This week I’m in Kiev, talking to early stage startups in one of eastern Europe’s most interesting emerging tech markets. I’m mentoring at SeedStars, a leading international tech entrepreneurship platform that connects people and ecosystems together.
Ukrainians have a deserved reputation for cleverness and skill as engineers, but as in any very mathematically inclined culture, tech entrepreneurs here often struggle with customer oriented thinking. Because in the last few decades, most of ukraine’s tech industry has been based on outsourcing, product design thinking has not been a priority.
But that’s changing. One thing I’ve noted in my sessions so far is that local entrepreneurs are globally minded, and key to learn new tricks and mindsets in order to achieve their goals. Give me hunger over raw ambition any day: it’s clear these young tech people are looking to grow and to be part of a better future.
The Killer 5 Minute Customer Profile
The truth is, in Central Europe I have less and less occasion to talk to techies about positioning and problem oriented thinking, because the culture has become used to the ideas StartupYard has been promoting for many years.
But today I’ve pulled out an old favorite I personally love to use: the 5 minute customer persona. It’s quick, it’s dirty, but it’s a great way of challenging your thinking about what your company is really selling.
Why do a customer persona?
Most founders are used to the idea that a startup “solves problems.” The trouble is that often the “problem” as they view it is essentially “our customers don’t have our product.”
Take the case of a recruiting platform I met today. The problem they were solving, according to them, was “recruiters don’t have a single platform where they can gather all their leads.”
Maybe that is a problem, but it functions more as a description of the product. I asked the founders a simple question: would your target customer google the phrase “single platform for gathering recruiting leads?” And if so, what would they actually find there?
The answer is a ton of different products. Agencies, software, content, forums. A problem this generic has no one answer.
Enter the 5 minute Persona
Instead of defining the problem, I ask the founders to do a simple paper exercise. I write down the job title of the customer at the top of a piece of paper, and on the left margin I create three sections: Goals, Frustrstions, Fears. It looks like this:
Head of Recruitment Persona
Fill in each section (in order!) with 2-3 key points. If you aren’t sure, bracket the point. This helps show what you know and don’t know about the customer, and to get you thinking in their shoes. It’s important to phrase the points as they would be seen by the *person* behind the persona, not the company, or just the position.
The persona we built took five minutes, consisting only of me asking questions about the customer:
Head of recruitment
- Increase Deal Flow (fees)
- Train subordinates well
- Improve Pipeline value
- Turnover in the team
- High customer expectations
- Lack of deal flow
- Automation (bots, AI)
- Conflicts of interest with clients
- Competition (Cheaper? Faster?)
Pretty simple, but here’s the clever bit: I then ask the founder to state the problem by describing the fears of the customer, describe the solution as solving the frustrations mentioned, and then describe the outcome as the goals you’ve identified.
Problem: Competition and automation threaten recruiters. They need better deal flow and fewer errors to stay ahead.
Solution: a platform that helps you train your team and manage your deal flow, meeting high customer expectations faster.
Outcome: higher fees, a better team, and more business.
This pitch has been transformed into a winner in just minutes.
By starting at the “outcome” or goals, and working down to fears, you get away from your biased views of what customers need or want. First empathizing with the customer, then identifying the benefits your product offers (frustrations), and only then getting to the motivation to buy (fears), we short-circuit our biases about what’s important about the product.
Do This Often
This tool is so easy, I often feel bad for founders who don’t know it. Often they think me as if I’ve revealed some incredible secret, but this isn’t hard to put into practice at all.
In fact, you ought to do it every time you think about a customer, an investor, or even a new hire. Practicing empathy helps us to gain insight into what we know, and shows us what information and experience we lack. And practicing empathy is not rocket science.
It starts with a 5 minute routine.
StartupYard is currently accepting applications for Batch 9.
We’re looking for startup founders in Crypto, AI, IoT, and AR/VR!
Get started applying to StartupYard Batch 9. Applications close January 31st, 2018.