Monday, February 28, 2011

The only acceptable response to a feature request is: ‘Thank you for your feedback. I will take it under advisement and consider it for inclusion in a later version of the software.’

http://www.kalzumeus.com/2010/03/20/running-a-software-business-on-5-hours-a-week/

Quick tip when speaking to customers: “The most interesting people you will ever meet are the people who are most interested in you.”

The average sales rep spends about 47 seconds in talking about customers prior to talking about the solution.  That number should be increased, greatly.  On the plus side, because the industry is so comprehensively screwed up here, even minor improvements provide an opportunity to surprise and delight customers.  ”Goodness, the CEO of that company spent five whole minutes talking to me about how we go about our business!  They really care!

Key takeaway: The quality of your dialogue with customers is directly proportional to the quality of the customers you will acquire.  If you understand their needs better, you will close bigger deals with happier customers who consume less resources.
Customer faith in your product as a solution to their problem is directly proportional to how well they believe that you understand their problem.  This again counsels spending more time talking to them and asking perceptive questions, then repeating their own language right back at them.  If they call it a foo, you call it a foo, even if internally everyone knows it is “really” a bar and, after all, it implements IBarable in the source code.  Relatedly, you cannot tell your way into a dialogue with the customer, you can only ask your way in.
Customers have DNA: Drivers, Needs, and Aspirations.  You should be capturing your understanding of these as you talk to customers, or you aren’t learning what you need to learn to bring the customer and the firm to a mutually satisfactory relationship.
Some factors to consider
  • Customer needs
  • Timescale for implementation
  • Scalability
  • Integration with existing systems/processes
  • Affordability
  • Results
Customers have many priorities:
  • Ego (underrated by engineers in my opinion… even those who own iPhones because they’re worth owning iPhones)
  • Perceived gain
  • Sense of belonging (“Nobody ever got fired for…”)
  • Security
  • Ease of use
If you think of a funnel of concerns prior to sale, starting at the top:
  • The experiences customers have right now.
  • Their business case or project which may benefit from your solution.
  • The utility your solution can offer.  (Note to engineers: many of you stop inquiring here.  That is a mistake.)
  • Options they have competing with your solution.
  • What the company values in terms of outcomes, drivers, etc.
  • Resources they have to solve the problem (i.e. talk budget last, not first)

http://www.kalzumeus.com/page/2/

Why pay people so that they can buy objects suggesting social status when you can just award social status directly.

http://www.kalzumeus.com/page/2/

Brand is what people say about you after you have left the room.

http://www.kalzumeus.com/page/2/

Ideas that spread, win. - Patrick

http://www.kalzumeus.com/page/2/

Thursday, February 24, 2011

The business of software is now marketing (which includes design). - Seth Godin

What’s the business of software?

At its heart, you need to imagine (and then execute) a business that just happens to involve a piece of software, because it’s become clear that software alone isn’t the point. There isn’t a supply issue--it’s about demand. The business of software is now marketing (which includes design).

So, the questions I’d ask:
  • Who can I reach?
  • Is the product so remarkable that they will talk about my product with their peers?
  • Can I earn and maintain permission to continue the conversation?
  • Once they learn about the utility offered, will they pay for it?
When building a software business that uses the network effect, I’d ask:
  • Does the connection this enables create demonstrable value?
  • Is there an easy and obvious way for someone who benefits to recruit someone else to join in?
  • Is it open enough to be easy to use but closed enough to avoid becoming a zero-cost commodity?
What you’re looking for in a connected world is a piece of software that sits in the middle of a sphere, enabling the user to make valuable connections, to build utility in a way that they couldn’t without you. That’s worth paying for and not worth switching out of.

    http://sethgodin.typepad.com/seths_blog/2010/10/the-business-of-software.html

    Ultimately, the best test of any product is to go to your target market and pretend like it’s a real business. You’ll find out soon enough if it is or not. - Signal vs. Noise

    http://37signals.com/svn/posts/2781-ultimately-the-best-test-of-any-product

    The only thing that matters is getting to product/market fit. - Marc Andreessen

    http://pmarca-archive.posterous.com/the-pmarca-guide-to-startups-part-4-the-only 

    Product/market fit means being in a good market with a product that can satisfy that market. 
    My understanding: It was product fitting the market, not the other way round.