Fifth Stage: Customer Segments

Research of known effective materials:

Udacity course: How to Build a Startup, Lesson 6: Customer Segments

Sections 1-9, 13-14, 26-27

Strategyzer: A day in the Life of a customer

Strategyzer: Business Model Generation Preview Pages 20-21

Strategyzer: Customer gains trigger questions

Strategyzer: Customer pains trigger questions

Strategyzer: Customer jobs trigger questions

Strategyzer: Identify high value jobs

Strategyzer: Value Proposition Design book preview Pages 19-26


Incorporation:

Card deck 1 of 6 Overview

Customer segments
GOAL: A deep understanding of the customer persona.

Persona starts with:
What functional, social or emotional job is the customer performing?
What pains do they have?
What gains do they want?

Provide answers to the questions:
Who are they, why would they buy, why won't they buy. What do you need
to say to them?

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Card deck 2 of 6 Jobs

The tasks they are trying to perform. The problems they are trying to
solve. Or the needs they are trying to satisfy.

Functional jobs
Perform a specific task to solve a specific problem.
Mow the lawn
Eat healthy
write a report

Social jobs
Describe how customers want to be perceived by others
Look good or gain power or status
Look trendy
Be seen as competent

Emotional jobs
Customer seeks a specific emotional state
Feel good or secure
Seeking peace of mind regarding investments

Crucial or trivial?
At what frequency does it occur?
Rank each job according to its significance to the customer

What constraints and limitations are imposed on the job based on its
context?

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Card deck 3 of 6 Pains

Pains
Anything that prevents your customers from getting a job done.
Can annoy customers before, during and after trying to get a job done.
Or describes risks related to getting a job done badly or not at
all.

1. Cost
Takes a lot of time, too much money, or requires substantial efforts?

2. Feel 
What are their frustrations, annoyances, or things that give them a
headache?

3. Performance 
What features are they missing? What performance issues annoy them or
malfunctions do they cite?

4. Challenges
Do they not understand how things work, have difficulties getting
certain things done, or resist particular jobs for specific reasons?

5. Social consequences
Are they afraid of losing face, power, trust or status?

6. Risks
Are there financial, social, or technical risks. Or are they asking
themselves what could go wrong?

7. Anxiety
What are their big issues, concerns and worries?

8. Mistakes
Are they using a solution the wrong way? What common mistakes do
customers make?

9. Barriers
Are their upfront investment costs, a steep learning curve, or other
obstacles preventing adoption?

Make pains concrete
"Waiting in line for 10 minutes is a waste" 
is better than
"I hate standing in line"

Pain severity
A customer pain can be extreme or moderate, similar to how jobs can be
important or insignificant to the customer.

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Card deck 4 of 6 Gains

Gains are benefits the customer expects, desires or would be surprised
by. Gains include functional utility, social gains, positive emotions,
and cost savings.

1. Savings
Which time, money and effort reductions would they value. 

2. Quality
What would they wish more or less of? What quality levels do they
expect?

3. Existing features
What specific performance do they expect? How can you improve those
features?

4. Easier
A flatter learning curve, more services, or lower costs of ownership?

5. Positive social consequences
What increases their power or status? What makes them look good?

6. Seeking most
Are they searching for good design, guarantees, specific or more
features?

7. Feel better
What do they aspire to achieve, or what would be a big relief to them?

8. Measurements
How does your customer gauge performance or cost? How do they measure
success and failure?

9. Obstacles
What would increase the likelihood of adopting a solution?
Lower cost, lower risk, more fun, better quality?


Make gains concrete
"Performs 10 minutes faster"
is better than
"Increased performance"


Rank your gains
A customer gain can feel essential or nice to have. Make sure you are
focusing on the most important gains to the customer

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Card deck 4 of 6 Persona

Not only do you know about the pains and gains of the customers, you
specifically know who they are.  

Profile Components
position or title
demographics
role
discretionary budget
motivations
Influencers

Profile questions:
Who are you?
Why do you buy? 
Where do you buy? 
How much money do you have to spend?
What matters to you?
Who influences you?

Day in the life
Diagram what a customer does from when they get up and the products they
use and the car they drive etc.

Have a deep understanding of the customer and where your product fits.


Who is the customer in relation to others?
User->Influencer->Recommender->Decision Maker->Economic Buyer->Saboteur

Teen         Friends            Dad            Parents

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Card deck 6 of 6 Examples

Simple two sided google search summary
Multiple customer segments
Each has its own value proposition
each has it's own revenue stream
one segment cannot exist without the other
advertisers have google adwords
web searchers have free search bar


Company making kite boarding equipment
Professional kite surfers
- solely concerned with performance
Average kit surfer
- performance and cost sensitive
- "one less thing to carry" effect
Prospective kite surfer
- cost sensitive
- learning barrier


Understanding the day in the life of the customer
How does a designer spend their time putting together a architectural
product?
phase 1 design       6-8 weeks
phase 2 prototyping  3-4 weeks
phase 3 manufacturing 8-12 weeks
phase 4 final product 3-4 weeks

And our product fits right here and here's why

JerseySquare Persona

Attribute       Gasol           Junior              Becky
Age             32              15                  24
Income          $65k            N/A                 $40K
Demographics    White           White               White
Type            Jersey Buyer    Social statement    social sports viewer
Fan Type        avid            in-season           casual
Class           middle          middle              middle
Facebook Status single/compl.   single              in relationship
rental type     subscription    subscription        pay per rental

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Execution:

Update your existing business model canvases (with snapshots), and popluate the customer segment area according to what you have learned here.