Customer Acquisition Teams CATs

Lean + Friends = Customers

I was overwhelmed.

I wanted to build my business the right way. I wanted to talk to customers, I wanted to test my assumptions.

But instead…I was doing nothing.

- Who are my “early adopters?”
- How do I find them?
- Should I survey or interview?
- How do I even ask for an interview?

I had more questions than answers, and the answers I did have, were scary…

- Talk to strangers
- Cold calls
- Troll LinkedIn
- Awkward conversations where I was asking for value, but providing none

Frustrated…disappointed…I wanted someone to ask for advice. Someone who understood Lean and could push me in the right direction. Someone I could ask “stupid” questions of.

And more than anything, I wanted someone to hold me accountable. I didn’t want a boss, but I wanted someone who I could make a promise to, and feel compelled to keep my promise. Someone to motivate me to do the difficult work of validating hypotheses.

Enter Mark: My Accountabili-Buddy

Mark Horoszowski - my Accountabilibuddy

Spinning my wheels, I reached out to my friend Mark, a fellow Lean founder, with a proposition:

Meet for coffee every week and share:
1. What we did last week
2. What we’re doing this week
3. The challenges we’re facing

During our meetings, we’d provide each other clarity, we’d brainstorm solutions to one another’s problems, we’d call BS on one another, and most importantly, we’d hold each other accountable.

“You said you were going to interview 10 customers. Did you?”

Just knowing Mark was going to ask me what I did last week motivated me to “get out of the building” – and changed everything.

Expectations Exceeded

I can’t attribute all of our successes to our coffee conversations, but some amazing things happened after we started them.

Mark launched Moving Worlds, won NWEN’s First Look Forum, and closed oversubscribed his funding round. His is the first social enterprise I know of to do so.

I pivoted hard from my app idea to helping other founders practice Lean Startup. Since then I’ve coached in Singapore, Serbia, San Juan, Seattle, San Francisco, and a host of other places that don’t start with S. I’ve mentored for Startup Weekend, Founder Institute, NEXT, Lean Startup Machine and I get to work 1-on-1 with 50+ founders every month.

In addition to our business success, Mark and I have become much closer friends. The highs and lows of entrepreneurship are unlike any other. Experiencing them with someone else makes the journey not only more successful, but more fulfilling.

"Wedding wine in yo' cup"

Last weekend I got to see Mark marry the love of his life. In Aspen. It sucked.

Introducing: Customer Acquisition Teams

I want every founder to experience what Mark gave to me. I want you to have the gift of:

- Focus: know exactly what to do next.
- Accountability: get more done…faster.
- Support: failure sucks, even when it’s expected. Talking with others helps.
- Traction: get customers faster.

Inspired by Mark, I’m proud to announce the availability of Customer Acquisition Teams.

Customer Acquisition Teams are small groups of Lean founders (4 – 6), who meet weekly via Google Hangout to provide the same kind of clarity, productivity, and motivation Mark and I found meeting at coffee shops.

Much more information here. When you’re ready to leverage other founders to get customers faster, join your team.

Deadline to Sign-up: April 15th
Spots remaining: 7

If you’re ready to practice Customer Development better, move your business forward, and get customers more quickly, it’s time to join your Customer Acquisition Teams.

Customer Acquisition Teams CATs

 

We’ll be there for you.

Getting Customer Interviews with Cold Emails

I recently started 1-on-1 mentoring sessions where one of the most popular questions has been:

“How do I ask B2B customers for an interview?”

Approaching a busy professional and asking for their time, so I could eventually sell them something, was a mystery to me when I started customer development. After some trial and error though, I found a workflow that converts pretty well.

We know Mechanical Turk can help with B2C customer interviews, but this post is all about B2B and the secrets of sending cold emails.

Step 1: Get their Email Address

There are quite a few ways to get cold contacts’ email addresses, all of which I can recommend:

And now there’s a new tool in town that I’m really excited about: Kimono.

Kimono is a free web scraper that doesn’t require writing code. If you find a web page with the contact information of customers you’d like to interview, Kimono can collect it for you automatically.  Here’s a quick video of how it works:

Kimono can do other cool things like traverse multiple pages in a results list for you (e.g. automatically click the “Next” button at the end of a list) and collect information from “subpages” (e.g. follow links on a page to gather more detailed info).  Details on those features here.
However you collect the email addresses, now it’s time to…

Step 2: Write the Email

There are 3 things a cold email must be in order to generate a response:

  1. Short
  2. Personal
  3. Valuable

Let’s take an example:

Cold Email Sample

Subject: Remote coding

Hi Sam,

I read your article on volunteering your professional skills in Guatemala – it was really inspiring. I’m looking to travel more and you’ve got me thinking about incorporating volunteering when I do!

