Testing Your Product and Getting Feedback: Crash Course Business Entrepreneurship #7

CrashCourse
25 Sept 201912:18
EducationalLearning
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TLDRThe script discusses strategies for entrepreneurs to get valuable feedback on their minimum viable product (MVP) from potential customers. It emphasizes talking to customers early and often to understand if the product provides value. It details effective feedback methods like surveys, focus groups, interviews, and product demos. The goal is to gather quantitative and qualitative data to uncover opportunities for improvement before officially launching. It advises analyzing trends in responses and using feedback to modify the MVP so future customers get what they’re paying for.

Takeaways
  • 😀 To validate our business ideas, we need honest customer feedback on our MVP through surveys, focus groups, interviews, and product demos
  • 🤔 We should start by getting feedback from friends and family, then expand outwards to unbiased opinions from networks, cold contacts, and even strangers
  • 📝 Well-designed surveys with questions on demographics, demand, and willingness to pay can quickly get large amounts of helpful quantitative data
  • 🗣 More qualitative feedback comes from focus groups, interviews, and product demos where we can ask follow-up questions
  • 😊 Being bold, friendly, and respectful can help entrepreneurs connect with potential customers for valuable feedback
  • 📈 Analyze feedback by categorizing responses, calculating averages, and watching for larger trends instead of isolated opinions
  • 🔧 Use insights gathered to improve the MVP by tweaking designs or focusing on well-received features before officially launching
  • 🎯 The bottom line question is if target customers will buy whatever an entrepreneur is selling after gathering feedback
  • 🙌 Connections through schools, networking groups, and events can lead to crucial feedback, support, and even presale orders
  • 😥 Not all product ideas, even questionable ones like Cheetos lip balm, may get validation from initial customer feedback
Q & A
  • What are some key things entrepreneurs should validate before launching their business?

    -Entrepreneurs should validate their value proposition, minimum viable product (MVP), and there is demand for their product or service before launching through methods like surveys, focus groups, interviews, and product demonstrations.

  • Why is getting feedback on your MVP so important?

    -Getting feedback on your MVP is crucial for making improvements to your product or service before fully launching. It helps entrepreneurs understand if people will actually buy what they are trying to sell.

  • What are some places entrepreneurs can connect with to get helpful feedback?

    -Some good places to connect with are universities and colleges, entrepreneurial advocate groups, networking events, and Startup Weekends. These places can provide useful feedback, support, and connections.

  • What are some differences between quantitative and qualitative feedback?

    -Quantitative feedback involves numbers, like product ratings or willingness to pay amounts. Qualitative feedback includes people's more descriptive thoughts and opinions about a product.

  • How many survey responses should entrepreneurs aim for?

    -Entrepreneurs should aim for at least 100 survey responses, but more responses lead to more useful results and trends.

  • What does the phrase 'get out of the building' mean?

    -The phrase 'get out of the building,' coined by Steve Blank, means entrepreneurs should go talk to actual potential customers rather than just relying on their internal team's opinions.

  • What are some ways entrepreneurs can conduct surveys?

    -Surveys can be conducted through online services like SurveyMonkey, in-person interviews, phone calls, handing out physical surveys, or posting on social media.

  • Why is self-awareness an important quality for entrepreneurs?

    -Self-awareness helps entrepreneurs avoid inappropriate asks and build relationships in a respectful way as they seek feedback.

  • How should entrepreneurs interpret mixed or negative feedback?

    -Entrepreneurs should look for trends rather than focusing on a few outliers. But all feedback should inform potential product pivots or improvements.

  • What main decision should feedback inform?

    -The main decision feedback should inform is whether people will actually buy the product or service based on their needs, desires, and willingness to pay.

Outlines
00:00
🎤 Introducing Key Strategies for Getting Customer Feedback

This paragraph introduces the video series Crash Course Business: Entrepreneurship. It emphasizes the importance of talking to customers to get honest feedback on products and services. It acknowledges the awkwardness but necessity of having these conversations as entrepreneurs.

05:02
📊 Surveys Provide Flexible Ways to Get Lots of Responses

This paragraph focuses on surveys as a feedback method. It recommends having sections on target market, demand, and willingness to pay. It provides tips on creating digital or paper surveys and distributing them through networks or posting publicly.

