Customer validation is the ONLY way to know that you have a real business that solves real problems. Even if you think you've validated, read these tips and go validate again.

1. CustomerValidation & Development
for Startups
Founder Institute Workshop
January 2015

2. “At least 2/3 of our ideas are never going to
work.The other 1/3 will take 3 to 4
iterations”
~ Marty Cagan, SV Partners

3. WHO? WHAT? HOW?

4. WHO? WHAT? HOW?

5. Everyone can use my product!
WHO? WHAT? HOW?

6. Segments Size Pay Accessibility
Source: CustDevLabs
SPATreatment
WHO? WHAT? HOW?

7. Segments Size Pay Accessibility
Tour Guides
Health Centers
Beauty Salons
Source: CustDevLabs
SPATreatment
WHO? WHAT? HOW?

8. Segments Size Pay Accessibility TOTAL
Tour Guides 2 1 3 6
Health Centers
Beauty Salons
Source: CustDevLabs
SPA CONT’D
Size Pay Accessibility Score
<100 -$ OR -pain Weeks 1
1000+ $ OR pain Days 2
10000+ +$ OR + pain Hours 3
WHO? WHAT? HOW?

9. Remember! NO PITCHING.
HYPOTHESIS. Validate and score the problem hypothesis/
values and wastes for the customer
ASSUMPTIONS. Prove or disprove assumptions
PAY. Find out if they will pay for your service/product
WHO? WHAT? HOW?

10. On the street
In a lineup/events
YellowPages
Rapportive Hack
Craigslist, Quora, Reddit, Twitter, LinkedIn
MTurk (B2C)
Fake Ad & Landing Page
WHO? WHAT? HOW?

11. Cold Email or Call (B2B - no pitching!)
Online surveys
Face to face interviews
Observation
Kickstarter/IndieGoGo
WHO? WHAT? HOW?
Pro Tip: if you’re sending cold emails or
doing cold calls, you will have double success
rate on follow ups.

12. Validation Board

13. INTERVIEW DO’S
Understand motives
Drilldown
Observe behavior & feedback separately
Look for negative feedback
Ask for introductions
WHO? WHAT? HOW?

14. INTERVIEW DON’TS!
Ask leading questions
Ask hypothetical questions
Act like the project is your baby
WHO? WHAT? HOW?

15. WHO? WHAT? HOW?
How time-consuming is this process?
HOWTO ASK INTERVIEW QUESTIONS

16. Better Way
Tell me about this process...
Interesting, why does it take x minutes?
Right, have you tried alternative methods? Why or why not?
How time-consuming is this process?
WHO? WHAT? HOW?
HOWTO ASK INTERVIEW QUESTIONS

17. Do you like this idea?
WHAT?WHO? HOW?
HOWTO ASK INTERVIEW QUESTIONS

18. Better Way
How do you see this idea fitting in with your life?
What does it change for you?
Would you tell your networks about it?
Do you like this idea?
WHAT?WHO? HOW?
HOWTO ASK INTERVIEW QUESTIONS

19. MORE INTERVIEW GOODNESS...
UNDERSTAND the customer’s story in their OWN words
Measure (rating 1 to 5) the IMPORTANCE of the problem (for each customer segment)
Pinpoint their PAINS & VALUES and weigh the importance on each
What OTHER solutions are they using?
Have them define their DREAM solution
If you are doing a demo of concept or pitch, do this last and NO PITCHING!
Try to get a currency (cash, development, time, referrals)
WHAT?WHO? HOW?

20. ! So Mr. Stevens, the premium CRM license is $5000, which can finally get you guys
off that nightmarish paper system — I think you’re going to be able to save a ton of
time. Thanks Rob, that sounds great. You guys are really delivering a lot of value for
that price. Let me talk to my team and get back to you.
! So Mr. Stevens, you guys are able to stay on top of a huge number of deals and I
was wondering — how do you manage it all? Well Rob, we’ve tried a bunch of digital
systems, but the training was a pain and it always seemed like more trouble than it
was worth. We really only have about 5 active deals per partner and the post-it wall
works fine for that volume.
LISTENING vs SELLING
The StartupToolkit,The MomTest
WHAT?WHO? HOW?

21. Observation Score
Did the interviewee easily and definitively rank the
problems you presented?
10, 5 or 0
Is the interviewee actively trying to solve the
problem, or have they done so in the past?
8, 4 or 0
Was the interviewee engaged and focused
throughout the interview?
4, 2 or 0
Did the interviewee refer others to you for
interviews?
4, 2 or 0
Score >25 = GOOD
BenYoskovitz, Lean Analytics
MEASURE AN INTERVIEW
WHAT?WHO? HOW?

22. “I wouldn't use it - but I know people who
would”
No one will use it.
FEEDBACK

23. FEEDBACK
“It’s a GREAT concept”
Not practical. No one will use it.

24. FEEDBACK
“I could really use this if it did...”
Core product isn’t solving a real problem. No one
will use it.

25. FEEDBACK
“I would pay for this!”
Great! Sign here ;)
Need proof.

26. CUST DEV
GIVE. Give services/onboarding for free in exchange for
feedback and ‘guinea pigging’.
SHARE. Communicate the implementations based on
customer feedback.
ASK. Get referrals, testimonials, videos, social sharing,
etc...

27. EMPATHIZE. LISTEN. PERSEVERE.
bethlouisethouin@gmail.com
Twitter: @beththouin

28. RESOURCES
Validation Board (Javelin) ~ LeanStartupMachine
Usertesting.com
MTURK.com
Customer Development Reading List - Star tup Digest
CustomerDevLabs.com
SteveBlank.com