I have a software company trying to improve remote medical record coding.

I’m not looking to sell anything, but since you have so much expertise with remote coding, I’d love to get your advice on our product so we don’t build the wrong thing.

If you’re available, I’d love to chat for just 20 minutes – Thur or Fri morning?

Thanks for any help,
Justin

Let’s see how we did:

Short? 5 sentences. That’s all you need. Any longer than that and you’re wasting their time.

Personal? This part is the most work, but it’s what’s going to separate you from the spammers. Plus, researching each of your customers to find something unique about them is going to give you incredible insight. Consider commenting on their:

  • Blog posts
  • Any professional organizations they belong to
  • Companies listed on their LinkedIn profile
  • Tweets they’ve sent

This is Important: Don’t skip this part. Without something personal in there you’re liable to get flagged as spam. If that happens enough times, you’ll forever be relegated to junk mail.

Valuable? In this case we’re offering to “improve remote medical record coding.”  Our hypothesis is that Sam has problems with her remote coding process and by hinting that we’re trying to solve them, we’re giving her a reason why spending 20 minutes with us will be worth her time.

Without this line you’re “offering” to take 20 minutes of her time, and giving nothing back. Why would she sign up for that?

Note: Be vague. You don’t want to seed your customer with the problem you’re hypothesizing. Note how the email doesn’t say anything about making “remote coding”:

  • Faster
  • Cheaper
  • More secure
  • More accurate

When we interview Sam, we want her to tell us what problems she has with remote coding – no cheating.

3 secrets to cold emails: keep it short, personal & valuable Tweet this

Bonus Secret: Ask for Advice. The line, “I’m not looking to sell anything. I’m just looking for your advice so we don’t build the wrong thing.” is not only true (you’re not selling anything), it lowers your customer’s defenses and appeals to their inner-adviser.

Step 3: Send the Email

You can send the emails one at a time, but it’s boring and monotonous to copy & paste the same email over and over again. Plus, its annoying to keep track of who has replied and who hasn’t – especially when there’s a kick ass tool like Streak.

Streak is a CRM embedded in GMail, and it’s great for a number of reasons:

  1. Mail Merge - Automate sending mass, but personalized, emails.
  2. Easy Follow-ups - Track which customers have replied and which have haven’t. Send follow-ups to those who haven’t.
  3. Scheduled Email Delivery - Write emails at 2 am, but send them at 2 pm.
Streak's mail merge is brilliantly designed.

Streak’s mail merge is brilliantly designed.

Here’s a video outlining exactly how to use Streak to request, and keep track of, customer discovery interviews:

Important: I’m no spam expert, but I’ve been told by those who are to use this tool responsibly. Make sure to personalize each email and I’d avoid sending too many of these in a 24-hour period.
Finally, be sure to consider the timing of your mail. If I’m sending cold emails, I’ll typically do so Tue – Thur early morning-ish, or Sunday afternoons. Any other times and it feels like my request will get deprioritized by other work.

Conclusion

With tools like Kimono, Streak and the 3 secrets to a great cold-email, I’ve setup interviews with a 50% success rate from complete strangers – you have everything you need to do the same!

3 Steps (and 2 cool tools) to get Customer Interviews Tweet this

If you follow these steps and no one replies, it could be back luck or…you could be solving a problem no one has.

What’s Next?

Want help getting interviews? Schedule a 1-on-1 mentoring call.

This is Part 3 of our series of on Interviewing Customers. Check these bad boys out:

  1. Which Customers Should you Interview (The SPA Treatment)
  2. How to Find Customers to Interview
  3. Getting Customer Interviews with Cold Emails
  4. How I Interview Customers
  5. You’ve Interviewed Customers. Now what?

Our next post will be…Please don’t build an MVP. Subscribe to get it via Email or RSS.

First time to Customer Development Labs?

