Product Validation #1 - Customer Interviews

In the last post, we discussed why it is important to validate a product. This is crucial before spending $10 million on a new idea for Facebook.

But what exactly is product validation? And how is it done?

In simple terms, product validation means checking if your idea can become a real business. This involves making sure it solves a real problem that customers care about and are willing to pay for. If you can find a real problem that people will pay to solve, you are on your way to "product-market fit."

Getting product validation right can save you time, money, and effort. It can also prevent the pain of building something that nobody actually values.

So, how do you validate your product idea? There are numerous techniques available, each with varying levels of required effort, signal strength, and quality of insights generated. It's best to use a combination of these techniques rather than relying on just one.

Let’s give an example. The first technique we’ll want to discuss is conducting Customer Interviews. It's easy to understand but hard to do. You find a few potential customers. Then, you reach out and interview them. This helps you see if your idea solves a problem for them or if the problem really exists.

Often, people try to make others happy and avoid confrontation. In an interview, the people you interview may want to please you. They might say your idea is great and that they will pay for it when it is ready.

Alas, surprising - until they actually pay you, it’s not real. Just like election surveys, it’s BS.

So how can you actually get good insights from customer interviews?

1. Look for signals. Are they excited and “light up” when you mention their problem.

2. Ask the right questions - try to learn what is their biggest pain point. If it’s not the one you thought about, you might want to pivot.

3. When talking to customers, you can ask about the ways they are solving their pain points. If they talk about competitors, you can explore why those competitors are or aren't providing the solutions customers want.

4. Ask them to pay now and observe their reaction. Afterward, you can tell them that the product or service is not available yet. You wanted to see how interested and committed they are.

   
   

This list is far from being comprehensive, but can give you a good start :)

Overall, this is just the tip of the iceberg. We will discuss more techniques that go well with Customer Interviews. This will help you understand the pain points and solutions better.