I’ve written about market segmentation before both on this blog and as an important concept to understand in The Entrepreneur’s Guide to Customer Development. I think it is vital to grasp because it’s fundamental to achieving Product-Market fit and building a scalable business. I’m writing about it again because it has come to my attention that I have perhaps not explained one of its primary precepts well enough.
As I wrote before, Geoffrey Moore in Crossing the Chasm defined a market segment as:
* a set of actual or potential customers
* for a given set of products or services
* who have a common set of needs or wants, and
* who reference each other when making a buying decision.
Most of this is pretty intuitive. In a nutshell, a market segment is comprised of like buyers who share the same pain. But there’s more to it. The reference part trips some people up. The key point to understand is that the customers and potential buyers must be willing AND able to reference each other.Read More »
The toughest part about practicing customer development is getting started. You already know that customers are not going to magically find you because you have a great product, work hard and are good looking. Now that you've realized how big the world is and that using a megaphone from your roof top is a poor method of user acquisition, what's next?
Presumably if you are committed to the principles of customer development, you are already committed to "getting out of the building." Before you can interview potential customers, however, you have to find potential customers to interview. Unfortunately, there are no magic bullets. This is painstaking work. Just as with other portions of the customer development model, to find early adopters you make assumptions, test, and iterate. If you are having trouble getting started, try these steps: Read More »