Return-Path: Delivered-To: andrew@sterlingcal.com Received: from reseller401.webserversystems.com by reseller401.webserversystems.com with LMTP id wD2ZGGx+N2ekDwkAchKAPA (envelope-from ) for ; Fri, 15 Nov 2024 11:01:32 -0600 Return-path: Envelope-to: andrew@sterlingcal.com Delivery-date: Fri, 15 Nov 2024 11:01:32 -0600 Received: from o13.ptr6032.mail.beehiiv.com ([159.183.141.176]:46052) by reseller401.webserversystems.com with esmtps (TLS1.2) tls TLS_ECDHE_RSA_WITH_AES_128_GCM_SHA256 (Exim 4.96.2) (envelope-from ) id 1tBzhL-002Vkx-1t for andrew@sterlingcal.com; Fri, 15 Nov 2024 11:01:32 -0600 DKIM-Signature: v=1; a=rsa-sha256; c=relaxed/relaxed; d=mail.beehiiv.com; h=content-type:from:mime-version:subject:reply-to:list-unsubscribe-post: list-unsubscribe:to:cc:content-type:from:subject:to; s=s1; bh=MJL6ifUjN2WAJVpH/EY+RTIYQQfdDDPpZ3ykZpmY91I=; b=blzUhVAOZqhpo0EYzJk9xrHLTf1GWWbKx2ofsQEvUnHpNNTG9SpLrx8+zcBAHaBvmKIB 4RXcqRZgg8xCnziHkpV1C/Tylxs+Jc/x6L4f01ccVtWlYXYtE56vQS09p1SoMa49duk1XL GlwpnxSWm18CDxomE1KuaCztMQ4oeTTGL5s1w3owFACUrZFRcq5x+8yml2kvWWwJs8KAjg vIA4iOsjWLGhoFCzFsmUz5OYjdt3TXkckkExKT2UaiUgheCHkbq2eovp1eJF41+Zo+scwL bQoxj4tGX68bXKNYpzumskWgIZLa8KYlMq3vtWjKK92Tk2zWcEBrn/HN8dWaDtfg== Received: by recvd-5f5cf94c86-vmc2c with SMTP id recvd-5f5cf94c86-vmc2c-1-67377E4A-70 2024-11-15 17:00:58.287170826 +0000 UTC m=+70616.566270660 Received: from NDAyMzQxODk (unknown) by geopod-ismtpd-17 (SG) with HTTP id GKw67YlsSC2zihDTb8kj6g Fri, 15 Nov 2024 17:00:58.187 +0000 (UTC) Content-Type: multipart/alternative; boundary=2ca0426f134dbd0d02a0718b8f1b8585b0091496c1302f64b6254784a094 Date: Fri, 15 Nov 2024 17:01:20 +0000 (UTC) From: Collin Stewart Mime-Version: 1.0 Message-ID: Subject: exploratory customer development Reply-To: Collin Stewart x-list-owner: x-list-id: 3c5b97ff-00a9-4acc-916d-c137bca24b1d Feedback-ID: =?us-ascii?Q?cf257d4f-b894-42f0-9263-e26d49d61c26=3Anewsletter=3A3c5b97ff-00a9-?= =?us-ascii?Q?4acc-916d-c137bca24b1d=3A23270855726497d?= x-newsletter: =?us-ascii?Q?https=3A=2F=2Fpredictablerevenue-newsletter=2Ebeehiiv=2Ecom=2Fp=2Fexplorator?= =?us-ascii?Q?y-customer-development?= x-beehiiv-ids: =?us-ascii?Q?{=22account=5Fname=22=3A=22https=3A=2F=2Fpredictablerevenue-newsletter=2Ebeehiiv?= =?us-ascii?Q?=2Ecom=2F=22=2C=22campaign=5Fid=22=3A=22cf257d4f-b894-42f?= =?us-ascii?Q?0-9263-e26d49d61c26=22=2C=22category=22=3A=22newsle?= =?us-ascii?Q?tter=22=2C=22email=5Fgenerated=5Fat=22=3A1731690057=2C=22?= =?us-ascii?Q?user=5Fid=22=3A=223c5b97ff-00a9-4acc-916d-c137b?= =?us-ascii?Q?ca24b1d=22}?= sId: 3c5b97ff-00a9-4acc-916d-c137bca24b1d x-newsletter-signup: https://predictablerevenue-newsletter.beehiiv.com/subscribe List-Unsubscribe-Post: List-Unsubscribe=One-Click x-newsletter-id: https://predictablerevenue-newsletter.beehiiv.com/ List-Unsubscribe: =?us-ascii?Q?=3Cmailto=3A3c5b97ff-00a9-4acc-916d-c137bca24b1d+1d17dc26-c1df-44e?= =?us-ascii?Q?0-812a-883b6ad5b6bc+cf257d4f-b894-42f0-?= =?us-ascii?Q?9263-e26d49d61c26=40unsub=2Ebeehiiv=2Ecom=3E=2C?= =?us-ascii?Q?_=3Chttps=3A=2F=2Fpredictablerevenue-newsletter=2Ebeehiiv=2Ecom=2Funsubscribe?= =?us-ascii?Q?=2FeyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9=2Ee?= =?us-ascii?Q?yJzdWJzY3JpYmVyX2lkIjoiMWQxN2RjMjYtYzFk?= =?us-ascii?Q?Zi00NGUwLTgxMmEtODgzYjZhZDViNmJjIiwicG9?= =?us-ascii?Q?zdF9pZCI6ImNmMjU3ZDRmLWI4OTQtNDJmMC05Mj?= =?us-ascii?Q?YzLWUyNmQ0OWQ2MWMyNiIsImxhc3RfcmVzb3VyY?= =?us-ascii?Q?2VfZ3VpZCI6IlBvc3Q6Y2YyNTdkNGYtYjg5NC00?= =?us-ascii?Q?MmYwLTkyNjMtZTI2ZDQ5ZDYxYzI2In0=2EcIs9Qc7?= =?us-ascii?Q?xpxKMvgl5w7gXES1HhFocEfSUUPryon89hZ4=3E?= x-beehiiv-type: newsletter X-SG-EID: =?us-ascii?Q?u001=2E7ozyt+tmjDsHnEocxX8pymFA2v5OOh2V4Pdr6hGVjZo99sLHT4OeEg7as?