Test your Business Model Canvas: the Customer Interview

Summary

In this video, Steve Morris discusses the importance of conducting customer interviews for testing hypotheses in your business model. He advises entrepreneurs to approach these interviews with an open mind, avoiding confirmation bias, and to ask follow-up questions based on customer responses. Morris recommends doing interviews in two rounds, focusing first on understanding the customer's needs and then assessing how the proposed solution meets those needs. He also emphasizes the value of face-to-face interviews and suggests involving the founding team due to their deeper understanding of the business context.

Takeaways

• 🔍 Customer interviews are crucial for testing hypotheses in the business model canvas and are part of the customer discovery process.
• 🎯 The primary goal of customer interviews is to validate hypotheses about value propositions, customer pain points, and gains, rather than selling a product.
• 🧐 Confirmation bias can skew customer discovery; it's important to remain open-minded and seek feedback that challenges existing beliefs.
• 🗣️ Interviews should not be a fixed list of questions but a dynamic conversation that allows for follow-up questions based on customer responses.
• 👥 Face-to-face interviews are preferred for better understanding and observing body language, but video calls can be a good alternative.
• 📈 Conduct interviews in two rounds: first focusing on customer needs and later on validating if the product or service meets those needs.
• 👥 It's recommended to have a two-person team for interviews, with one person focusing on asking questions and the other on note-taking.
• 👤 Founders are often the best interviewers due to their deep understanding of the business context and the problem they aim to solve.
• 🔢 Interview at least 30 prospective customers to gather a diverse range of feedback and insights.
• 💡 Finding prospective customers requires creativity and getting out of your comfort zone; leverage your team for brainstorming potential sources.
• 📝 Prepare a script to convince potential interviewees that the conversation is not a sales pitch but a request for their insights and time.

Q & A

What is the primary purpose of conducting customer interviews?

The primary purpose of conducting customer interviews is to test key hypotheses in your business model canvas, also known as customer discovery. It helps in understanding the customer's perspective on the job to be done, pain to be avoided, and gain to be realized.

Why is it important to verify the dissatisfaction with current solutions during customer interviews?

Verifying dissatisfaction with current solutions helps to ensure that your solution addresses the job, pain, and gain better than existing solutions, which is crucial for validating the value proposition of your product or service.

What are some hypotheses that customer interviews help in testing?

Customer interviews help in testing hypotheses around value proposition, customer relationships, channels, selling and marketing strategies, and revenue streams, including verifying that customers are willing to pay the expected amount.

Why should the customer interview process not be treated as a sales pitch?

The customer interview process should not be treated as a sales pitch because the goal is to test hypotheses rather than broadcasting a sales message. The focus should be on asking questions to gather information and potentially adjust hypotheses based on customer feedback.

What is confirmation bias and how can it affect customer interviews?

Confirmation bias is the tendency to favor information that confirms one's existing beliefs. In customer interviews, it can lead to overlooking or dismissing feedback that contradicts preconceived notions, which can compromise the accuracy of hypothesis testing.

Why is it recommended to have a two-round interview process?

A two-round interview process is recommended to first understand the customer's perspective on their needs and pain points without the influence of your product. The second round then focuses on verifying if your solution meets those needs, ensuring a more accurate assessment.

What is the significance of face-to-face interviews in customer discovery?

Face-to-face interviews are significant because they allow for probing questions and observing body language, which can provide deeper insights into customer feelings and reactions that might not be conveyed through other mediums.

How many customer interviews are recommended for effective customer discovery?

It is recommended to conduct at least 30 customer interviews for effective customer discovery. More interviews provide a broader range of feedback and insights, which can lead to a better understanding of customer needs.

Why is it suggested to have a two-person team for customer interviews?

Having a two-person team allows one person to focus on asking questions and listening to the customer while the other takes notes. This setup ensures that the interviewer can maintain the flow of conversation without being distracted by note-taking.

How can founders find prospective customers for interviews?

Founders can find prospective customers for interviews by brainstorming as a team, leveraging their network, and getting creative about where to find customers. They may need to get outside their comfort zone and be persistent in seeking out potential interviewees.

What is the recommended approach to convince prospective customers to participate in interviews?

The recommended approach is to clearly communicate that the interaction is not a sales pitch but an opportunity for the customer to help a startup understand their needs better. A well-crafted script can help in getting customers to agree to participate in the interview.