ent 6,8,13
Early majority
(next 34% of customers): People in this category tend to take interest in a new product as it begins to have mass market appeal. They are both practical and extremely risk averse, preferring to wait and see how others view the technology before they buy it themselves.
Late majority
(next 34% of customers): These customers are typically skeptical, pessimistic, risk averse, and less affluent than the previous groups. However, because this group makes up such a large portion of the life cycle, they cannot be ignored. It is possible for entrepreneurs to win over this group by providing simpler products or systems at an affordable cost.
Early adopters
(next 13.5% of customers): This is the second group to adopt a product. Like innovators, they tend to buy new products shortly after they hit the market.
Decision maker example
CEO of the gaming company who decided to buy the game from the game designer
Influencer example
Celebrity endorsing the video game in a commercial
Once you have identified your beachhead market, then you can use the following three steps to successfully cross the chasm:
Create the entire product first. Position the product. Distribute the product through the right channels.
Calculate Market Size
Define your segment of the market. Conduct a top-down analysis. Conduct a bottom-up analysis. Don't forget to do sanity checks. Check out the competition.
The difference between buyer persona and customer journey map.
Personas describe in detail who your key customers are and why they feel the ways that they do. Customer journey maps show you what your customers do as they interact, including where things do and don't meet their expectations, and places where an organisation can improve to serve customers better."
SOM, or
Share of Market, is the portion of the SAM that your company is realistically likely to reach.
Direct Customer Contact .
Sitting down and talking with your customers is one of the most valuable ways to get feedback about their customer experience. It can be difficult to organize but very worthwhile if you can manage it
Saboteurs
are anyone who can veto or slow down a purchasing decision—from top managers, to friends, spouses, to even children.
Watering holes
are the places where users meet and swap information. They are also the best spots for word-of-mouth recommendations. There are many different types of watering holes, both formal and informal.
According to Organisation for Economic Co-operation and Development, three main varieties of social capital are
bonds, bridges, and linkages.
Connecting with economic buyers brings you one step closer to the
end-user customers you want to have the opportunity to buy your service or product.
Bottom-up analysis:
estimating potential sales using calculations in order to arrive at a total sales figure.
Proxy products
give you an idea of what else the user is likely to buy. For example, people who already buy from high-end fashion brands are more likely to buy an expensive piece of clothing.
Social capital is less
tangible than physical or even human capital because it "exists in the relationships among persons,"5 and the value of these relationships can be difficult to assess and measure.
cognitive comprehensiveness
a process in which team members examine critical issues with a wide lens and formulate strategies by considering diverse approaches, decision criteria, and courses of action.
-?- has grown from a social platform to a business platform—most businesses have a presence on -?-.
In addition, entrepreneur and educator Steve Blank suggests that we do not ignore the
saboteurs.
Supply
the sellers who compete for customers in the marketplace.
Demographics:
are useful data in identifying your target end user, but they may not be entirely accurate when it comes to understanding your end user
Proxy products can also display some -?- and -?- characteristics.
demographic and psychographic
end user profile consists of six items:
demographics, psychographics, proxy product, watering holes, day in the life, and biggest fears and motivators.
The SAM is a little more specific than TAM as it
describes the demand for your types of products within your reach; in this case, the café or donut market in the Baton Rouge area.
The cognitive dimension
describes the norms, visions, values, interpretations, and beliefs you may share with others, which provide a good foundation for working well together toward a common goal
top-down analysis
determining the total market using demographic data and then estimating your share of the market.
customer journey uses the five typical stages of customer interaction with a company:
discovery, research, purchase, delivery, and after the sale
product application
goods or services created to meet a demand, thereby providing a solution to a customer problem.
Being "in the tornado" means
that your product is in high demand and your business is experiencing rapid growth. During this period, it is essential to meet customer demand and ship the product efficiently.
Linkages
the connections to people or groups regardless of their position in an organization, society, or other community.
Bonds
the connections with family, friends, and others who have a similar cultural background or ethnicity.
Networking Through Social Media, which is easiest platform
There is no "right size" for the number of people on a founding team, but
two to four seems to be the typical number.
certain data are useful in confirming the findings made from your journey map
website analytics, social media tools, and direct customer contact.
heterogeneous teams
a group of people with a mix of knowledge, skills, and experience.
founding team
a group of people with complementary skills and a shared sense of commitment coming together in founding an enterprise to build and grow the company.
homogenous teams
a group of people with the same or similar characteristics such as age, gender, ethnicity, experience, and educational background.
