1-01 - CUSTOMER DISCOVERY PRODUCT HYPOTHESIS

OBJECTIVES: WRITE DOWN INITIAL GUESSES ABOUT THE PRODUCT AND ITS
DEVELOPMENT
Step 1: Product Features
List the top 10 (or fewer) features with a one-sentence description of it.

1. Potable water from air

2. No feed water required to provide drinking water
3. Water anywhere, anytime
4. Indication of water quality
5. Emergency water supply
6. Mineralized water for drinking
7. Water supply for beverage manufacturer and water bottling plant
8. Invalidated (if any)

Discussion points, links ….

Step 2: Product Benefits

Describe the benefits the product will deliver to customers (new, cheaper, better, faster, …)
1. Best mineralized, quality drinking water
2. User makes water
3. Product reliability
4. New source of drinking water/lab water supply and other derived products (such as mineralized
water, rain maker, source for water storage for future demands)
5. Lower operational cost (market is 0.55 kWh/liter). We stand at 0.4 kWh/liter
6. Mineralized water
7. Standard water output independent of ambient conditions
8. Solar operated
9. Independent of piped water supply and electricity grid
10. IoT enabled device, power requirements varies as per ambient conditions
11. Can also serve as Water ATM’s
12. Customized air and water purification
13. No plastic wastage
14. Invalidated (if any)

Discussion points, links ….

Step 3: Intellectual Property

Assumptions about IP, technology bottlenecks, patents to be used or filed, ...
1. Advanced surfaces for efficient water collection
2. Water purifications materials
3. Refrigeration system design
4.
5.
6.
 7. Invalidated (if any)

Discussion points, links ….

Step 4: Dependency Analysis

Things out of our control that we will depend on to succeed (technology, market adoption,
usages…)
1. If unit operated on power grid, cost of an unit power in that area
2. Harsh air quality (can be taken care but will take time)
3. Higher cost of unit (1.7 Lakh onward for 100 liter per day atmospheric water generator (AWG) unit)
4. Competition / increasing competition
5. User adaptability/response for atmospheric water generators
6.
7. Invalidated (if any)

Discussion points, links ….

Step 5: Product Delivery Schedule

Prioritization of the shipping order of the different product features. If possible, give some
dates.
1. 100 LPD AWG unit prototype completion for pilot (Sep 2018)
2. 400 LPD AWG unit prototype completion Nov 2018
3. Solar powered AWG unit for 100 LPD Unit for piloting Dec 2018
4.
5.

Discussion points, links ….

Step 6: Total Cost of Ownership / Adoption

What’s the total cost the customer will pay to implement the solution, including training,
hardware, hiring people, etc.?

1. Approximate 1.7 lakh for 100 LPD unit

2. Approximate 3.2 lakhs for solar powered 100 LPD unit (right set of elite, B2B customer has to be
identified)
3. Space (Physical foot print for each unit)
4. Space for solar panel if, user is planning to buy solar powered unit
5. 3 Phase/Single phase power supply and power line testing (earthing is available or not, things
pertaining to electricity safety) at installation site
6. Tin Shade for unit, if unit is installed outdoor or rooftop.
7. Electricity safety
8. Basic training to user (for customers with larger units with solar panel, specific for battery storage and
solar panel maintenance)
9. ….
Cost is fact of life, Pricing is visual, and based value product imparts. Value depends of problems user have.
Professional salesman always talks of value, user’s problem, not price.
Discussion points, links ….
1-02 - CUSTOMER DISCOVERY CUSTOMER & PROBLEM HYPOTHESES

OBJECTIVES: WRITE DOWN ASSUMPTIONS ON WHO YOU THINK THE CUSTOMERS ARE,
AND WHAT PROBLEMS THEY HAVE

Step 1: Types of customers

Who are the decision takers? The buyers? The influencers? The end-users? Are there any
potential saboteurs?

