BZ Podcast Review 05: Run to Revenue & Race to Profit with Superior Customer Experience
Key Takeaways
1. Work with your customer and create a product/service together. Treat them as your business partner. In this way, you can identify the gap in their business and create a product or service which directly addresses those needs.
2. Run to Revenue and Race to Profit. In order to do this, (1) you need to have people willing to buy your product and serve. (2) Make sure they have a great experience so they will become repeat customers and your advocates for referrals (3) Manage your cashflow and burn rate.
For example, my company raised tens of millions dollars and had a great run almost to Series D. However due to cashflow management and poor sustainable profits, the company went under one day before the signing of series D.
3. Make it easy for your customer to justify their decision. We human-being like to justify our decisions, either making a purchase or switch a career. Normally they have a budget reserved for certain part of their life. What your product/service need to do is help them justify spending it on you instead of other things. Thus it is not only how good you are but also what is better to spend money on this to replace certain part of their spending on other things.
For example, you have a date night with your partner every month. However every time you go out you need to hire some babysitter to take care of your children. In the meantime, your kids have extra-curricular classes which also cost you a bit.
As a business owner offering extra curriculum classes, in order to get you as a customer, I could offer a 3-hour classes at night for your kids at night. Then you can go out and enjoy your date night.
Even my business could be a little expensive. Because I am saving your babysitter expense, you can totally justify it. Here you go, I made the sale.
4. 3-legged stool of success
Know your best bet it and go all-in on it. For example, if your best bet is playing video games on twitch, don’t be a mediocre one, go all-in one it and post videos everyday and change your games based on customer feedback.
Have some protection
Revenue is a lagging indicator. It just shows you did a good job before. In order to sustain it, you need to find certain proactive indicator to base your decisions on. Customer survey/feedback is a great way to do that.
Credited to: JLD Entrepreneur on Fire