Check out our other popular experiments:

  1. MTurk + Google News = Press
  2. Interviewing 100 customers in 4 hours with MTurk
  3. Testing your Domain Name

How I Interview Customers

Interviewing Customers is a Special Kind of Torture

  1. Talk to a stranger. Fun.
  2. That stranger is immensely busy…and hates being sold things. Getting better.
  3. That stranger will likely destroy your vision for a company. Ready to get started?!
Want help interviewing customers? Schedule a 1-on-1 mentoring call.

When I started interviewing customers, the only thing I cared less about than talking about other people’s problems, was asking about them. So, I skipped all the questions I thought were BS, and jumped to the most important ones:

“Would you use a product that does _____________?”

and

“How much would you pay for it?”

Turns out, those aren’t the most important questions…they’re the most misleading. Apparently, I am not a natural interviewer. When I realized interviewing customers meant standing in front of strangers doing something I was awful at, any enthusiasm I had towards “getting out of the building”, evaporated. When I see other founders hesitate to interview customers, or do them wrong, I empathize. I’ve been there. It’s a daunting task we have no experience with – and – isn’t nearly as fun as building stuff.

Let’s Fix That

Despite my early misgivings, learning to interview customers has become one of my most indispensable skills. Not just because it gives me a leg up on competitors, not because it helps me (in)validate ideas quickly, and not because it helps in my personal life as much as it does my professional. It’s indispensable because…

For me, interviewing customers makes customer development…fulfilling.

Instead of being stressed about what the customer is going to think about my idea, instead of fumbling over my words and worrying about the perfect way to pitch my product, a customer interview isn’t about me, my product, or my words. It’s about theirs. All I have to do is listen. No pitching, no negotiating, just ask a handful of questions with a sincere interest to learn.

Other people’s problems are interesting – when you’re in a position to solve them. Tweet this

How Not to Interview

A few ground rules I use that will prevent you from torpedoing your interviews:

1st rule of validating your idea: Do not talk about your idea. Tweet this

tyler-fight-club-quote1 Your brain is hard wired to screw you as soon as you start thinking about your idea.

Once your idea pops into your brain during an interview, your body will literally turn against you. It will start looking for validation that the idea is good. Your interpretations of statements, intonation, body language will all be skewed. What’s worse, the person you’re talking to subconsciously knows what you’re looking for, and based on our desire to build relationships, will want to help you. They’ll be your unwitting accomplice and provide the  “validation” you’re looking for – leading you in the wrong direction. To the best of your abilities, avoid thinking about your idea during the interview – and certainly avoid talking about it. These interviews are about your customers and their problems. Do your best to keep the conversation focused there.

2nd rule of validating your idea: Do not ask about the future.

No hypotheticals, no projections, no guesses. The way I remember this rule? I never ask a question with the word “would” in it:

  • “If we built a product that solved X problem, would you use it?”
  • “How much would you pay for something that did X?”
  • Would you like your existing solution better if it did X?”

When you use the word “would”, you’re making a thinly veiled attempt to validate your product…not their problem. Don’t do that. See Rule #1. In addition, when you ask about the future, you’re asking your customer to predict it. She can’t do that. She’ll try, but she’ll be wrong. Listening to wrong answers can only serve to harm you (“75% of people I talked to said they wanted…”, “Half of the interviewees said they’d pay $20″, etc.) – they’re all bad guesses. There are better ways to answer those questions.

How To Interview

There are five questions I use to form my customer interviews. Start with these, and you’ll not only to learn about your customer’s problems, you’ll learn if they’re worth solving (and how to solve them):

My Customer Interview Script
1. What’s the hardest part about      [problem context]    ?
2. Can you tell me about the last time that happened?
3. Why was that hard?
4. What, if anything, have you done to solve that problem?
5. What don’t you love about the solutions you’ve tried?

The trickiest part is figuring out what to put in the blank for Question #1. You don’t want to be so specific that you tell them about the problem you want to solve. For example, imagine you want to build Yelp for Vegetarians…

Don’t ask: “What’s the hardest part about finding a good vegetarian restaurant in a new city?”

But you also don’t want to be so broad that you’re inviting discussion about a range of problems you have no interest in solving:

Don’t ask: “What’s the hardest part about being a vegetarian?”

You want to ask about a significant problem context – situations that occurs frequently enough, or are painful enough, to warrant solving:

Ask: “What’s the hardest part about eating out as a vegetarian?”

