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.”

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!

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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.