1. Restaurants with large water consumption (Restaurants owner)

2. Business/customer concerned more about water quality
3. Type 3
4. …..
5. Invalidated (if any)

Discussion points, links….

Step 2: Customer Problems

what pain do customers experience? If customers had a magic wand, what would they
change? Are they latent or active needs? How deep is the need? Are customers already in
search of a solution?
1. Problem 1
2. Problem 2
3. …..
4. Invalidated (if any)

Discussion points, links….

Step 3: A day in the life or your customers

How do your customers “work”, or behave? How do the different types of customers spend
their days? Go out and talk to them!
1. Customer Type 1: Typical day
2. Customer Type 2: Typical day
3.

Discussion points, links ….

Step 4: Organizational map and customer influence map

Try to understand how your customers interact with other people and businesses. Find who
influences who. Who has to be convinced?
(Draw here)

Step 5: ROI (Return on investment) justification

What’s the return of your future customers, in terms of money saved, new customers
generated, time saved, influence, data, …? What will they win against their present
solutions? Try to put precise figures in your answers!
1. Key figures:
2. Potential gains:
3. …..
4. Invalidated figures (if any)

Discussion points, links ….

Step 6: Minimum feature set

Try to understand the smallest feature set that customers will still be glad to pay for. Really
kill your own will to add “just another small thing”.
1. Feature 1
2. Feature 2
3.
4. Won’t be included features

Discussion points, links ….

1-03 - CUSTOMER DISCOVERY DISTRIBUTION AND PRICING HYPOTHESES

OBJECTIVES: DESCRIBE WHAT DISTRIBUTION CHANNEL YOU INTEND TO USE TO RICH

CUSTOMERS (DIRECT, ONLINE, TELEMARKETING, REPS, RETAIL, …)
3 CRITERIA TO HAVE IN MIND: DOES THE CHANNEL ADD VALUE TO THE SALES
PROCESS? WHAT ARE THE PRICES AND COMPLEXITY OF THE PRODUCT? ARE THERE
ESTABLISHED CUSTOMER BUYING HABITS?
Step 1: What does the distribution channel look like?
Who’s here? What are the margins?
1. Channel 1
2. Channel 2
3.
4. Invalidated channels

Discussion points, links…

Step 2: what are your pricing assumptions?

Do customers already pay for something similar? How much? How will they buy from you?
At which price do customers find your offer really too expensive?

1. Rationale 1
2. Rationale 2
3.
4. Invalidated rationale

Discussion points, links…

Step 3: What is the customer Lifetime Value?

Do you sell once? Or do you keep your customers for a long time? Do a sold customer brings
you new ones? Do you enhance recurrence?

1. Fact 1
2. Fact 2
3.
4. Invalidated fact

Discussion points, links …..

1-04 - CUSTOMER DISCOVERY DEMAND CREATION HYPOTHESES

OBJECTIVES: FIND OUT HOW CUSTOMERS LEARN OF NEW COMPANIES AND NEW
PRODUCTS: SET HYPOTHESES ON HOW YOUR CUSTOMERS WILL HEAR ABOUT YOU.

Step 1: Creating customer demand You need to find a way to create demand and drive
people into the sales channel. Advertising? PR? Word of mouth? Fairs? Telemarketing?
Partners? Spam? Which magazines do customers read? Note: the further away from a direct
sale, the highest costs of demand creation...

1. Idea 1
2. Idea 2
3.
4. Invalidated idea

Discussion points, links…

Step 2: Understanding influencers

Who are the industry trend-setters? Thought leaders? Who’s affecting customers’ opinions:
analysts, bloggers, members of the press...? Who could join an advisory board?

1. Influencer 1
2. Influencer 2
3.
4. Invalidated influencer

Discussion points, links …

1-05 - CUSTOMER DISCOVERY MARKET TYPE HYPOTHESES

OBJECTIVES: START-UPS GENERALLY ENTER ONE OF THREE MARKET TYPES, AND

YOU’LL HAVE TO CHOOSE ONE. EVEN IF YOU CAN DEFER THAT DECISION, YOU NEED
TO START WORKING ON ONE HYPOTHESIS. YOU’LL HAVE TO ANSWER TO THAT
QUESTION: IS YOUR COMPANY ENTERING AN EXISTING MARKET, RE-SEGMENTING AN
EXISTING MARKET, OR CREATING A NEW MARKET?

