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Times Square Strategy Session – Web Startups and Customer Development

Steve Blank

I was in New York last week with my class at Columbia University and several events made me realize that the Customer Development model needs to better describe its fit with web-based businesses. And without revenue how do we know if we achieved product/market fit to exit Customer Validation?” It’s an impressive portfolio.

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Pricing determines your business

A Smart Bear: Startups and Marketing for Geeks

It’s often said that you shouldn’t talk about price during customer development interviews. 1/mo means you can’t afford customer service and it must incrementally free to run the technology behind it, both of which have implications for the sort of product you have to build (e.g. Think: GoDaddy).

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[Review] The Lean Startup

YoungUpstarts

Such direct experiences allows one to test critical “leap-of-faith” assumptions about what customers like and dislike. Customer development (the understanding of customer needs) must be married to agile development (a process which drives waste out of product development).

Lean 193
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Lessons Learned: The three drivers of growth for your business.

Startup Lessons Learned

I break the answer to that question down into three engines: Viral - this is the business model identified in the presentation as "Get Users." Here, the key metrics are Acquisition and Referral, combined into the now-famous viral coefficient. If the coefficient is > 1.0 , you generally have a viral hit on your hands.

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Lessons Learned: Using AdWords to assess demand for your new.

Startup Lessons Learned

Finally the day came, we unleashed the landing page, emailed our existing customers, and started advertising online. If you cant find any , maybe that means you havent figured out who your customer is yet. And if you dont know who your customer is, perhaps some customer development is in order?

Demand 167
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No Accounting For Startups

Steve Blank

If you are following Customer Development , the answer is easy. Board meetings are about measuring progress measured against the hypotheses in Customer Discovery and Validation. Customer Acquisition. Advertising Expenses. Viral Acquisition Ratio. Filed under: Customer Development , Durant versus Sloan.

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Lessons Learned: The one line split-test, or how to A/B all the time

Startup Lessons Learned

That green button was part of a customer flow, a series of actions you want customers to complete for some business reason. If its part of a viral loop, its probably trying to get them to invite more friends (on average). Why did customers like your change so much that they didnt change their behavior one iota ?