Customer Discovery

In the fast-paced world of software product management, understanding your customers is paramount to success. This blog post will delve into the customer discovery process, emphasizing the importance of a product mindset and outlining key activities that every product manager should undertake.

The Product Mindset: The Foundation of Customer Discovery

Before diving into customer discovery, it's crucial to cultivate a product mindset. This mindset rests on three fundamental tenets:

1. Clear identification of your target customer persona (and who isn't)

2. Deep understanding of your target customer's pain points and problems

3. Recognition of the business and shareholder value in addressing these pain points

With this mindset, you're ready to embark on the customer discovery journey.

The Customer Discovery Process: A Laundry List for Product Managers

1. User Research and Supporting Numbers

Gather quantitative and qualitative data about your users. This could involve surveys, interviews, and analysis of user behavior metrics.

2. Develop a Persona

Create a detailed persona that includes a story, goals, motivations, and needs. Remember:

• Pain points encompass fears, anxieties, frustrations, hopes, and dreams of a user.

• For B2B personas, consider everyone from executives to engineers as end-users.

• Gather B2B customer insights through:

  • Salespeople (listen and observe, don't propose solutions)

  • Professional contacts

  • Industry conferences

  • Training programs

  • Meetups

  • Slack channels and forums

Customer discovery's primary goal is to identify your main user's personas and user needs. This involves thorough research and analysis of your target market. 

3. Develop an Anti-Persona

An anti-persona helps with prioritization and saying "no" to stakeholders when necessary.

Identify Non-Users: Determine who is unlikely to use the product or who might have characteristics that disqualify them as target users.

Gather Data: Use market research, surveys, and user feedback to gather data about these non-users.

Define Characteristics: Outline the demographic, psychographic, and behavioral attributes of the anti-persona.

Document Scenarios: Describe scenarios or reasons why these individuals would not use or benefit from the product.

4. Set Objectives for OKRs and formulate Key Results

Based on your persona and anti-persona, establish clear objectives for your OKRs (Objectives and Key Results).

Setting OKRs (Objectives and Key Results) involves creating ambitious, uncomfortable objectives that align with higher-level business goals and are informed by customer needs, numbers, and user research. It's crucial to focus on the "why" behind these objectives, ensuring clarity and purpose rather than merely listing deliverables. The process involves collaboration across teams: engineering defines the "how," program management determines the "when," and product managers focus on "who" they are serving, and with "what", maintaining a balance of 40% on product discovery (personas, strategy, customer journey, jobs to be done, product roadmap) and 60% on execution. The PM should work closely with the sales team to stay customer-focused and avoid becoming too entrenched in technical details. Following the PM Manifesto, ensure the roadmap is solid for at least four months with strong customer buy-in, deliverables and requirements are clear, OKRs are being met, and continuously identify what prevents delivering more value. By being outcome-focused rather than output-driven, you can ensure that all efforts contribute to meaningful improvements and business success. 

5. Figure Out Jobs to Be Done

Identify the tasks customers are trying to accomplish. Focus on minimizing likelihood, frequency, and amount of effort required.

6. Customer Journey Mapping

Map out the customer's journey, considering what they're thinking, feeling, doing, and how they're interacting at each stage. Remember:

• Each step should represent a customer problem or need you're trying to optimize.

• Focus on the problem space, not the solution.

• Avoid inside-out thinking; people care about their problems, not your product.

7. Develop a Product Roadmap

Organize your plans into "Now," "Next," and "Later" categories.

The Importance of Continuous Discovery

Customer discovery isn't a one-time activity. As markets evolve and customer needs change, it's crucial to continuously engage in discovery activities. This ongoing process ensures that your product remains aligned with customer needs and market demands.

Empathy is Key

At its core, customer discovery is about empathy - putting yourself in your customers' shoes to truly understand their needs, pain points, and desires. By following this comprehensive guide and maintaining a strong product mindset, you'll be well-equipped to create products that truly resonate with your target audience.

Remember, in the world of software product management, your success is directly tied to how well you understand and serve your customers. Happy discovering!

Created Date: July 10, 2024