= =?us-ascii?Q?oEFtQzIa0qAOkk1QezFA4qrCcff9558yNK8x6zQ?= =?us-ascii?Q?0aLhxDCyAuB9kgcSLas3IIKR+fvCUJBBKbI1KMc?= =?us-ascii?Q?BMCAaZHCpywUfyUmIKFKym4M0gHsiK5RDim9m1b?= =?us-ascii?Q?57UtcaSM4q8rF0o+mp3j3oOmuzI9rJo2V+ogIhv?= =?us-ascii?Q?G9ryik+2WgtpvYjTjuek=2Fjm0YeJM4fRw8M=2F59HI?= =?us-ascii?Q?1wCWRpcj3D80lyWrPSuj=2FsdM0Xt1EjM4+49IMZp?= =?us-ascii?Q?D52nslPw=3D?= X-SG-ID: =?us-ascii?Q?u001=2ESdBcvi+Evd=2FbQef8eZF3BpTL9BgbK5wfSJMJGMsmprAVgeiC8iaV7rEmQ?= =?us-ascii?Q?+cYi2k7Zv9GmpmYPS=2FLqACWLfwW6j0RB0b3yE1b?= =?us-ascii?Q?WlmAnDSR5uBeroIXaQwmKOJWwRP5M2xdjcmgzpi?= =?us-ascii?Q?zjn6wxfsBK9StaJ3IqNnZm5uz7CfuB722rzr1sz?= =?us-ascii?Q?iMJdqiF9sNDigXbqa73Toam2A+a3ZG=2FhXqvtnRG?= =?us-ascii?Q?Kk46kzfhFHPCnooVX40T18cQTGWq1CSsAlEgIjq?= =?us-ascii?Q?p38lwMZsscVh4RTc=2FtfZl8j2bg=3D=3D?= To: "andrew@sterlingcal.com" X-Entity-ID: u001.RuZ2+X9IBGtjUb8qq3teHQ== X-Spam-Status: No, score=-4.3 X-Spam-Score: -42 X-Spam-Bar: ---- X-Spam-Flag: NO --2ca0426f134dbd0d02a0718b8f1b8585b0091496c1302f64b6254784a094 Content-Transfer-Encoding: quoted-printable Content-Type: text/plain; charset=utf-8 Mime-Version: 1.0 Good morning Andrew,=20 Have you ever sat down for a customer development interview, only to realiz= e halfway through the conversation that you=E2=80=99ve been chasing somethi= ng they don=E2=80=99t actually care about? When I first started doing custo= mer development interviews, I thought they were all about _validating my id= eas_. In reality, my first conversations should have been about identifying= pains that were top of mind for them.=20 In today=E2=80=99s email, I=E2=80=99m going to dive into my process for Exp= loratory Customer Development Interviews. These are the first interviews th= at I use for finding the signs of a potential gap in the market. These are = the first of four interview types that I use in my process to learn from pe= ople and slowly walk them into a sales process (with their permission). The= following is an unedited excerpt from Chapter 3: Finding Product Market Fi= t. I=E2=80=99m sending the second draft of my edits for Act 1 (chapters 1-3= ) today and then will move onto Act=E2=80=99s 2 & 3. Interestingly, there w= ere 103 edits/comment requests for the first Act and only 41 for Act=E2=80= =99s 2 & 3 so it feels like I=E2=80=99m making good progress on the meaties= t section of the book.=20 Here=E2=80=99s the tl;dr:=20 * **Goal**: Identify high-impact, unmet needs by letting interviewees revea= l their biggest pain points naturally, using open-ended questions to avoid = steering the conversation. * **Structure**: Follow a loose framework of Context, Progress, and Impact = to uncover the day-to-day challenges * **Gauge**: Quantify the size of the opportunity by asking importance and = satisfaction questions.=20 #### **Exploratory Customer Development Interviews** Goal: Find a gap worth solving.=C2=A0 I use these interviews when I first start to make sure that I=E2=80=99m foc= using on the problem that is top of mind for the people I want to target. I= use open ended questions and avoid steering the interview towards my probl= em space. A great outcome is one where the interviewee brings up your probl= em space first. An even better outcome is finding a problem space you didn= =E2=80=99t know existed. If you=E2=80=99re surprised, that=E2=80=99s a good= thing because it means it=E2=80=99s not obvious and is less likely to have= competitive startups working on the same thing.=C2=A0 Each interview has three parts: context, progress, and impact. Use these th= ree as your loose guide to the conversation, you need to strike a balance b= etween asking your questions and letting the interviewee talk.