The Customer Development Model, developed by Steve Blank, is a key component of the Lean Startup methodology. It emphasizes understanding customer problems and needs before developing a full-scale product. This iterative, four-step framework guides businesses through the process of customer discovery, validation, creation, and company building. It is designed to help startups avoid building products that customers do not want and thus reduces the market risks and increases the likelihood of startup success.
Customer Discovery: Identify and understand potential customers' problems and needs. | Customer Validation: Test the product concept with early adopters to ensure market demand. | Customer Creation: Develop and execute a marketing plan to drive customer demand and sales. | Company Building: Transition from a startup to a functional company with scalable operations.
Engage with real potential customers early and often | Be prepared to pivot based on customer feedback | Validate assumptions with minimal viable products (MVPs) rather than full features
Reduces the risk of product-market mismatch | Increases efficiency by focusing on customer feedback early in development | Facilitates a lean approach to product development
Time-consuming in the early stages | Requires substantial customer interaction which may be challenging | Can lead to pivoting away from original vision based on customer feedback
When launching a new product | When entering a new market
In a well-established market with well-defined customer preferences | When the product development is strictly technology-driven with little input from end-users