Customer Development

Björn Ühss, b@22tribes.com, Founder & CEO

www.22tribes.com
Know Your Assumptions
+
Get Out Of The Building
 Launched SaaS
QuickBooks Online in 150+ countries

Founder 22 tribes.com
Marketing & Innovation Agency

Aflorithmic.ai Hyper-Personalised
Audio Generation Platform
“Wix/Squarespace for Audio”

Björn Ühss
Customer Development
= structure approach to build a new startup/venture
1. How do you identify real customers and ensure they have a real problem to solve?
2. What are the best tactics to identify target customers, encourage them to be interviewed?
3. How do you know if people are telling you the truth, or just being polite? → gain evidence
4. How do you identify and test your assumptions in a customer interview? → map early on!
5. How do you process and respond to feedback from customer interviews? → in/validate
6. How do you know when you are focused on a good idea or when you need to abandon an
idea? → Traction
Know Your Assumptions
Dream Job?
90%
Dreams startups
fail
Test earlier

WebVan
Better Place
Nokia
Kodak
Blockbuster
Invest more time putting your solution idea in front of customers and
experiment. Fail = In/validate = Learn (hopefully!)
 Don’t underestimate the potential of your idea
(and the impact on yourself)

It will be hard. Push through - if you believe in your idea. You cannot believe
how long and full of obstacles it will be.
What really matters in the beginning
… “Massive market potential”
but do you have 1 customer already?
Few loyal active customers
beats > theoretical business plan
… “I love your idea”
but do you pay for it?
Traction on small scale
(e.g. first paying customers)
will help you pitch for big
money / investment
… “360* / All-in One / holistic solution”
but do you have anybody using it, again?
…Show & Demo before you code all
(e.g. InVision, demo/explainer video, Mock-Up,
Unbounce Landing Page)
Focus on what matters
(to your business)
The CUSTOMER
Invest less time in Vanity Metrics* and premature development.
Invest in Testing and get your 1st 5 customers

*Social media follower, meetings, employees, hours worked

1 - Start With Your Assumption

What is it you THINK / BELIEVE.

Write it down.
And always come back to it.
Tick/check
Or just a simple list...
A startup idea is
comprised of 3 parts.
Problem
worth solving

Value
proposition

Solution Customer
that is feasible willing to pay
All Assumptions! Test Test Test
 Assumption Pyramide - Hypothesis to validate Experiment in Work

Invalidated

Validated
We believe, we can...

s
Launch + … launch … in the (and other markets) and make it profitable within X

es
Biz Model months, by….

sin
Bu … creating a new Brand
… launching a new product & features (mattress + other + Configurator
New New New
… developing a configurator & meaningful ersonalised experience
Market Product Channels
… filling the showroom with excited, referring and converting customers

Set up marketing channels and test their efficiency

FB Remarketing Google Offline Display Trafficjunky (TJ) - Adwords - Facebook (FB) - Universal Ads -
g

Display ...
in
t
ke

GIs there enough search volume?

Search Leads Qualification Configurator
ar

Can we collect early emails

Emails Segmentation Engagements
M

Can we qualify and segment them further?

At what cost can we get them use the configurator
Channel Tests Value Story / Creatives In-Store
Which channel is effective and with what message / creative
Cost-Per-Channel Propositions A/B Testing
What Value Proposition, Reason to Believe, Story, Why works best
ct

Can we
du

… get users to engage with Configurator? (Awareness/Availability)

Awareness >> Availability >> Install >> Activation >> 1st Use >> Retention >> Referral … x% User engage Y min with configurator / Web until Step (Activation)
o
Pr

Revenue … x% User come back to web for re-engagement (First Use)

… x% add to shopping card (Retention)
… x% purchase mattress? (Referral)
Or just a simple list...

Customers will .. (do xyz)

Get Out Of The Building
2 - Get Out Of The Business
 What’s your riskiest assumption?
“Would people buy a healthy energy drink?