=C2=A0 You=E2=80=99re looking for patterns in the data and the data is only as rel= iable as your interview process. If you ask a different set of questions to= every person, there will be no consistency. On the flip side, if you only = ask your questions, it can put you into checklist mode, which stifles the c= onversation.=C2=A0 A great customer development interview gets the interviewee talking about t= heir problems and telling stories. Don=E2=80=99t be afraid to go off script= or to let someone go on a tangent, sometimes these unexpected directions l= ead us somewhere important.=C2=A0 =E2=80=A6 for more on asking good questions / running a good interview =E2= =86=92 see the sales conversations chapter (_note from Collin: coming later= to this newsletter_) or check out [The Mom Test by Rob Fitzpatrick](https:= //www.momtestbook.com/). The two processes have very strong overlaps in the= skills required. Feel free to jump ahead to that chapter and come back. On= e last note, you can thank Michel for the following interview format too.= =C2=A0 **_Context_****=C2=A0** To understand the context of the potential customer I get them to walk me t= hrough a day in their life. These questions set the table and direct the co= nversation to the high level problem space I want to understand. Here are s= ome questions I learned from Michel:=C2=A0 * When you walk in in the morning, what is the first thing you do every day= ? * How many applications do you log into? * What applications do you love and why? * Who do you report to * What are you MBOs The questions work as a setup for the magic wand question. The magic wand q= uestion helps us understand what pains are top of mind for the interviewee = or the progress they would like to make. One of the biggest mistakes I made= when I ran customer development interviews for the first time was not aski= ng questions that quantified people=E2=80=99s pain. I showed them my idea, = they said they liked it and I checked off my =E2=80=9Ccustomer development = interview=E2=80=9D box. What this lead to was my team building a CRM system= that everyone said was a =E2=80=9Csmart idea=E2=80=9D but nobody wanted to= buy. Turns out that =E2=80=9Cgood idea=E2=80=9D was code for =E2=80=9Cleav= e me alone=E2=80=9D.=C2=A0 **_Progress_** As I ran more interviews, I got better at asking questions and listening. I= could identify unmet needs and articulate them as jobs to be done but I st= ruggled to get interviewees to clearly articulate their importance. A light= bulb went off for me when I read [Dan Olsen=E2=80=99s book, The Lean Produc= t Playbook](https://leanproductplaybook.com/), and came across The Importan= ce versus Satisfaction Framework. Dan proposed adding two questions to help= rank the unmet needs an interviewee mentions.=C2=A0 Next time an interviewee mentioned an unmet need, I would ask two follow on= questions:=C2=A0 * On a scale of 1-10, how important is this to you?=C2=A0 * On a scale of 1-10, how satisfied are you with how you=E2=80=99re current= ly solving it? These two questions enable you to visualize the unmet needs you=E2=80=99ve = found as a quadrant. What we=E2=80=99re looking for are unmet needs that ar= e very important (10/10) and have low satisfaction (2/10) ratings.