MODULE 5

KNOW WHO: IDENTIFYING CUSTOMERS

IDENTIFYING CUSTOMERS
 identify the right
customers for their
startup.
At the end of this video
lecture you will be able to:
know the
customers of their
startup.
https://www.convergehub.com/
The more you know about your customers, the more
effective your sales and marketing efforts will be. It's well
worth making the effort to find out:

who they are

what they buy
why they buy it
• You can learn a great deal about your customers by
talking to them. Asking them why they're buying or not
buying, what they may want to buy in the future and
asking what other needs they have can give a
valuable picture of what's important to them.
• Strong sales are driven by emphasizing the benefits that
your product or service brings to your customers. If you
know the challenges that face them, it's much easier to
offer them solutions.
It's also well worth keeping an eye on future developments in
your customers' markets and lives. Knowing the trends that
are going to influence your customers helps you
to anticipate what they are going to need - and offer it to them
as soon as they need it.
• You can conduct your own market research and there are
many existing reports that can help you build a picture of
where your customers' markets - and your business - may
be going.
https://www.drinkpreneur.com/beverage-howto/why-do-you-
need-to-know-your-customers/
https://www.youtube.com/watch?v=q1aXKl18QY0
http://www.brainfitnessinternational.com/why-they-buy
https://nohat.cc/f/shopping-during-sale-free-stock-vector-
450077/comrawpixel450077-201907190659.html
https://world.edu/5-things-buy-online-2018/
https://www.cnbc.com/2015/07/21/just-how-much-cash-does-
apple-have.html
https://portshoppingspree.com/feel-good-shopping-buying-
from-companies-that-give-back/
http://www.customerexperienceinsight.com/manage-
unreasonable-customer-expectations/
https://www.marketingideasforprinters.com/2018/03/28/find-
customers-thinking/
https://empresa-journal.com/2015/11/10/market-intelligence-
how-to-successfully-profile-your-competitors/
CUSTOMER VALIDATION
 plan on how to
conduct customer
validation.
At the end of this video
lecture you will be able to: conduct an actual
customer validation
of problem to be
solved.
• Customer validation is the phase of the customer
development model where you obtain hard evidence
regarding the possible success of your startup idea.
• You cannot just assume that customers will buy your
product – even if they tell you they might! Dealing in
hypothetical scenarios does not help you affirm whether
you have a solid business idea. This is why you must
validate all of the information that you think you know.
• Customer validation proves whether your assumptions are
correct before you spend too much money. This is
essential for the process because it is what sets it apart
from any other type of development model.
• Customer validation helps you avoid building a product
that no one wants. This is because it forces you to get out
of the building and talk to real customers.
• Another key benefit of the customer validation step is that
it allows you to change your methods early. Iteration is key
in this model and it is okay to get it wrong.
You should avoid market forecasts during the validation
process. Many forecasts are based on assumptions. In
the validation process, you are trying to avoid
assumptions in favor of hard data.
You also need to validate the problem. The problem is at
the heart of the validation process because potential
customers would come to you to solve their problem.
Solving a problem that is important to your market is what
the success of your business is all about.
Finally, you need to validate your product. This is the last
thing that you should do because finding your market and
solving a problem has less to do with your product and more
to do with establishing the need for your product.
Customer validation doesn’t guarantee success, but it’s
the easiest and lowest-cost way to reduce risk for new
products.
1. Start your customer validation process as early as
possible.
2. Learn What Your Customer Personas Want
3. Make your interviews long enough to count.
4. Conduct enough interviews to get an accurate sense of
your potential market.
5. If possible, speak to prospective customers face-to-
face.
6. Do the research ahead of time to ensure you’re
interviewing the right person.
7. Let the customer do the talking. When you do talk, ask
questions.
8. Don’t present your product or solution too early on in
the validation process.
9. Use the buddy system for interviews and document
your findings.
10. Ask open-ended questions that focus on problem-
solution relationships.
In Conclusion, Win the Buyer
First, Then Win the User.
• https://www.infoentrepreneurs.org/en/guides/know-your-customers--
needs/#2

• https://www.productplan.com/customer-validation-interviews/