Fill out the form
to book a call
to book a call
*All fields are required
MVP Lab
24 May, 2024 • 4 minutes
What is Lean Customer Development?
Nearly 75% of venture startups fail simply because their teams create services that customers don’t need.
Companies often focus their efforts on making a cool product. They spend all their time working on their computers instead of talking to potential customers.
The approach where product development is driven by understanding customers is called Lean Customer Development.
Companies often focus their efforts on making a cool product. They spend all their time working on their computers instead of talking to potential customers.
The approach where product development is driven by understanding customers is called Lean Customer Development.
What is Lean Customer Development?
Nearly 75% of venture startups fail simply because their teams create services that customers don’t need.
Companies often focus their efforts on making a cool product. They spend all their time working on their computers instead of talking to potential customers.
The approach where product development is driven by understanding customers is called Lean Customer Development.
Companies often focus their efforts on making a cool product. They spend all their time working on their computers instead of talking to potential customers.
The approach where product development is driven by understanding customers is called Lean Customer Development.
The term "Lean" comes from the work principles developed at Toyota. It means building processes that are efficient and waste-free. In manufacturing, waste occurs due to poor space utilization, lack of conveyor belts, and automation. But where does waste come from in IT product development?
It comes from not knowing what exactly needs to be developed. It’s the “build the product first, then figure out who needs it” approach.
Lean Customer Development evangelist Cindy Alvarez believes that talking to customers is key to efficient production in IT. Just one hour of talking to your target audience can save dozens of unnecessary development hours.
The Lean Customer Development concept means you start building your customer community at the same time as you start building your product, not after. First, you talk to customers to understand their problems, then you think about how to solve them, not the other way around.
Here’s how Lean Customer Development works:
1. Collect assumptions about your target audience.
2. Conduct interviews (CustDev) with potential users.
3. Analyze the information gathered.
In this article, we’ll discuss how to formulate assumptions about customers and why it’s important. We’ll cover the second and third steps in separate articles.
It comes from not knowing what exactly needs to be developed. It’s the “build the product first, then figure out who needs it” approach.
Lean Customer Development evangelist Cindy Alvarez believes that talking to customers is key to efficient production in IT. Just one hour of talking to your target audience can save dozens of unnecessary development hours.
The Lean Customer Development concept means you start building your customer community at the same time as you start building your product, not after. First, you talk to customers to understand their problems, then you think about how to solve them, not the other way around.
Here’s how Lean Customer Development works:
1. Collect assumptions about your target audience.
2. Conduct interviews (CustDev) with potential users.
3. Analyze the information gathered.
In this article, we’ll discuss how to formulate assumptions about customers and why it’s important. We’ll cover the second and third steps in separate articles.
The term "Lean" comes from the work principles developed at Toyota. It means building processes that are efficient and waste-free. In manufacturing, waste occurs due to poor space utilization, lack of conveyor belts, and automation. But where does waste come from in IT product development?
It comes from not knowing what exactly needs to be developed. It’s the “build the product first, then figure out who needs it” approach.
Lean Customer Development evangelist Cindy Alvarez believes that talking to customers is key to efficient production in IT. Just one hour of talking to your target audience can save dozens of unnecessary development hours.
The Lean Customer Development concept means you start building your customer community at the same time as you start building your product, not after. First, you talk to customers to understand their problems, then you think about how to solve them, not the other way around.
Here’s how Lean Customer Development works:
1. Collect assumptions about your target audience.
2. Conduct interviews (CustDev) with potential users.
3. Analyze the information gathered.
In this article, we’ll discuss how to formulate assumptions about customers and why it’s important. We’ll cover the second and third steps in separate articles.
It comes from not knowing what exactly needs to be developed. It’s the “build the product first, then figure out who needs it” approach.
Lean Customer Development evangelist Cindy Alvarez believes that talking to customers is key to efficient production in IT. Just one hour of talking to your target audience can save dozens of unnecessary development hours.
The Lean Customer Development concept means you start building your customer community at the same time as you start building your product, not after. First, you talk to customers to understand their problems, then you think about how to solve them, not the other way around.
Here’s how Lean Customer Development works:
1. Collect assumptions about your target audience.
2. Conduct interviews (CustDev) with potential users.
3. Analyze the information gathered.
In this article, we’ll discuss how to formulate assumptions about customers and why it’s important. We’ll cover the second and third steps in separate articles.