=C2=A0 **_Impact_**=C2=A0 Once you=E2=80=99ve found a high importance low satisfaction (HILS) problem= , you=E2=80=99ve found motivation. The next step is to see if that motivati= on can be tied to sometime meaningful to the company, more revenue, higher = profits, or reduced risk. I=E2=80=99ll ask questions like:=C2=A0 * If you were able to solve X - how would that impact your department, KPIs= , etc=E2=80=A6 * If you were able to solve X - what would that mean to you personally?=C2= =A0 * How would that change your role / your department?=C2=A0 If you can find a HILS problem that can be directly attributed to the botto= m line, you=E2=80=99ve found yourself something special.=C2=A0 **_History_** Here are some questions that will help you better understand your interview= ees and make your life easier when it comes time to build your first custom= er acquisition channel: * Tell me about the last time you tried to solve this problem?=C2=A0 * How have others in your organization tried to solve this?=C2=A0 * What resources (time, money, training) went into solving it last time? * Talk to me about your process for finding a solution=E2=80=A6=C2=A0 * If they found a solution ask follow on questions like =E2=80=9Chow did yo= u hear about X?=E2=80=9D * Where did they look, who did they ask, what did they buy, how did they = find the last tool they bought, etc=E2=80=A6 **_Note_**_: These are variations of questions I=E2=80=99ve used in my cust= omer development cheat sheet that I shared a few weeks back and were origin= ally Mom Test questions. _ This last question will help you understand their buying process and will h= int at the future demand generation channels you=E2=80=99ll need to build. = If they haven=E2=80=99t tried solving the problem with software, then ask a= bout how they found a related product that they=E2=80=99ve already purchase= d.=C2=A0 These interviews will help you find unmet needs worth solving. When you thi= nk you=E2=80=99ve found something, it=E2=80=99s time to move to Focused Cus= tomer Development Calls to validate that assumption. Keep in mind that movi= ng forward in the process doesn=E2=80=99t mean you=E2=80=99ll never come ba= ckwards. Sometimes you=E2=80=99ll find a gap that looks real but turns out = to be unsolvable or unprofitable to solve, in those cases it=E2=80=99s wise= to return to Exploratory Interviews and look for a new gap.=C2=A0 **Exit criteria** There are two things I=E2=80=99m looking for before I move to Focused Inter= views: a clear definition of the unmet needs I=E2=80=99ve found and a profi= le of the people and companies most interested in solving them.=C2=A0I find= it helpful to document my assumptions in a shared document with my team be= fore I move onto the next step. This keeps me honest and helps me remember = what I thought was true when I first started out. I=E2=80=99ve done this re= cently for a new project, hit reply if you want me to turn it into a templa= te for you.=20 Thanks for reading,=C2=A0 Collin=C2=A0 PS - we=E2=80=99re starting to work on visuals for the cover design, any su= ggestions? I=E2=80=99m pretty confident we=E2=80=99ll be sticking with The = Terrifying Art of Finding Customers as a title. Part of me wants to try a T= im Burton style but most of me thinks that=E2=80=99s a terrible idea.=20 =E2=80=94=E2=80=94=E2=80=94 You are reading a plain text version of this post. For the best experience,= copy and paste this link in your browser to view the post online: https://predictablerevenue-newsletter.beehiiv.com/p/exploratory-customer-de= velopment --2ca0426f134dbd0d02a0718b8f1b8585b0091496c1302f64b6254784a094 Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset=utf-8 Mime-Version: 1.0 exploratory customer development
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November 15, 2024   |   Read Online

