Saying No

Evan Hamilton published a article on the UserVoice: Understanding Your Customers blog, “Launchrock gains one million signups during beta by saying no to customers.” As I was reading it, I realized the one thing that might be missing, is an understanding of how hard it can be to say no.

I posted this as a comment there as well, but wanted to share it with you here.

To completely over-generalize I think engineers are very good at saying, “no, unless you justify it.” So, they might have a tendency to say no to customers TOO much. But, CEO’s and bizdev, and sales people love to say, “yes of course we can do that, and it will only take two weeks to give that to you, now give us money…” Then, they get all disappointed when they find out their team cannot deliver on their promise in time.

But, the type of no I am describing here, is different from that set of yes or no. This is more like the Apple no. The–how can we create the most simple things that works without too many buttons and menus–no.

That kind of no can be very difficult for startups who are still trying to find their product/market fit. And when you are in the midst of that, you’ve got to get out of the building and talk to your customers.

And, ironically, the best way to understand your customers is to say, “no”.

“Yes, that is on our roadmap.”
“Yes, we’re already planning that.”
“Yeah, that sounds like a great idea.”

These are all ways to kill a conversation. There is nothing more for your customer to tell you, and you’ll have no idea whether you really understood their request. But, by saying no, AND keeping the conversation open, you give your customer a chance to justify their need and explain why it would make such a difference to their business.

Then, that is a perfect time for a, “maybe.”

lean isn’t just for startups

You probably already know that I am a huge proponent of lean startup and customer development theory and tactics. One of the main reasons I hung up my consultant hat and took this job at Zappos, was to explore practicing customer development in a big company. We still act like a startup sometimes, but after 11 years, 2000+ employees, and a good “exit” (aka next chapter), I think it is safe to say we are more like a big company than a startup.

I can’t wait to share more about what I am learning about applying customer development in a big company, but lets just say I’m happy to be too busy doing it to talk about it. Fortunately, the godfather has some thoughts to share about Solving the Innovator’s Dilemma – Customer Development in a Big Company. (No, really, go read that now.)

“The single biggest reason companies fail, is that they overinvest in what is, as opposed to what might be.”

[ via Gary Hamel ]

The best part for me is, rather than fighting the organization, I’m surfing the culture of my organization. My CEO just sent this article out to the management list:

[Big companies fail] not necessarily because they didn’t see the coming innovations, but because they failed to adequately invest in those innovations. To avoid this problem, the people who control large pools of capital need to act more like venture capitalists, and less like corporate finance departments. They need to make lots of bets, not just a few big ones, and they need to be willing to cut their losses.

[ via The End of Management - WSJ.com ]

customers don’t go to your site for the features, they go for the content

I really enjoyed Karen McGrane‘s talk (embedded below). Some of my favorites:

  • “People don’t go to your site to look at your templates. They go for the content.”
  • “Emphasize the real goal: not new navigation buckets, but better information for site visitors.”
  • “Our new web strategy said, ‘Organize the site around user needs rather than [features].’”
  • And, just a general recurring theme, that content creation wasn’t included in any project plans/workflows.

Karen McGrane on Web Content Strategy or “Avoiding the Eleventh hour Sh*tstorm Problem” from UX Melbourne on Vimeo.

Three-minute Rule is a Great first step into Customer Development

Most companies I have spoken with–who are reluctant to explore the customer development process–feel that talking to customers is too hard and don’t even know where to begin. The secret (there is no secret) is to just start. It is much easier to have done something, than to think about doing something. In other words, JUMP IN!

3633513264_53026f2611_m.jpg

Anythony Tjan has provided a great exercise that should make it easier get started:

You can learn a great deal about customers by studying the broader context in which they use your product or service. To do this, ask what your customer is doing three minutes immediately before and three minutes after he uses your product or service…

[ via The Three-Minute Rule - Anthony Tjan - Harvard Business Review ]

If you still need a little help, (i.e. want to wear a life jacket and an inner-tube before jumping in) then you need to learn how to ask your customers questions. The secret (there is not secret) is to just start. Pick one customer you have spoken to before (not so scary) and ask them those two questions: (1) What were you doing 3 minutes before you last used our product? (2) What were you doing 3 minutes after you last used our product?

Don’t create a form. Don’t send out a mass email. Don’t assign it to your sales team. Don’t make your intern do it. Pick up the phone and call one customer. You don’t need to promise them anything, and you better not try and defend yourself or your product. Just listen, learn, and share the love by saying thank you.

Now, you’re ready to swim in the deep end.