This question will certainly evoke responses, but they could range from:

  • “The portions aren’t large enough” to
  • “I don’t really trust that the things I order are meat-free” to
  • “A yelp search for ‘vegetarian’ returns results like ‘Joe’s All American Steak House’ with comments like, ‘Don’t bring your vegetarian friends here.’”

And that’s the best part about interviews! Not only will they help you validate whether the customer has the problem you hypothesize, if they don’t, interviews will point you to one they do have. You win either way. Btw, this is one of the benefits of interviews vs. surveys. Surveys might tell you how often a customer experiences a problem, but if the answer is “not very often”, surveys won’t give you another problem to explore. Interviews will. More specifics on why we ask each of the questions in the video above, but here’s here’s the gist:

Question #2 - We ask stories because they enable us to dive deeper into paths we could never hypothesize “inside the building.” You’ll learn 23x more from a story than you will a yes/no answer. It’s science.
Question #3 - Customers don’t buy the what, they buy the why. We’ll use this answer to craft our marketing copy.
Question #4 – If they aren’t looking for solutions already, this isn’t a big enough problem for us to solve. For someone to take a bet on us, a startup, an unknown entity, we must be solving a problem so pressing, customers are actively searching for solutions.
Question #5 - This is our Unique Value Proposition. We’ll build something that solves our customer’s problem, in a way that’s better than their alternatives.

That’s the list of starter questions. Other great questions to consider adding to your script:

  • How often do you experience this problem?
  • How much are you spending to solve this problem now?
  • Where do you find information about      [problem context]     online?

That last question is great for a couple reasons: if you don’t already know, it can tell you some of your online channels and, if you’re not interviewing an early adopter (someone trying to solve this problem already), the answer to this question may point you to folks who are. There are some other recommendations I make in the video above regarding looking for emotional cues, asking why, and repeating the process with the same customer – watch it for full details.

Invalidation

If the problem you hypothesized doesn’t get mentioned during interview, you can still ask about it – just start the interview again with Question #2:

“Can you tell me about the last time you tried to find a good vegetarian restaurant in a new city?”

The trick is, you must put extra weight on their response to Question #4.

If you have to bring the problem up and they’re not taking steps to solve it, they won’t use your solution. It doesn’t matter how simple it is, how well it solves the problem, how cheap it is…none of it matters. This problem is not a big enough concern for this customer to take the time to find it, pay for it, learn it, or use it. Something must change.

Your hypothesis has been invalidated.

This scenario happens more than any other – and when it happens to you, like it’s happened to me (over, and over) – know that it’s OK. It means you’re doing it right. While disappointing, this truth is a reflection of reality. Knowing it sooner than later will serve you well.

The good news is, because you asked Question #1 & the channels question during your interviews, you’re ready to setup your next interview! Either interview another customer segment (try the online channels customers look to for additional information) or validate a different problem they’ve mentioned.

Next Steps

Armed with this information, you have everything you need to (in)validate your problem hypothesis:

Validated? You’re setup beautifully to test your unique value proposition and channels.
Invalidated? Congrats (and bummer). Good news is, you’re doing it right. Time to find a new customer segment, or a new problem.

You can search for new customers in the online channels they mentioned during the interview. If those folks don’t have the problem, time to try solving a different one - you’ll have a list of them from the responses to Question #1. Pick the most popular one.

Summary

Interviewing customers is the key to customer development. It unlocks all the most important components of the business model canvas. It’ll be the skill that distinguishes you from other startups, and it will not only tell you if you’re going in the right direction, it will give you a map if you’re not. But I promised more than that. I promised interviewing customers would make customer development fulfilling. To me…

Few things are as fulfilling as understanding someone’s problem, and helping them solve it. Tweet this

What’s Next?

Want help interviewing customers? Schedule a 1-on-1 mentoring call.

This is Part 4 of a series of Customer Discovery posts designed in collaboration with Startup Weekend NEXT. I highly recommend the others:

  1. Which Customers Should you Interview (The SPA Treatment)
  2. How to Find Customers to Interview
  3. Getting Customer Interviews with Cold Emails
  4. How I Interview Customers
  5. You’ve Interviewed Customers. Now what?

Our next post will be…5 Tools I use for Customer Development. Subscribe to get it via Email or RSS.

First time to Customer Development Labs?

Check out our most popular experiments:

  1. MTurk + Google News = Press
  2. Interviewing 100 customers in 4 hours with MTurk
  3. Testing your Domain Name