exploratory custom= er development

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Here are some questions that will help you better understand your i= nterviewees and make your life easier when it comes time to build your firs= t customer acquisition channel:

= Good morning Andrew,

Have you ever sat do= wn for a customer development interview, only to realize halfway through th= e conversation that you=E2=80=99ve been chasing something they don=E2=80=99= t actually care about? When I first started doing customer development inte= rviews, I thought they were all about validating my ideas. In reality, my first conversations should have been about identifyi= ng pains that were top of mind for them.

= In today=E2=80=99s email, I=E2=80=99m going to dive into my process for Exp= loratory Customer Development Interviews. These are the first interviews th= at I use for finding the signs of a potential gap in the market. These are = the first of four interview types that I use in my process to learn from pe= ople and slowly walk them into a sales process (with their permission). The= following is an unedited excerpt from Chapter 3: Finding Product Market Fi= t. I=E2=80=99m sending the second draft of my edits for Act 1 (chapters 1-3= ) today and then will move onto Act=E2=80=99s 2 & 3. Interestingly, there w= ere 103 edits/comment requests for the first Act and only 41 for Act=E2=80= =99s 2 & 3 so it feels like I=E2=80=99m making good progress on the meaties= t section of the book.

Here=E2=80=99s the= tl;dr:

  • Goal: Identify high-impact, unmet needs by letting interviewees revea= l their biggest pain points naturally, using open-ended questions to avoid = steering the conversation.

  • Structure: Follow a loose framework of Context, Progress, and Impact to = uncover the day-to-day challenges

  • Gauge: Quantify the size of the opportunity by asking importance = and satisfaction questions.

Exploratory Customer Development Interviews

Goal: Find a gap worth solving.=C2=A0

I use these interviews when I first start t= o make sure that I=E2=80=99m focusing on the problem that is top of mind fo= r the people I want to target. I use open ended questions and avoid steerin= g the interview towards my problem space. A great outcome is one where the = interviewee brings up your problem space first. An even better outcome is f= inding a problem space you didn=E2=80=99t know existed. If you=E2=80=99re s= urprised, that=E2=80=99s a good thing because it means it=E2=80=99s not obv= ious and is less likely to have competitive startups working on the same th= ing.=C2=A0

Each interview has three parts:= context, progress, and impact. Use these three as your loose guide to the = conversation, you need to strike a balance between asking your questions an= d letting the interviewee talk.=C2=A0

You= =E2=80=99re looking for patterns in the data and the data is only as reliab= le as your interview process. If you ask a different set of questions to ev= ery person, there will be no consistency. On the flip side, if you only ask= your questions, it can put you into checklist mode, which stifles the conv= ersation.=C2=A0

A great customer developme= nt interview gets the interviewee talking about their problems and telling = stories. Don=E2=80=99t be afraid to go off script or to let someone go on a= tangent, sometimes these unexpected directions lead us somewhere important= .=C2=A0

=E2=80=A6 for more on asking good = questions / running a good interview =E2=86=92 see the sales conversations = chapter (note from Collin:= coming later to this newsletter) or check out The Mom Test by Rob Fitzpatrick. The two processes have very str= ong overlaps in the skills required. Feel free to jump ahead to that chapte= r and come back. One last note, you can thank Michel for the following inte= rview format too.=C2=A0

Context<= /b>=C2=A0

To understand the context of the potential customer I = get them to walk me through a day in their life. These questions set the ta= ble and direct the conversation to the high level problem space I want to u= nderstand. Here are some questions I learned from Michel:=C2=A0

<= /td>

  • When you walk in in the morning, what is the first thing you do every= day?

  • How many applications do you log into?

  • What applications do you love and = why?

