Step 3: Build an End User Profile

Why target a specific demographic? Workshop Outline Overview Target customer Why target a specific demographic? Workshop November 23, 2018

Overview Goal of this step: Use primary market research to flesh out detailed descriptions of typical end users within your beachhead market November 23, 2018

Validate selection of beachhead market Overview Why this step? Why now? Focus on customer Validate selection of beachhead market Deepen understanding of end user Provide necessary info to calculate TAM (next step) November 23, 2018

Overview Goal of this step: Use primary market research to flesh out detailed descriptions of typical end users within your beachhead market November 23, 2018

Have a beachhead market, need to learn about target customer Overview Have a beachhead market, need to learn about target customer November 23, 2018

Why target a specific demographic? Workshop Outline Overview Target customer Why target a specific demographic? Workshop November 23, 2018

Target Customers Customer consists of: End User Decision-making Unit November 23, 2018

Target Customers Customer consists of: End User - Decision-making Unit Individual (real person) who will use your product Usually member of household or organization that purchases product Decision-making Unit November 23, 2018

Decision-making Unit – Target Customers Customer consists of: End User Decision-making Unit – Individual(s) who decide whether the customer will buy your product November 23, 2018

Three general types of decision-making units: Champion Target Customers Three general types of decision-making units: Champion Primary Economic Buyer Influencers November 23, 2018

Three general types of decision-making units: Target Customers Three general types of decision-making units: Champion – person who wants customer to purchase product Often end user Primary Economic Buyer Influencers November 23, 2018

Three general types of decision-making units: Champion Target Customers Three general types of decision-making units: Champion Primary Economic Buyer – person with authority to spend money and purchase your product Sometimes end user Influencers November 23, 2018

Three general types of decision-making units: Champion Target Customers Three general types of decision-making units: Champion Primary Economic Buyer Influencers – people who have sway or direct control over decision of Primary Economic Buyer E.g., purchasing dept. Someone with veto power CFO … November 23, 2018

First build profile of end user that is specific for TAM Target Customers First build profile of end user that is specific for TAM TAM – Total Addressable Market (next step) Focus on end user first If end user doesn’t want to use your product… Then you don’t need to bother with decision-making units November 23, 2018

Building an end user profile isn’t easy Target Customers Building an end user profile isn’t easy Takes time, thought, further research Even in narrow beachhead market, not all end users are alike Focus on specific demographic of end users November 23, 2018

Why target a specific demographic? Workshop Outline Overview Target customer Why target a specific demographic? Workshop November 23, 2018

Why Target a Specific Demographic? Even in narrow beachhead, will still find variety amongst targeted end users Young, old Urban, rural, suburban Worldly, local Different goals, fears, dreams, … November 23, 2018

Why Target a Specific Demographic? As startup- must exclude potential customers Stay focused on relatively homogenous group of end users Want to dominate a new market, quickly Get initial cash flow.. November 23, 2018

Why Target a Specific Demographic? Must constantly interact with target customers Obtain information Reconfirm information Absolutely critical for success! November 23, 2018

Why Target a Specific Demographic? Goal: create description of narrowly defined subset of end users with similar characteristics and needs Look for subset in same way as selecting beachhead market Trying to sell a product to multiple end users is tough Sales strategy for 25 year-old likely different than 50 year-old May have different feature sets TAKE HOME POINT: do NOT try to describe every end user November 23, 2018

Why Target a Specific Demographic? Characteristics to consider: Newspapers? Websites? TV shows? Gender General reason why they are buying this product? Age Income Savings? Location Image? Motivations Peer pressure? Fears What makes the special and identifiable? Heroes Vacations  Meals What is their story?  November 23, 2018

Why Target a Specific Demographic? Does your founding team have someone who fits the end user profile? Huge advantage! November 23, 2018

Why target a specific demographic? Workshop Outline Overview Target customer Why target a specific demographic? Workshop November 23, 2018

Develop an end user profile Workshop Develop an end user profile Focus on end user, not decision making units End user must be a person, not organization “walk a few miles in their shoes” November 23, 2018

Six common items in End User Profiles: Demographics Psychographics Workshop Six common items in End User Profiles: Demographics Psychographics Proxy Product Watering holes Day in the life Biggest fears and motivators November 23, 2018

Six common items in End User Profiles: Workshop Six common items in End User Profiles: Demographics - gender, age, location, education, … Psychographics Proxy Product Watering holes Day in the life Biggest fears and motivators November 23, 2018

Six common items in End User Profiles: Demographics Workshop Six common items in End User Profiles: Demographics Psychographics - attitudes, values, fears, (qualitative) Proxy Product Watering holes Day in the life Biggest fears and motivators November 23, 2018

Six common items in End User Profiles: Demographics Psychographics Workshop Six common items in End User Profiles: Demographics Psychographics Proxy Product- What other products do end users buy today? Watering holes Day in the life Biggest fears and motivators November 23, 2018

Six common items in End User Profiles: Demographics Psychographics Workshop Six common items in End User Profiles: Demographics Psychographics Proxy Product Watering holes – Reliable “place” for product information to spread by “word of mouth” by end users? Day in the life Biggest fears and motivators November 23, 2018

Six common items in End User Profiles: Demographics Psychographics Workshop Six common items in End User Profiles: Demographics Psychographics Proxy Product Watering holes Day in the life – Literally tell the story of an end user’s day Biggest fears and motivators November 23, 2018

Six common items in End User Profiles: Demographics Psychographics Workshop Six common items in End User Profiles: Demographics Psychographics Proxy Product Watering holes Day in the life Biggest fears and motivators – What keeps end users awake at night? What are their top priorities? November 23, 2018

Worksheet 03A: End User Profile for Beachhead Market Workshop Worksheet 03A: End User Profile for Beachhead Market NOTE: don’t waste time on a theoretical person Use a real person instead.. November 23, 2018