Deep-dive on customer development and pricing

1. 1
A deep-dive on Customer
Development and Pricing
for B2B startups
Sean Murphy
SKMurphy
Tue-Jan-19-2016 For Montreal LSC

2. 2
Does Your Prospect Have a Problem?
• What are the symptoms of the problem?
• What are they currently doing to address it?
• What alternatives were considered?
• What other alternatives are available to them?
• Are they still looking for a solution? Why?
copyright SKMurphy Inc.

3. 3
How Bad is the Problem?
• What parameters drive problem severity?
• What are three to six questions
• With yes, no, or number answer
• That allow you to estimate impact
• Is it improving, stable, or deteriorating?
• What trends are making it worse?
copyright SKMurphy Inc.

4. 4
Business Value Calculation
• Transition from confirming a problem is a
critical business issue
• Symptoms and diagnosis
• To assessing the impact of your solution
• Prescription and prognosis
• Severity before vs. Severity after
copyright SKMurphy Inc.

5. 5
What Does It Do? (For The Customer)
• What decisions are improved by your output?
• What can they do three minutes after they have
used your product?
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6. 6
Business Impact
Increase
• Revenue
• Capacity
• Flexibility/Agility
• Quality (match spec)
Reduce
• Cost (fixed or variable)
• Risk
• Cycle time
• Errors
copyright SKMurphy Inc.

7. 7
Calculating Value
• Impact = Severity Before – Severity After
• How much improvement do you offer?
• How often does this problem occur?
• Delta = Impact x Frequency
copyright SKMurphy Inc.

8. 8
Around the Room
Customer + Problem + Value
• Who is the buyer?
• What are they responsible for?
• How are they measured?
• What is the critical business issue:
pain, problem, or need the buyer has?
• Value of your solution
• Delta from current situation
• Three to six questions / parameters
copyright SKMurphy Inc.

9. 9
About SKMurphy
• Startup Advisor
• Customer Development for Tech Startups
• Focus: Early Revenue & Early Customers
copyright SKMurphy Inc.

10. 9
About SKMurphy
• Startup Advisor
• Customer Development for Tech Startups
• Focus: Early Revenue & Early Customers
copyright SKMurphy Inc.