Week 4 Customer Information Entrepreneurship Week 4 Customer Information

Business Plan - Part 1 What is the name of the business you would like to start? Describe the product you will sell or the service you will provide. Where will the product be sold or the service provided? How is your business different from existing businesses? Why would customers want your product or service? What problem does it solve? What opportunity does it create? Define their needs in detail. How important will this product or service be to your customers? How much will your product or service cost? Why would customers be willing to pay that? Prepare a customer survey. Describe the customers you will approach to test this business idea. What characteristics make them likely to buy from you (age, income, interests)? Make a list of the questions you will ask them. Due – 3:30 October 7

Ways of gathering customer information Existing Business: Check Sales History Measure Sales trends Monitor competitors Survey existing customers Experiment with product modifications Monitor Changes in the world (PESTLE)

Ways of gathering customer information McDonalds: Check Sales History – mostly sold hamburgers Measure Sales trends – trend continued Monitor competitors – Hardees created drive-thru Survey existing customers – service speed, food quality Experiment with product modifications – Hula Burger and Filet-o-fish Monitor Changes in the world – growth of car sales

Ways of gathering customer information New Business – Existing product or service (Small restaurant) Check History – are restaurants in the area opening or closing? Monitor existing competitors – do they have many customers? How big is their menu? What are their prices? Check for new competitors – New restaurants coming to the mall? Survey potential customers Monitor Changes in the world – traffic? roads? New homes? General economic conditions?

Ways of gathering customer information New Business – Existing product or service (Small cold store) Check History – are cold stores in the area opening or closing? Monitor existing competitors – do they have many customers? What products do they carry? What are their prices? Check for new competitors – new hypermarket coming? Survey potential customers Monitor Changes in the world – traffic? roads? New homes?

Ways of gathering customer information New Business – New product or service Check History of similar products Monitor close competitors Check for new competitors with the same idea Survey potential customers Monitor Changes in the world – social trends? Demographic changes? Environmental developments?

Ways of gathering customer information New Business – New product or service “Environmental water bottles” Check History of similar products – sales of reusable bottles Monitor close competitors – success of reusable bottles, location of stores, number of products, prices Check for new competitors with the same idea – Other new bottle designs Survey potential customers Monitor Changes in the world that could affect your business – social trends? Economic? Demographic? Health?

Ways of gathering customer information New Business – New product or service Chocolate Manufacture Check History of similar products – sales of sweets? Monitor close competitors – success of sweet shops, location of stores, number of products, prices Check for new competitors with the same idea – Other chocolate makers Survey potential customers Monitor Changes in the world that could affect your business – social trends? Economic? Demographic? Health?

The Customer Survey Process Create a description of the product or service Product Images Web site screens Simple Demonstrations Small samples

The Customer Survey Process 2. Carefully select potential customers to Survey Age Gender Location Income Ethnicity Social status

The Customer Survey Process 2. Carefully select potential customers to Survey “Omani Sandals” Age – 16-24 Gender - female Location – Nizwa? Muscat? Salalah? Income – above average Ethnicity - Omani Social status – above average

The Customer Survey Process Prepare questions similar to these: Have you used a similar product or service? How satisfied are you with that product or service? How would you compare that product or service to this new product or service? What is most attractive about this new product or service? What concerns do you have about this new product or service? What do you think is a fair price for this product or service? Do you want to buy this product or service now? Would you recommend this product or service to your friends?

Customer Survey Example – Chocolate Business 3. Potential questions Do you often buy chocolate? How satisfied are you with that chocolate? How would you compare this new chocolate to the chocolate you normally buy? What is most attractive about this chocolate? What concerns do you have about this chocolate? What do you think is a fair price for this chocolate? Do you want to buy some chocolate now? Would you recommend this chocolate to your friends?

Customer Survey Example – Online sandal sales 3. Potential questions Do you often buy clothing online? How satisfied are you with that process? How would you compare this web site to the website you normally use? What is most attractive about this website? What concerns do you have about this website? What do you think is a fair price for these sandals? Do you want to buy sandals now? Would you recommend this website to your friends?

Customer Survey Example – New Restaurant 3. Potential questions How often do you eat at local restaurants? Which restaurants are your favorite? How satisfied are you with those restaurants? What is most attractive about the new restaurant I described to you? What concerns do you have about this new restaurant? What do you think is a fair price for meals? Would you recommend a restaurant like this to your friends?

Customer Survey Example – Omani Tourist photos 3. Potential questions - exercise Who are your customers? What questions would you ask them?

Customer Survey Examples Taking notes Customer information – name, age, background Answers to your questions Your reactions. Did the person seem very interested? Only a little? What did you learn from this customer?

Monitoring changes in the world Next Class Monitoring changes in the world