Step 1: Are you in an existing market?

Is there an established and well-defined market, with a large number of customers? Does
your product have better “something” than competitors? Who are the competitors? What
are the market share of each? What are their marketing and sales expenses? What are the
entry costs? Which performance attributes are important for customers? How do
competitors define the market? What are the market standards?

1. Competitor type 1
2. Type 2
3.
4. Invalidated competitor

Discussion points, links…

Step 2: Are you in a re-segmented market?

Is there an established and well-defined market with large numbers of customers and your
product is lower cost than the existing solutions? Or can it be uniquely differentiated from
the incumbents (going to niche)?
What existing markets do customers come from? What customers’ needs remain unmet by
competitors? What compelling features of your product will drive customers abandon their
current suppliers? To what size can you grow? How will you educate the market? What are
the sales forecasts?
 1. Existing Market 1
2. Existing Market 2
3.
4. Invalidated Market

Discussion points, links…

Step 3: Are you entering a new market?

What are the adjacent markets next to the one you are creating? What compelling need will
make customers use/buy your product? What compelling feature? How long will market
education take? What market size will be sufficient? How will you educate the market and
create demand? How much money will it take before the market be educated? What will
stop competitors from taking the market from you? Is it possible to define the product as
either resegmenting a market or entering a new one?
1. Fact 1
2. Fact 2
3.
4. Invalidated fact

Discussion points, links …

1-06 - CUSTOMER DISCOVERY COMPETITIVE HYPOTHESES

OBJECTIVES: HAVE A LOOK ON THE COMPETITION TO UNDERSTAND WHO’S IN HERE

AND ON WHAT FEATURES/NEEDS YOU’LL GOING TO COMPETE. IF YOU’RE CREATING A
NEW MARKET, NO NEED TO DO THIS PART.
Step 1: Why customers would buy something from you? What’s the competition basis? Do
competitors fight on product attributes? on features? on service? What are their claims?
Why do you believe you’re different?
1. Claim 1
2. Claim 2
3.
4. Invalidated claim

Discussion points, links …

Step 2: What do you allow customers to do? Do you bring something they couldn't do
before? Do it faster? Better? Cheaper? Through a better channel?
1. Advantage 1
2. Advantage 2
3.
4. Invalidated advantage

Discussion points, links …

Step 3: Who are your best competitors? What do you like most about each competitor?
What do customers prefer? how do competitive products do get used?
1. Fact 1
2. Fact 2
3.
4. Invalidated fact

Discussion points, links…

Step 4: What do people do without your product? Do they do something? Do it badly?

1. Fact 1
2. Fact 2
3.
4. Invalidated fact

Discussion points, links…

1-07 - CUSTOMER DISCOVERY FIRST CUSTOMER CONTACTS

OBJECTIVES: START GOING OUT OF THE BUILDING AND MEET PEOPLE TO GET DEEP
UNDERSTANDING OF HOW CUSTOMERS ACTUALLY WORK AND WHAT THEY NEED AND
HOW THEY BUY. YOU JUST WANT TO VALIDATE OR MODIFY YOUR HYPOTHESES.
Step 1: Friendly First Contacts In your personal network, find the first people you’re going to
talk to. List 50 contacts from friends, investors, founders, lawyers, recruiters, magazines,
books, … even if they do not have a direct interest in the product. Call them and remind to
ask them who you could call by their recommendation.
1. Contact 1
2. Contact 2
3.
4. Invalidated contacts

Discussion points, links

Step 2: Use the contacts

Send a brief mail explaining what you do and why: gathering customer thoughts, that your
contacts will forward as an introduction to potential customers or interesting people to
meet. Use the reference to contact this level-2 batch of people, asking for some free time to
talk. Prepare to do *TEN* phone calls a day
1. Intro mail
2. Phone speech

Discussion points, links…

Step 3: List the “innovators”

Find the people, amongst the previous list or not, that are seen as early adopters, trend
setters or innovation spotters.
1. Innovator 1
2. Innovator 2
3.
4. Invalidated innovator

Discussion points, links….

