Class 3 / 12

February 23, 2015

Jen van der Meer | jd1159 at nyu dot edu

Josh Knowles | chasing at spaceship dot com

LEAN LAUNCHPAD AT NYU ITP

6:30 – 7:30

Team presentations

7:30 – 8:00

Overview and User Profiles

8:00-8:15

Break

8:15-8:45

Customer Exercise

8:45 – 9:15

Value Proposition Exercise

TODAY:

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CLASS TIMEFRAME 2015

2/2Business ModelsCustomer Development

2/9Value Proposition Research tools

2/16President’s Day

2/23Customer SegmentsResearch Tools

3/23Spring Break

3/9Customer RelationshipsProduct Development

3/23ResourcesActivities + Costs

3/30Product DevelopmentUX and User InterfaceDesign

4/6UI UX Part 2

4/13Product DevelopmentUser test

4/20Product development

4/27Product MVP

May!Delicious CelebrationLessons Learned

3/2Revenue StreamsDistribution Channels

4

FOUNDERS DILEMMA

Founder’s Dilemma. Noam Wasserman.

CUSTOMERS

Business model hypothesis

CUSTOMER DISCOVERY: PHASE 1

MarketSize

Value Prop 1 Product

MVP

CustomersWho/

ProblemChannels

Value Prop 2

Key Resources

Partners

Revenue

Value Prop Low Fidelity

MVP

CustomersSource/Wiring

Channels

Market Type

Customer Relationship

Traffic Partners

Pricing

Phys

ical

Cha

nnel

Web

/Mob

ile C

hann

el

MARKET SIZE

TAM: Total Available MarketTotal Market Size Available TODAY

TAM: Total Available MarketTotal Market Size Available TODAY

MARKET SIZE

SAM: Servicable Available Market

Focus on Your Own Technology/Services

MARKET SIZE

Target Market: What realistic market share

can be obtained

Super user

Early evangelist

Willing to spend money for an incomplete, buggy, barely functional product

YOUR FIRST TARGET CUSTOMER

Where are they in life?

Where would you find them?

What are their needs? Why are these their needs?

How are they solving the problem now?

WHO IS HE/SHE?

Segments are clusters of customers with unique behaviors.

Before you are able to analyze buying, usage, and referral data, your segmentation will be a hypothesis, based on:

• Demographics

• Psychographics/

• Technographics

• Behavioral

CUSTOMER SEGMENTS

BEFORE THEWEB: SURVEY BASED SEGMENTATION

1. Define hypotheses of unique customer segments

2. Choose 2-3 to test

3. Develop a user story for each

4. Develop a value proposition for each

5. Determine profit potential for each

TESTING CUSTOMER SEGMENTS

VALUE PROPOSITION FIT

CUSTOMER SEGMENTS: WHAT ARE THEY SEEKING?

PRODUCT VISION

Ultimate Product Vision

Product Features and Benefits

MVP

A concise summary of the smallest possible group of features that will work as a standalone product while still solving at least the core problem and demonstrating the product’s value.

MVP is:

• A tactic for cutting back on wasted development hours

• A strategy to get the product into earlyvangelists hands as soon as possible

• A tool for generating maximum customer learning in the shortest possible time.

MVP

VALUE PROPOSITION CANVAS

WHAT CAME BEFORE STEVE AND ERIC

22

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NEXT WEEK PREP:

Watch Lecture Customer Relationships—take the quiz

Watch Lecture Partners

Read: Business Model Generation 180-225

Optional Reading: Lean Analytics by Alistair Croll and Ben Yoskovitz overview.

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NEXT WEEK PRESENTATION:

5 people customer discovery interviews

Prepare a presentation – guidelines below:

· Cover slide

· Latest version Business Model Canvas with changes marked

· Market size (TAM, SAM, Target Market)

Total addressable: how big is the universe

Served available market: how many can I reach with my sales channel?

Target market: who will be the most likely buyers?

· Propose experiments to test your value proposition. What constitutes a pass/fail signal for each

test?