1. Formulate Initial Assumptions About Your Project
Lean Customer Development starts with building assumptions about:
Consumers: Their problems, how they think, and make decisions.
Resources: Your partners and how you can promote the product.
Product: What it should be like and how it will differ from competitors.
It may seem like you know everything necessary for your project. That you and your team share the same vision. In reality, your perceptions may differ significantly and be far from reality.
Here’s a practical exercise to gather initial information:
Step 1: Gather your team, grab sticky notes (or use Miro), set a timer, and start writing down everything that comes to mind. Important: one thought per note.
Step 2: Group the notes by similar thoughts and themes.
Step 3: Based on the collected information, fill out a Lean Canvas. Don’t try to complete all columns. The empty ones will show where you lack information.
This way, you’ll get a complete picture of your project. As you work with customers, this canvas will evolve: you’ll test your assumptions and replace them with real facts.
Consumers: Their problems, how they think, and make decisions.
Resources: Your partners and how you can promote the product.
Product: What it should be like and how it will differ from competitors.
It may seem like you know everything necessary for your project. That you and your team share the same vision. In reality, your perceptions may differ significantly and be far from reality.
Here’s a practical exercise to gather initial information:
Step 1: Gather your team, grab sticky notes (or use Miro), set a timer, and start writing down everything that comes to mind. Important: one thought per note.
Step 2: Group the notes by similar thoughts and themes.
Step 3: Based on the collected information, fill out a Lean Canvas. Don’t try to complete all columns. The empty ones will show where you lack information.
This way, you’ll get a complete picture of your project. As you work with customers, this canvas will evolve: you’ll test your assumptions and replace them with real facts.
1. Formulate Initial Assumptions About Your Project
Lean Customer Development starts with building assumptions about:
Consumers: Their problems, how they think, and make decisions.
Resources: Your partners and how you can promote the product.
Product: What it should be like and how it will differ from competitors.
It may seem like you know everything necessary for your project. That you and your team share the same vision. In reality, your perceptions may differ significantly and be far from reality.
Here’s a practical exercise to gather initial information:
Step 1:
Gather your team, grab sticky notes (or use Miro), set a timer, and start writing down everything that comes to mind. Important: one thought per note.
Step 2:
Group the notes by similar thoughts and themes.
Step 3:
Based on the collected information, fill out a Lean Canvas. Don’t try to complete all columns. The empty ones will show where you lack information.
Consumers: Their problems, how they think, and make decisions.
Resources: Your partners and how you can promote the product.
Product: What it should be like and how it will differ from competitors.
It may seem like you know everything necessary for your project. That you and your team share the same vision. In reality, your perceptions may differ significantly and be far from reality.
Here’s a practical exercise to gather initial information:
Step 1:
Gather your team, grab sticky notes (or use Miro), set a timer, and start writing down everything that comes to mind. Important: one thought per note.
Step 2:
Group the notes by similar thoughts and themes.
Step 3:
Based on the collected information, fill out a Lean Canvas. Don’t try to complete all columns. The empty ones will show where you lack information.
This way, you’ll get a complete picture of your project. As you work with customers, this canvas will evolve: you’ll test your assumptions and replace them with real facts.
This way, you’ll get a complete picture of your project. As you work with customers, this canvas will evolve: you’ll test your assumptions and replace them with real facts.
2. Formulate Assumptions About the Problem
The next step in gathering assumptions is to formulate the problem you plan to solve.
The problem is the foundation for creating your basic hypothesis, the first thing you need to test. If you get the problem wrong, your product won’t be needed by anyone.
To formulate the problem, write it down as follows:
“I believe that some people [Who?] face such-and-such problem [What?] due to a lack of [Why?].”
Where “Who?” refers to the people who encounter the problem. You’ll interview them later.
“What?” is the problem itself.
Pay special attention to the “Why?” question. It describes why the problem exists or explains what difficulties customers face when trying to solve it. The answer to this question often contains ideas for new, needed products.
These problem statements are the first hypotheses you need to test during interviews. But before you start interviewing, there’s one more step in gathering assumptions — forming your understanding of potential users.
The problem is the foundation for creating your basic hypothesis, the first thing you need to test. If you get the problem wrong, your product won’t be needed by anyone.
