We often find there is a lack of time, traffic and resources when it comes to validating our target market. However, there are ways to speed up the process while also gathering all the necessary information you need.
Here are 4 growth hacks you should use to validate your customer.
1. Define your Funnel Early on (but don’t be afraid to pivot)
Some say the holy grail of growth hacking is the Pirate Funnel (AAARRR):
With each stage of the funnel, it’s important to have an accompanying metric. This is so you can quantifiably measure the success of each stage, and then adapt these metrics throughout the customer validation process.
Having a clearly defined funnel allows you to evaluate what lead generating method would work best for your company and can make it easier to forecast earnings based on existing stats.
Often we see two common mistakes being made when defining a company pirate funnel:
The Inflexibles: those who define early on but become attached to their original plan and fail to adapt to their customer’s needs. Remember your first plan is your first best guess, it needs to evolve into a better plan as you learn more.
The Perfectionists: those who find it hard come up with clear definitions for each stage because they’re searching for the perfect answer and end up in limbo. These people need to ‘just do’. If you head off in roughly the right direction, you’re closer to the end then if you stand still.
As your company grows, or marketing strategies change, you may need to tweak your funnel to in a way that is more efficient and effective while continuing to capture and nurture leads.
2. Don’t Rely Too Heavily on Your Early Adopters
Early adopters can be very influential to your target market, they make up around 13.5% of your adopters (according to Everett M. Rogers).
After the buzz of your new product fades, you often won’t hear much from the early adopters who tend to get bored easily and will likely move onto the next shiny new thing.
It may be tempting to pivot solely based on the feedback from early adopters, but that can be a costly mistake. It’s essential to remember that the majority of your customers that will stick with you, will come after the early adopters.
3. Talk to your Customers Directly
It’s easy to assume you know exactly what your customers want and need, but it’s important to have solid data to validate your assumptions.
The success of your company ultimately depends on whether you have a product that solves a problem for others, and they’re willing to pay for this. It is important to ensure the problem is a real problem and not just something you assume. Consulting with your customers will provide you with a wealth of information that you can use to improve your product and company as a whole.Understanding the market you’re targeting will allow you to be more realistic with ensuring that the market you serve is large enough and consists of people who are interested in buying your product.Click To Tweet
4. Manage and Automate your Data
Customer validation is important for making better business decisions about customer needs and this will make it easier to create a seamless customer journey.
A better understanding of the importance of the safe use of customer data collected will help you make more informed decisions.
It is important to educate stakeholders about data as it allows you to set consistent policies where information can be utilised wherever the data resides.
Manual data entry is one of the most unproductive things to do as it wastes time and money. Business systems should be built on a solid foundation with an effective system that can easily adapt to changes later on. Use tools that can automate the organisation and distribution of your data, in addition to performing and maintaining back-ups.
These are 4 tips to start growth hacking your customer validation process effectively. Which ones do you plan to implement?
Written by Trevor Townsend, CEO Startupbootcamp
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