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The Workbook
Customer Validation V e r i f ication: Sales
Customer Discovery Hypothesis: The Customer Worksheet 1-b Worksheet 4-b
Customer & Demand Market Type Competitive Verify the Iterate or
Product
Problem
Distribution &
Creation Hypothesis
Verify the Verify the Verify the
Hypothesis Pricing Hypothesis
Product Sales Channel Exit
Hypothesis Hypothesis
Hypothesis Business
Roadmap Roadmap
Model
Goal of phase 1b: Develop a hypothesis of who the customer is and what problems
they have that will drive them to use your product, before you leave the building. Goal of phase 4b: You’ve gone all around the Customer Validation circle. You
assembled your sales materials, found visionary prospects and tried to sell and close 3
A u t h o r : Business Execution, Business Visionary to 5 customers. In this phase you summarize everything you learned from selling.
Approval: Founding Team and Executive Staff
Presenter: Founding Technical Team Author: Sales Closer, Business Execution
Time/Effort: 3-5 days of authoring by VP Business Execution or Business Approval: A l l
Visionary, day presentation/ strategy meeting with founding team and Presenter: Sales Closer
executive staff Time/Effort: 1-3 days of authoring by VP Business Execution or Business
Visionary, day presentation/strategy meeting with founding team and
1. Define the different types of “customer”
2. W ho will be the actual day-to-day user of the product?
executive staff
3. W ho are the influencers and recommenders?
4. W ho is the “Economic Buyer?” (I.e. whose budget paid for it?) 1. P r o s p ecting
5. Do you think the Economic Buyer has an existing budget for this product or do they need to get 2. H o w easy was it to get an appointment?
one approved? 3. Did customers understand what you wanted to sell?
6 . W ho are the “Decision Makers?”
7 . W ho else needs to approve the purchase? 4 . Presenting
5. Did you understand the real pain the buyers had?
8 . C u s tomer Visionaries understand they have a pain and can visualize that there is a solution. Where do you 6. H o w did your solution match their needs?
think you will find them? 7. Did you understand the impact on others in the company?
9. In what title or function? 8. Did you need a demo or prototype to sell?
10. In what company type? 9. W h e r e the sales materials adequate?
11. In what industry Segment?
12. R eminder: a visionary is a paying customer 10. Customer Organizational Issues
11. Did you identify the right decision makers?
13. Where in an organization you think your first customers are? 12. Did you understand the other key players in the organization?
14. What departments 13. Did you lose deals because others in the organization objected?
15. What are their titles?
16. How do they differ from later customers? (Hint: Lots in a new market, little in an existing 1 4 . Pricing
market.) 15. Did you lose deals over pricing?
16. Do you have the right pricing model?
17. What problem does the customer have? 17. What is the Average Selling Price?
18. What do you think the biggest pain is in how they work? 18. Over the next 3 years how many units will a customer buy?
19. I s it the same on all levels of the company?
20. I f they could wave a magic wand and change anything what would it be? 19. What is the lifetime value of each customer?
21. Since your product doesn’t exist, what do people do today to solve their problem? 20. Was their any objection to your pricing? (If not, your product may be priced too low—you should
D o n’t do it ?Do it badly? Don’t recognize the need? always get a modicum of grumbling.)
21. Besides the absolute price of the product, do you have the right pricing model?
22. Where on the “problem recognition scale” is each type of customer (users, recommenders, economic
buyers) 22. R O I Model
• L a t e nt Need (you recognize that the buyer needs your product but they don’t…yet) 23. Do you understand the ROI for a customer? Revenues? Costs- reduction or containment?
• A c tive Need – the Buyer is in pain (they recognizes a need but doesn’t know how to solve it) Displaced costs? Avoided costs? Productivity improvements? Time-savings? Intangible?
• H a s a vision of a solution (the buyer has a vision of how to solve their problem) 24. Is the ROI demonstrable or provable?

23. What is the organizational impact of this pain? 25. Distribution Model
24. Individual? • Are your assumptions about distribution channel correct?
25. Departmental? 26. What will the cost of the distribution channel be?
1 . C orporate?

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