Market sizing
a method of estimating the number of potential customers and possible revenue or profitability of a product or service.
groupthink
a phenomenon in which people share too similar a mindset, which inhibits their ability to spot gaps or errors.
market
a place where people can sell goods and services (the supply) to people who wish to buy those goods and services (the demand).
Position the product.
As the early majority tend to be pragmatists, it is important to position your product to this audience by emphasizing its value. This might involve showcasing the market share captured to date, sharing details of third-party support, providing professional endorsements, and mentioning any press coverage.
Biggest fears and motivators:
Find out what keeps your end users awake at night and identify their top priorities in order to understand their biggest fears and motivators. This exercise is best carried out by sitting with a group of end users, making a comprehensive list of all their concerns, and asking them to score their priorities from highest to lowest.
Main Street
Following the tornado, your business is likely to enter a period of calm. Your product has proven to be a success in the market and has been widely adopted. However, there is still work to be done. Now is the time to leverage your market position by further enhancing your offering to ensure that your customers do not switch to a competitor.
what is essential to end users
Gaining a deeper insight into the needs and motivations of end users is essential in the experimentation period, as their feedback will help you refine and tweak the product.
Six Steps to Creating Your Customer Journey Map
Gather a whiteboard, sticky notes, and some felt-tip markers. Identify the segment of customers you would like to map. Write down as many touchpoints as you can think of for the entire journey, one on each sticky note, and post the notes on the whiteboard. Identify three or four aspects of the customer journey you would like to explore (e.g., emotional needs, pain points, obstacles to satisfaction). Think about how you can resolve these problems and improve the customer experience, and post these ideas on the whiteboard. When you're finished, create a visual representation that shows the customer going through the process, noting the pain points, emotions, and sources of convenience.
Social Media Tools
Social media tools are also a useful source of data. For instance, SocialMention is a tool that searches blogs, comments, and videos for mentions of your brand and advises you whether those mentions are positive or negative.
TAM, or
Total Available Market, refers to the total market demand for a product or service.
-?-is Africa's largest online entrepreneurship network, which brings together venture capitalists, angels, and entrepreneurs to support Africa's rapidly growing startup scene.
VC4Africa
customer journey map
a visual representation that captures customer experience across multiple touchpoints.
incubator
an organization that helps early stage entrepreneurs refine ideas, build out technology, and get access to resources.
accelerator
an organization that provides tailored support in order to help new ventures scale and grow.
A founding team should have
core values, purpose, mission, strategy, and goals
Bottom-up analysis example
created a prototype for a new bicycle light that increases your visibility in the dark, and you want to find out if there is a profitable market for your business. First, you can look at the places bicycle lights are typically sold. The lights will most likely be sold in bike shops, retailers, and online, but you decide to focus on just bike shops for now . Second, check out the number of bike shops in the United States (a quick search on the Internet should give you an idea of the number of bike shops). Third, talk to the bike shops and see if they are willing to stock your new light. Finally, check out the number of bike lights the shops usually sell in a year.
Decision makers:
customers similar to economic buyers who have even more authority to make purchasing decisions as they are positioned higher up in the hierarchy. The ultimate decision makers do not need to be CEOs—they could also be "Mom" or "Dad," who have the power to approve purchases for their family.
The best way to build buyer personas is through real
interviews with prospective customers
Crossing the chasm
involves focusing your resources on a single, primary market first, known as a beachhead market, before winning over that market and then using that momentum to dominate larger markets.
Psychographics:
is a method used to describe the psychological attributes (attitudes, values, or fears) of your target end users.
Private information
is the type of information that is not available to the general public
The relational dimension
is what your contacts represent, such as a trusting relationship.
Impression management
paying conscious attention to the way people perceive you and taking steps to be perceived in the way you want others to see you.
Recommenders:
people who may evaluate your product and tell the public about it, such as bloggers or experts in an industry. Their opinions have the power to make or break your reputation.
TAM is all the
possible customers who visit donut shops or cafés in the United States.
Building exclusionary personas
saves you time and valuable resources by identifying the people who will never buy from you, regardless of how much effort you put into sales and marketing (e.g., people who are too advanced for your product or service, students who only engage with the information you provide but don't buy from you, or people who only buy from you at rock bottom prices)
The SOM describes the
share of the market you can realistically reach with your café in Baton Rouge. This involves working out the percentage of SAM that you could potentially service. For example, in this case, SOM may be a particular geographic radius within the city of Baton Rouge. You would need to figure out how much market share you could capture, given the amount of competition and the geographic radius.
customer
someone who pays for a product or service.