To formulate the problem, write it down as follows:
“I believe that some people [Who?] face such-and-such problem [What?] due to a lack of [Why?].”
Where “Who?” refers to the people who encounter the problem. You’ll interview them later.
“What?” is the problem itself.
Pay special attention to the “Why?” question. It describes why the problem exists or explains what difficulties customers face when trying to solve it. The answer to this question often contains ideas for new, needed products.
These problem statements are the first hypotheses you need to test during interviews. But before you start interviewing, there’s one more step in gathering assumptions — forming your understanding of potential users.
2. Formulate Assumptions About the Problem
The next step in gathering assumptions is to formulate the problem you plan to solve.
The problem is the foundation for creating your basic hypothesis, the first thing you need to test. If you get the problem wrong, your product won’t be needed by anyone.
To formulate the problem, write it down as follows:
“I believe that some people [Who?] face such-and-such problem [What?] due to a lack of [Why?].”
Where “Who?” refers to the people who encounter the problem. You’ll interview them later.
“What?” is the problem itself.
Pay special attention to the “Why?” question. It describes why the problem exists or explains what difficulties customers face when trying to solve it. The answer to this question often contains ideas for new, needed products.
These problem statements are the first hypotheses you need to test during interviews. But before you start interviewing, there’s one more step in gathering assumptions — forming your understanding of potential users.
The problem is the foundation for creating your basic hypothesis, the first thing you need to test. If you get the problem wrong, your product won’t be needed by anyone.
To formulate the problem, write it down as follows:
“I believe that some people [Who?] face such-and-such problem [What?] due to a lack of [Why?].”
Where “Who?” refers to the people who encounter the problem. You’ll interview them later.
“What?” is the problem itself.
Pay special attention to the “Why?” question. It describes why the problem exists or explains what difficulties customers face when trying to solve it. The answer to this question often contains ideas for new, needed products.
These problem statements are the first hypotheses you need to test during interviews. But before you start interviewing, there’s one more step in gathering assumptions — forming your understanding of potential users.
3. Formulate Assumptions About Your Target Audience (TA)
In Lean Customer Development, the foundation of your business isn’t the product, but the customers and their problems. If you identify your target audience (TA) and their needs correctly, the product becomes just a tool for generating profit.
We discussed how to formulate a hypothesis about the problem in the previous section. Now, let's talk about how to create a profile of your customers – specifically, your assumptions about them.
Answering the question “Who is my target audience?” is crucial at this stage, even if you're not entirely sure yet. First, you assume who your TA is, then you approach them and conduct interviews to confirm (or refute) your assumptions.
Simply describing your audience using social-demographic characteristics isn’t enough. At this stage, it's also important to assume their behavioral motives, as these determine why they have the problem.
For example, you might hypothesize that “Elderly people find it difficult to travel because there are no booking services with user-friendly interfaces for them.” The term “elderly people” is very broad. Are you referring to those who prefer tried-and-true solutions or those who take computer literacy courses to keep up with technological progress?
Therefore, describe your customers' decision-making motives.
You can use the following questions to help:
What’s more important to them: time or money?
Do they make decisions independently or follow someone else's advice?
Do they prefer to lead or follow?
Do they spend money on things or experiences?
What is their level of technical proficiency?
Do they make frequent purchases or stick with one product for a long time?
Do they like surprises or prefer predictability?
In our example, the assumption about the target audience would be: “Our audience is elderly people aged 55-70 with a basic level of technical proficiency. For them, emotions are more important than things, and maintaining their independence in life is crucial.”
We discussed how to formulate a hypothesis about the problem in the previous section. Now, let's talk about how to create a profile of your customers – specifically, your assumptions about them.
Answering the question “Who is my target audience?” is crucial at this stage, even if you're not entirely sure yet. First, you assume who your TA is, then you approach them and conduct interviews to confirm (or refute) your assumptions.
Simply describing your audience using social-demographic characteristics isn’t enough. At this stage, it's also important to assume their behavioral motives, as these determine why they have the problem.
For example, you might hypothesize that “Elderly people find it difficult to travel because there are no booking services with user-friendly interfaces for them.” The term “elderly people” is very broad. Are you referring to those who prefer tried-and-true solutions or those who take computer literacy courses to keep up with technological progress?
Therefore, describe your customers' decision-making motives.