10:04
😮 Focus Groups and Interviews Reveal More In-Depth Insights

This paragraph contrasts surveys with focus groups and interviews which provide more detailed qualitative feedback. It cautions against stalking but encourages calculated risks to connect with potential users. It emphasizes self-awareness when approaching strangers for feedback.

🤔 Analyze Trends in Quantitative and Qualitative Feedback

This paragraph discusses analyzing survey feedback using quantitative ratings and qualitative comments. It recommends collecting at least 100 survey responses and detecting trends across the data to identify opportunities for improvement.

Mindmap
Keywords
💡entrepreneur
An entrepreneur is someone who starts a business, often taking on financial risk in order to do so. The video focuses on strategies for entrepreneurs to get feedback on their business ideas. For example, the host Anna Akana identifies herself as an entrepreneur interested in getting customer opinions to develop the best possible business.
💡feedback
Feedback refers to responses, opinions, and input that entrepreneurs gather from potential customers. Getting honest, unbiased feedback is crucial for validating and improving business ideas before launching them. The video covers several strategies for soliciting feedback.
💡minimum viable product (MVP)
A minimum viable product or MVP is an early, basic version of a product or service used to gather customer feedback. Entrepreneurs test their MVPs before full development or launch. The goal is to validate the product and get suggestions for improvement from real potential users.
💡validation
Validation means testing a business idea early on to see if customers are truly interested. The video focuses specifically on validating MVPs through various feedback-gathering strategies. Validation via customer input is a form of risk management before committing fully to a business concept.
💡quantitative vs. qualitative feedback
The video distinguishes between quantitative feedback (numerical ratings or data) and qualitative feedback (descriptive input about likes, dislikes etc.) Both types are useful for analysis. Quantitative data allows for statistical analysis while qualitative data reveals trends and themes.
💡surveys
Surveys with targeted questions are one easy way to get lots of feedback from potential customers. They can gather data on demand, willingness to pay, and reactions to the MVP. The video covers best practices for effectively deploying digital or in-person surveys.
💡interviews
Interviews allow entrepreneurs to have in-depth conversations with potential customers to understand impressions and problems with an MVP. Observing users directly often yields valuable insights compared to surveys alone.
💡product demonstration
A product demo means showing the MVP in action so users can provide feedback on their real experience. Demonstrations test for aspects that may need improvement prior to launch and can generate interest and even presales.
💡pivots
A pivot means changing direction significantly based on customer feedback. For example, feedback may indicate the need to scrap certain features and focus more narrowly. Continually improving based on input can lead to better product-market fit.
💡value proposition
A value proposition explains how a product or service provides unique value or solves a problem for customers. Reviewing this helps entrepreneurs frame questions and explain their MVP when soliciting feedback.
Highlights

feedback in these early stages informs all kinds of crucial decisions

some of the trickiest customer interactions are getting people interested in our product or service in the first place

The goal of this stage in the process is putting our MVP through validation, or initial tests, before launching

We have to be the boldest versions of ourselves to send out surveys, conduct interviews, and give presentations to end up with the best business idea possible

Friends and family are a good place to make sure your questions make sense and will get you the type of feedback you’re looking for

In the age of social media, consider posting a link to your survey on Twitter, Facebook, or even Instagram

Focus groups and interviews take more time and don’t have the same reach as a survey. But the feedback can help you figure out what really needs to change, or what people truly like

Best case scenario: after hearing about the game and demoing it, people start asking when Explorers of CATopia will come out

Connections at each of these places can fundamentally change your progress, support, and feedback

Quantitative feedback involves numbers -- things like rating our product or service on a 5-point scale

Qualitative feedback is basically everything else -- people’s meandering thoughts about what they liked or didn’t like

We should try to have at least 100 responses, but more responses lead to more useful results

If a self-proclaimed technophobe says your paper-thin tablet is a huge monstrosity, you may need to ask yourself: is this one criticism from someone who will never be my customer?

We want to make sure our future customers get what they’re paying for

Next time, we’ll get into the key resources and activities that entrepreneurs juggle when starting up a business

Transcripts
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