Social capital is divided into three dimensions:
the structural dimension, the relational dimension, and the cognitive dimension
"chain of customers" composed of
users, purchasers (buyers), and influencers.
innovators
(2.5% of customers): These are the first customers to try a new product.
Laggards
(final 16% of customers): People in this final category are the last to adopt a new innovation. They tend to have a negative attitude toward technology in general and have a strong aversion to change. Despite their best efforts, entrepreneurs may never be able to persuade this group that their innovation is worth a first glance, never mind going so far as to purchase it.
access to diverse skillsets.
A highly diverse network of contacts gives you a broader perspective of certain situations and enables you to trade information and skills with people who have different experiences and backgrounds from your own.
three guidelines for enrollment:
Be enrolled yourself. If you're not buying the future vision, opportunity, or team, others won't, either. Be truthful. Don't inflate the benefits beyond what they really are. Let the other person choose. Don't try hard to "convince" them—that comes across as manipulative and ultimately hurts enrollment.
Recommender example
Blogger writing positive reviews for the video game on a website
Economic buyer example
Buyer for GameStop who decided to stock the video game in the company's stores
-?- is also a useful networking tool. People can send short videos and photos to connect with others and showcase where they have been and what business activities they have been involved with. Lana Hopkins, founder of Mon Purse, an Australia-based leather bag and purse customization and personalization company, showcases her products during her global business travel. 53 Allowing people an insight into your professional life gives them the opportunity to get to know you and your business.
Top-down analysis example
business involves selling video doorbells, you may reason that if there are 300,000 people in your area, then at least 5% of the market will buy your doorbell, in which case you will make 15,000 sales. Of course, this is just a rough estimate and further research must be carried out to produce more accurate results.
beachead market
can be defined as a small market with specific characteristics that make it an ideal target to sell a new product or service.
networks can provide three types of support:
career support, psychosocial support, and role modeling
The structural dimension describes the
components of your network, such as the type of social ties you may or may not have (i.e., the contacts in your network) and the degree to which these ties may be formal or informal
consumers
customers who actually use the product or service.
Influencers (or opinion leaders):
customers with a large following who have the power to influence our purchase decisions. Sometimes the biggest influence on the success of a service or product comes from "customers" who have no involvement in it all.
Economic buyers:
the customers who have the ability to approve large-scale purchases, such as buyers for retail chains, corporate office managers, and corporate VPs. Economic buyers have the power to put your product on the shelves, physically or virtually.
End users:
the customers who will actually use your product. They will buy it (or not), touch it, operate it, use it, and tell you whether they love it or hate it.
market opportunity
the degree of customer or market demand for a specific product application
Bridges
the links that go further than simply sharing a sense of identity; for example, making connections with distant friends or colleagues who may have different backgrounds, cultures, and so on.
self-selected stakeholders
the people who "self-select" into a venture in order to connect entrepreneurs with resources in an effort to steer the venture in the right direction.
Website Analytics
If your website is already up and running, then website analytics will provide you with lots of information, including your customers' location, the amount of traffic to your site, and the number of clicks on each page.
Day in the life:
One of the most useful ways entrepreneurs can create a profile of their end users is to walk in their shoes for a day. This method is particularly effective after you have spent some time observing and talking to a group of end users.
Distribute the product through the right channels.
Penetrating the initial target segment requires direct sales and support to explain the benefits of the product. Direct sales is the least expensive and best way to create demand.
SAM, or
Serviceable Available Market, is the section of the TAM that your product or service intends to target.
End User example
Teen playing a video game
There are three factors that define a beachhead market:
The customers in that market buy similar products. Those customers have similar expectations of value. The customers use word of mouth to communicate to others in similar regions or professional organizations.
However, you can use -?- as a resource for identifying experts and getting video tutorials on a specific topic
YouTube
Create the entire product first.
Your early adopters may be forgiving of a few bugs and glitches, but your early majority won't. This is why it is so important to make sure your product is as whole as possible before you launch it.
power—
people in senior or executive positions who can provide expert advice and introduce you to other powerful people in their network. Additionally, given the depth and breadth of your own network, you may actually have power.
social capital
personal social networks populated with people who willingly cooperate, exchange information, and build trusting relationships with each other.
Characteristics of a great founding team:
possess the right skills, take a hands-on approach, use positive problem solving, leave ego at the door, share similar attitudes toward values, goals, and risk, and care deeply
There are three main advantages to networks:
private information, access to diverse skillsets, and power
Buyer personas
profiles or representations of ideal customers based on information and market research.
demand
prospective customers' desire for the goods and services available.
