The process begins with you turning your Bid Idea Hypothesis into a hypothesis about the minimum feature set based on the validated Monetizable Pain.
The minimum feature set represents the smallest, most focused set of features that will drive a customer purchase. Keep it super simple - a solution to the very core of the customer pain and nothing else.
In determining if you have the minimum feature set, there are three guidelines to follow:
- Look for the key themes in the conversations you have has so far. Focus on the areas that customers repeatedly discuss and try to avoid the temptation to develop something cool but tangential.
- Ask your customers! You can assess or even rate the degree to which a feature is central to solving the core customer pain, but you can also ask customers which one feature matters the most to them.
- Simplify, simplify, simplify. Focus on the absolutely core features. There is elegance in simplicity.
Test 1: Virtual Prototype Test
The focus of the first test is to discover whether your minimum feature-set hypothesis is anywhere near the mark of solving the customer pain.
Objectives:
- Develop a profile of relevant customers
- Refine your initial hypotheses about the minimum-feature-set solution
- Outline a customer-defined solution that adds value to all the relevant stakeholders
- Determine which is the best market to attack first
Develop a Customer Profile
Once you identify a key influencer within an organization, ask that person to help you organize a meeting with other key decision makers within that organization. If the pain is significant enough, they will be glad to bring together their internal buying panel.
Develop a Virtual Prototype
Google has a rule of thumb that any new ideas should be prototyped quickly and cheaply in a day, or at most a week.
Rapid virtual prototyping tools:
- Powerpoint
- Flash
- HTML
- Visio
- Creately
- Pencil and paper
Phone and In-Person Interviews to Understand How the Solution Solves the Pain
Develop an interview guide.
- Seek to understand. We believe you have this problem. Is this accurate? (Create confidence that you understand the problem but listen to understand their problem. Ask them to describe it and how they solve it.)
- Show solution. Does this solution solve your problem? (Share your virtual prototype and ask them for advice on the solution. The more specific your prototype, the better your feedback.)
- Test customer demand. What would this solution need to have for you to purchase it? (Push your customer as to whether they would actually purchase. However, as you do so, remember the purpose of this question is not to sell but to observe the customer's reaction. If you close a sale, you have validated the demand for your solution! But, if the customer hesitates, use this question to explore their concerns and understand the hurdles that stand between you and a future sale.)
Develop a Credible Company Image
Logo, business cards, website.
Craft Introductory Email and Contact Relevant Stakeholders
Consider saying things like:
"We have observed that this market issue is a challenge and are very interested in your feedback on a potential solution."
"We are creating the next version of our software, and while we are formulating our ideas we are looking to get customer feedback before we lock in the features."
Again, measure response rates. This is a strong indicator of whether you have correctly identified and verbalized the customer pain. (50% is good.)
Failing the cold-call test means A) you may have missed the pain B) you are not communicating the pain in your customer's language, or C) you may simply be speaking to the wrong customer.
Conduct Detailed Phone Interviews or Visits
Aim for 30-60 minute interviews. Key representative members of your team should listen to the phone calls as you tease out the issues with the customer. Multiple perspectives will keep you honest, reveal additional insights, and gain buy-in and understanding from team members.
Record and transcribe the meeting. After a handful of interviews, themes and trends will begin to emerge.
Don't move forward if you don't have any supporting facts. Don't lose heart. Listen honestly and adjust or restart if necessary.
Test 2: Prototype Test
At this point in the process you want to find an inexpensive way to turn your insights from the virtual prototype test into a prototype that includes only the core minimum feature set.
Develop Inexpensive, Rapid Prototype
Rapid prototyping technology suggestions:
- justinmind.com
- jmockups.com
Your prototype should be inexpensive and super fast while giving customers a picture of the solution you are proposing.
Prototype Road Show
Test your prototype in front of the buying panel of customers.
Begin by arranging on-site meetings with the full customer buying panel. Ideally, you should try to arrange a new sample of customers (fresh perspective of solution).
As before, you should prepare an interview guide and record and transcribe the conversation.
When requesting a meeting, you should higlight the pain ou are addressing, emphasize that you are not selling, and explain that you would like feedback as you create the solution. As before, your hit rate will give you some insight into whether you have correctly identified and verbalized the pain.
Sample script:
We are going ot be in your area. We are talking to so and so (one of your competitors, partners, or another individual at the organization). We would like to talk to one of your team members about this big problem (talk about the pain). We are developing this next-generation product that solces this pain. We aren't selling anything, but are in the development stage, and before we lock this product down, we'd like to get your feedback, because you are a thought leader in the space. Can we come and talk with you and your team next Thursday?
Key points:
- Communicate the pain
- Highlight you are not selling
- Reinforce that they are an important voice and thought leader
- Identify the members of the per group or competitors you will also be talking to
- Solicit feedback
Try to get all relevant buying panel people into one room at the same time.
Let your customers talk and use the prototype as a prompt to elicit their feedback. Just asking if customers "like it" is fairly useless and using the prototype to really understand if it solves the problem. The purpose of the prototype is to get specific and focused about whether this particular prototype solves the problem or not.
Refine the Minimum Feature Set
Tools:
- $100 Game - "If you had $100 to invest in any features of this product, what features would you invest in?"
- Feature Testing - A/B testing, surveys, feature tracking (keystroke tracking)
- Rating System - Ask customers to rate which features are of most value, and as a team rate which features connect most with the pain point.
Test Price Points
Be sure to find out if your customers will pay and how much.
"How much would you expect to pay or a solution like this?"
Breakthrough Questions
"Would you be willing to prepay for this product?"
"If I gave this to you for free, would you install it today system-wide?"
"Would you be willing to purchase this today?"
Test 3: Solution Test
Partner with you customers, usually through a pilot program, to take your solution through a final round of iteration to refine it into the solution customers want. At this point, your customers should be wiling to begin paying for the product. You should begin closing paid pilots or be selling your product.
Validate the Solution
Contact your customers, get the buying panel around the table, show them the solution, record the conversation, and spend your time listening. If you have nailed the solution, your customers should be excited and willing to pay if they haven't already. If you're already in a pilot, these customers should be helping you make the final refinements to commit over the long-term.
Keep listening honestly to your customers.
If customers won't pay now, they probably won't pay later.
*All taken straight from Nail it Then Scale it by Nathan Furr and Paul Ahlstrom
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