Tuesday, November 8, 2011

Lean Coffee: Git Money!

Some brief notes from this morning's "Git Money" Lean Coffee TO session at Big Bang:
  • No, this was not about Git :)
  • How do you validate whether someone will pay, before you even build the product?
  • Example: Coffee Shop owners
    • Biggest problem: How to get feedback from their customers
    • Made up rough wireframes and brought them to coffee shops
    • Asked for $20, promised working software by a certain date
    • In return, they got $200 of service
    • Reduced the discount rate as more customers signed up
      • Social proof made it an easier sale
  • Would this approach work for more expensive products?
    • Potentially -- Companies sell unfinished software all the time
  • Start with a discount, and reduce that discount over time
  • What is the product is really complicated?
    • Customers may ask to see more before handing over money
    • In that case, you may need to look to a different type of "visionary" customer
  • What if your product has an existing competitor?
    • All products have some type of competition (ie. the "do nothing" alternative, or other channels that might not be "direct" competition)
  • How much do you need?
    • Depends on how good a sales person you are
    • Might be able to see just based on a conversation
    • Otherwise, might need wireframes, working prototype, etc.
  • Future discussion topic: Customer Objections