs Startup – differences, how to operate and succeed
  50. 50. H2020 GA #780460 GET OUT AND ASK THE RIGHT QUESTIONS! 50 https://merlin-ict.eu @Merlin_ICT

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