1. lean entrepreneur
getting started
segmentation & value stream
Brant Cooper
Dublin, Ireland
May 1, 2012

2. Doctor as
Entrepreneur
Patient comes in complaining of chest pains.
Dr. says “I’ve got a great idea...”

3. Real Doctor
Deep understanding of symptoms
(Customer Development)
Lab tests based on (Validity Testing)
Diagnose based on knowledge, experience,
intuition (Data)
Treatments based on iterative learning
(scientific method)

4. Innovation Spectrum
Sustaining Disruptive
Innovation re-segmented low cost re-segmented niche rippling innovation Innovation

5. Innovation Spectrum
Sustaining Disruptive
Innovation re-segmented low cost re-segmented niche rippling innovation Innovation
Problem is well understood
Existing market
Innovation improves performance,
lowers cost, incremental changes

6. Innovation Spectrum
Sustaining Disruptive
Innovation re-segmented low cost re-segmented niche rippling innovation Innovation
Problem is well understood
Existing market
Innovation improves performance,
lowers cost, incremental changes
Customer is believable
Market is predictable
Traditional business methods sufficient

7. Innovation Spectrum
Sustaining Disruptive
Innovation re-segmented low cost re-segmented niche rippling innovation Innovation
Problem is well understood Problem not well understood
Existing market New market
Innovation improves performance, Innovation is dramatic, game
lowers cost, incremental changes changing
Customer is believable
Market is predictable
Traditional business methods sufficient

8. Innovation Spectrum
Sustaining Disruptive
Innovation re-segmented low cost re-segmented niche rippling innovation Innovation
Problem is well understood Problem not well understood
Existing market New market
Innovation improves performance, Innovation is dramatic, game
lowers cost, incremental changes changing
Customer is believable Customer doesn’t know
Market is predictable Market is unpredictable
Traditional business methods sufficient Traditional business methods fail

9. Optimize inside out
Reach
Acquisition
Funnel
Activation
Passion
Engagement

10. documenting assumptions
• Many tools
• Business Model Canvas
• Lean Canvas
• Startup toolkit
• Unassumer
• But how?

11. market segmentation
• People who share the same pain and speak
the same language.
• Obsessively sub segment
• Product-Market fit is driven by nailing core
value proposition for hyper segmented
markets

12. market size
• Growth is determined by multiple hyper
segmented markets.
• Tackling multiple segments
• “Bowling Pin” strategy

13. segment clues
• Different level pain or passion
• Seek to solve problem differently
• Require different marketing
• Require different distribution
• Require different sales
• Not necessarily demographic-based
• Not “verticals”

15. exercise #1
• Create a persona for your most valuable
segment
• Create the persona of an anti-segment
• Add influencers and hang outs to your
segment
• Add any other demographic or
firmographic data that describes your
segment

16. Customer States
Passionate
Satisfied
Eager
Convinced
Trusting
Intrigued
Curious

17. Customer Motivation
Passionate
Quick, Easy,
Accurate
Satisfied
Dashboard, survey,
assumption creation
solved problem
Eager
Need to know market
signal
Convinced
Trial demonstrated value
Trusting
Respected
testimonials
are positive
Intrigued
Messaging
showed
promise
Curious
Read about
product on 3rd
party blog

18. Customer Action
Refer product to others;
keep subscription
Passionate
Quick, Easy,
Accurate One survey/week, check signal daily
Satisfied
Dashboard, survey,
assumption creation Create survey and share
solved problem
Eager
Need to know market
signal Buy
Convinced
Trial demonstrated value Sign up for trial
Trusting
Respected
testimonials Read web site
are positive
Intrigued
Messaging
showed Visit landing page
promise
Curious
Read about
product on 3rd
party blog

19. exercise #2
• create your value stream:
• why are you users passionate?
• what specifically did your customers do
with your product that satisfied them?
• why are your customers eager to try
your product for real? what is their goal?
what job did they hire your product for?
• what convinced your customer to buy?
• what specific steps occurred that led
your customer from unaware to trusting?

20. what do business care about?
 Business:  People:
 Increasing revenue  Want promotion
 Increasing market  Job Security
 Protect budget
share
 Personal risk
 Decreasing costs
 Business risk

21. what do you need to figure out?
 Who is the buyer?  Pilot Required?
 Different than user?  Length of sales cycle
 Where does budget come  Channel requirements?
from?
 Who will obstruct?
 What is purchase process?
 Who is your champion?

22. what do consumers care about?
 People (rational):  People (irrational)
 Cost  Emotions
 Elimination of pain  Social status
 Fulfillment of passion  Sunken cost
 Self-perception
 Risk avoidance

23. what you need to figure out
 Who has pain / passion?  What do they dream /
 Who are influencers? worry about?
 Who do they influence?  What characteristics
 What are hidden drivers? are shared with like
 What are adjacent buyers?
passions / pains?  Where do they live?
 What makes them secure?3  What do they require
to buy? Demo? Trial?

24. LeanEntrepreneur.co