  • Who do you report to

  • What are you MBOs

The questions work as a setup for the magic wand question. Th= e magic wand question helps us understand what pains are top of mind for th= e interviewee or the progress they would like to make. One of the biggest m= istakes I made when I ran customer development interviews for the first tim= e was not asking questions that quantified people=E2=80=99s pain. I showed = them my idea, they said they liked it and I checked off my =E2=80=9Ccustome= r development interview=E2=80=9D box. What this lead to was my team buildin= g a CRM system that everyone said was a =E2=80=9Csmart idea=E2=80=9D but no= body wanted to buy. Turns out that =E2=80=9Cgood idea=E2=80=9D was code for= =E2=80=9Cleave me alone=E2=80=9D.=C2=A0

= Progress

As I ran more inter= views, I got better at asking questions and listening. I could identify unm= et needs and articulate them as jobs to be done but I struggled to get inte= rviewees to clearly articulate their importance. A lightbulb went off for m= e when I read Dan Olsen=E2=80=99s book, The Lea= n Product Playbook= , and came across The Importance versus Satisfaction Framework. Dan propose= d adding two questions to help rank the unmet needs an interviewee mentions= .=C2=A0

Next time an interviewee mentioned= an unmet need, I would ask two follow on questions:=C2=A0

  • On a scale of 1-10, how important is this to you?=C2=A0

    • On a scale of 1-10, = how satisfied are you with how you=E2=80=99re currently solving it?<= /p>

These two questions enable you to= visualize the unmet needs you=E2=80=99ve found as a quadrant. What we=E2= =80=99re looking for are unmet needs that are very important (10/10) and ha= ve low satisfaction (2/10) ratings.=C2=A0

= Impact=C2=A0

Once you=E2=80=99ve found a high importance = low satisfaction (HILS) problem, you=E2=80=99ve found motivation. The next = step is to see if that motivation can be tied to sometime meaningful to the= company, more revenue, higher profits, or reduced risk. I=E2=80=99ll ask q= uestions like:=C2=A0

  • <= span style=3D"color:rgb(44, 62, 80);">If you were able to solve X - how wou= ld that impact your department, KPIs, etc=E2=80=A6

  • If you were able to solve = X - what would that mean to you personally?=C2=A0

  • How would that change your= role / your department?=C2=A0

If you can find a HILS problem that can be directly attributed to the = bottom line, you=E2=80=99ve found yourself something special.=C2=A0<= /p>

History

  • Tell me about the last tim= e you tried to solve this problem?=C2=A0

  • = How have others in your organization= tried to solve this?=C2=A0

  • What resources (time, money, training) went int= o solving it last time?

  • Talk to me about your process for finding a solution= =E2=80=A6=C2=A0

  • If they found a solution ask follow on questions like =E2=80= =9Chow did you hear about X?=E2=80=9D

    • Where did they look, who did they ask, what = did they buy, how did they find the last tool they bought, etc=E2=80=A6

Note<= /span>: These are variations of q= uestions I=E2=80=99ve used in my customer development cheat sheet that I sh= ared a few weeks back and were originally Mom Test questions.

This last question will help you understand their = buying process and will hint at the future demand generation channels you= =E2=80=99ll need to build. If they haven=E2=80=99t tried solving the proble= m with software, then ask about how they found a related product that they= =E2=80=99ve already purchased.=C2=A0

These= interviews will help you find unmet needs worth solving. When you think yo= u=E2=80=99ve found something, it=E2=80=99s time to move to Focused Customer= Development Calls to validate that assumption. Keep in mind that moving fo= rward in the process doesn=E2=80=99t mean you=E2=80=99ll never come backwar= ds. Sometimes you=E2=80=99ll find a gap that looks real but turns out to be= unsolvable or unprofitable to solve, in those cases it=E2=80=99s wise to r= eturn to Exploratory Interviews and look for a new gap.=C2=A0

Exit criteria

= There are two things I=E2=80=99m looking for before I move to Focused Inter= views: a clear definition of the unmet needs I=E2=80=99ve found and a profi= le of the people and companies most interested in solving them.=C2=A0I find= it helpful to document my assumptions in a shared document with my team be= fore I move onto the next step. This keeps me honest and helps me remember = what I thought was true when I first started out. I=E2=80=99ve done this re= cently for a new project, hit reply if you want me to turn it into a templa= te for you.

Thanks for reading,=C2=A0

Collin=C2=A0

= <= tr>
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