You can use the following questions to help:
What’s more important to them: time or money?
Do they make decisions independently or follow someone else's advice?
Do they prefer to lead or follow?
Do they spend money on things or experiences?
What is their level of technical proficiency?
Do they make frequent purchases or stick with one product for a long time?
Do they like surprises or prefer predictability?
In our example, the assumption about the target audience would be: “Our audience is elderly people aged 55-70 with a basic level of technical proficiency. For them, emotions are more important than things, and maintaining their independence in life is crucial.”
3. Formulate Assumptions About Your Target Audience (TA)
In Lean Customer Development, the foundation of your business isn’t the product, but the customers and their problems. If you identify your target audience (TA) and their needs correctly, the product becomes just a tool for generating profit.
We discussed how to formulate a hypothesis about the problem in the previous section. Now, let's talk about how to create a profile of your customers – specifically, your assumptions about them.
Answering the question “Who is my target audience?” is crucial at this stage, even if you're not entirely sure yet. First, you assume who your TA is, then you approach them and conduct interviews to confirm (or refute) your assumptions.
Simply describing your audience using social-demographic characteristics isn’t enough. At this stage, it's also important to assume their behavioral motives, as these determine why they have the problem.
For example, you might hypothesize that “Elderly people find it difficult to travel because there are no booking services with user-friendly interfaces for them.” The term “elderly people” is very broad. Are you referring to those who prefer tried-and-true solutions or those who take computer literacy courses to keep up with technological progress?
Therefore, describe your customers' decision-making motives.
You can use the following questions to help:
What’s more important to them: time or money?
Do they make decisions independently or follow someone else's advice?
Do they prefer to lead or follow?
Do they spend money on things or experiences?
What is their level of technical proficiency?
Do they make frequent purchases or stick with one product for a long time?
Do they like surprises or prefer predictability?
In our example, the assumption about the target audience would be: “Our audience is elderly people aged 55-70 with a basic level of technical proficiency. For them, emotions are more important than things, and maintaining their independence in life is crucial.”
We discussed how to formulate a hypothesis about the problem in the previous section. Now, let's talk about how to create a profile of your customers – specifically, your assumptions about them.
Answering the question “Who is my target audience?” is crucial at this stage, even if you're not entirely sure yet. First, you assume who your TA is, then you approach them and conduct interviews to confirm (or refute) your assumptions.
Simply describing your audience using social-demographic characteristics isn’t enough. At this stage, it's also important to assume their behavioral motives, as these determine why they have the problem.
For example, you might hypothesize that “Elderly people find it difficult to travel because there are no booking services with user-friendly interfaces for them.” The term “elderly people” is very broad. Are you referring to those who prefer tried-and-true solutions or those who take computer literacy courses to keep up with technological progress?
Therefore, describe your customers' decision-making motives.
You can use the following questions to help:
What’s more important to them: time or money?
Do they make decisions independently or follow someone else's advice?
Do they prefer to lead or follow?
Do they spend money on things or experiences?
What is their level of technical proficiency?
Do they make frequent purchases or stick with one product for a long time?
Do they like surprises or prefer predictability?
In our example, the assumption about the target audience would be: “Our audience is elderly people aged 55-70 with a basic level of technical proficiency. For them, emotions are more important than things, and maintaining their independence in life is crucial.”
Conclusion
The main idea of Lean Customer Development is to understand that before verification, all ideas are just assumptions. But before you start verifying, you need to gather and formulate these assumptions.
For more on how to work with these assumptions, conduct interviews, and analyze results, read our upcoming articles.
For more on how to work with these assumptions, conduct interviews, and analyze results, read our upcoming articles.
conclusion
The main idea of Lean Customer Development is to understand that before verification, all ideas are just assumptions. But before you start verifying, you need to gather and formulate these assumptions.
For more on how to work with these assumptions, conduct interviews, and analyze results, read our upcoming articles.
For more on how to work with these assumptions, conduct interviews, and analyze results, read our upcoming articles.
MVP Lab is now
on WhatsApp channel!
on WhatsApp channel!
Follow us to see our cases and get some tips and insights based on our product development experience
Fill out the form to book a call
By clicking on the button, I agree to the processing of my personal information on the terms defined by the Privacy Policy
© 2018 – 2023 MVP Lab
Follow us on LinkedIn
Follow us on WhatsApp Channel