1-08 - CUSTOMER DISCOVERY. THE CUSTOMER PROBLEM PRESENTATION

OBJECTIVES: BASED ON YOUR HYPOTHESES, DEVELOP A PRESENTATION ABOUT THE

PROBLEM YOU WANT TO SOLVE. PROBLEM PRESENTATION (IN CONTRAST WITH A
PRODUCT PRESENTATION) ISN’T DESIGNED TO CONVINCE CUSTOMER, BUT RATHER TO
ELICIT INFORMATION FROM CUSTOMERS.
Step 1: One slide presentation
When accurate, you can use a one slide to state the problems as you see them, but a simple
flip chart can make it too. Do not propose the solutions, instead explain how you see the
problems, let your contact restate or reorder them, and go on only afterwards.
List of problems Current solution Your solution

Bullet points

1.
2.
3. Do not mention points

Discussion points, links…

Step 2: Attract feedbacks

During the meeting, do not propose the solutions, instead explain how you see the problems,
let your contact restate or reorder them, and go on only afterwards with column 2. You’re
not the one convincing the other, you need to let them convince you they have a problem.
Once a problem is recognized, ask how much having it, costs to the customer.
1. Feedback 1
2. Feedback 2
3.
4. Invalidated fact

Discussion points, links…

Step 3: Summarize
Ask “what’s the biggest pain in your work?” and “if you could have a magic wand and
change anything, what would it be?”. After each meeting, make a follow-up e-mail and
summarize the learnings.
1. Fact 1
2. Fact 2
3.
4. Invalidated fact

Discussion points, links….

1-09 - CUSTOMER DISCOVERY IN-DEPTH CUSTOMER UNDERSTANDING

OBJECTIVES: YOU WANT TO UNDERSTAND HOW YOUR CUSTOMERS SPEND THEIR DAY
AND THEIR MONEY, AND HOW THEY GET THEIR JOB DONE.
Step 1: How customers live How do your customers do their job? Who are they interacting
with? What other products do they use?
1. Normal day fact 1
2. Fact 2
3.
4. Invalidated fact

Discussion points, links…

Step 2: Would people pay for it? What would make customers change the way they live by
now? Which price? What features? What would be the barriers to adopting the product?
1. Paying argument 1
2. Paying argument 2
3.
4. Invalidated argument

Discussion points, links…

Step 3: How would they know you? Who are the visionaries? What do they read? Which
event do they go to?
1. Fact 1
2. Fact 2
3.
4. Invalidated fact

Discussion points, links…

1-10 - CUSTOMER DISCOVERY MARKET KNOWLEDGE

OBJECTIVES: GO A LITTLE FURTHER THAN JUST KNOWING YOUR CUSTOMERS: KNOW

ADJACENT MARKETS AND INDUSTRIES AND BE AWARE OF EVERY TREND OR NEW
BUZZWORD OF IT.
Step 1: Meet people in adjacent markets Through your own contacts or through
introductions, take peers to lunch and offer them a trade of information and contacts.
1. Contact 1
2. Contact 2
3.
4. Invalidated contacts

Discussion points, links

Step 2: Jump into the ecosystem

List all conferences ad tradeshows you need to attend to and use them to spot trends and
talents. Gather quantitative date and find all the essential reports on the industry.
Understand what the trends are, the players, the key metrics, the business models... in the
minds of the analysts and experts.
1. Touchpoint 1
2. Touchpoint 2
3.
4. Invalidated points

Discussion points, links…