Entrepreneurial Institute

Build What Matters: How Customer Discovery Shapes Better Products

In the fast-paced world of entrepreneurship, building a successful product isn't just about having a brilliant idea or cutting-edge technology. It's about understanding your customers deeply and creating solutions that address their real needs. This is where customer discovery comes into play—a critical phase that shapes better products and drives business success.

Customer discovery involves engaging directly with potential customers to understand their needs, challenges, and the problems they face. It's not about selling your idea but about listening and learning. As Steve Jobs famously said, “New ideas come from watching something, talking to people, experimenting, asking questions and getting out of the office!”

New ideas come from watching something, talking to people, experimenting, asking questions and getting out of the office!

Steve Jobs

Getting out of the building

One of the foundational principles of customer discovery is to "get out of the building." This means actively engaging with potential customers in their environment to capture non-verbal cues and genuine insights. While in-person interactions are ideal, video conferencing can be a second-best option.

A compelling case study illustrating the power of customer discovery is Airbnb. Initially, Airbnb struggled to gain traction. Founders Brian Chesky and Joe Gebbia decided to meet with their hosts and guests to understand their needs better. Through these conversations, they discovered that professional-quality photos of rental spaces significantly increased bookings. This insight led to Airbnb initially offering free professional photography services, which became a pivotal factor in their early growth.

Actions are more important than words

When conducting customer discovery, the goal is to gather backward-looking stories rather than forward-looking speculation. Understanding how customers have dealt with similar problems in the past provides a more accurate picture of their needs and behaviors. Open-ended questions are crucial in this process, allowing customers to share their experiences and insights freely.

Don't assume you understand the problem

Avoid the common pitfall of assuming you understand the problem. Instead, let the customers articulate their challenges and frustrations. This approach prevents leading the witness and ensures you gather authentic insights. It's also important to resist the urge to sell during these interviews. Focus on understanding the customer's world and the job they are trying to get done.

Never stop learning

Finally, customer discovery is an ongoing process. It's not just about validating your current assumptions but continuously learning and adapting as your business evolves. Embrace the feedback, even when it's challenging, as it provides valuable direction for your product and business strategy. As Jeff Bezos aptly put it, "We’re not competitor obsessed, we’re customer obsessed. We start with what the customer needs and we work backwards."

We’re not competitor obsessed, we’re customer obsessed. We start with what the customer needs and we work backwards.

Jeff Bezos

Tell me more

For further reading, Talking to Humans is a great, short book that delves deeper into the art of customer discovery. Additionally, a series of short Customer Discovery videos from our colleagues at UC Berkeley provides practical insights into conducting effective customer interviews. These resources offer valuable guidance for anyone looking to master the customer discovery process.

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