lean-startup, customer-development, mvpWe are in situation of starting up IoT company. We focused on industrial area for now. We have created a product measures efficiency of machine and operator,reports stops and reasons.And giving other detailed information for manufacturing companies.
Because of my partner’s network we were able to talk directly to work with one of our target customer. I developed product based on his feedback and tested device at his shopfloor.
After completeding mvp we started to visit some customers to get feedback about our product. So far we visited 5 customer + 1 machine producer.
Customer1: he liked the idea but he is not the owner he said he needs to ask his father he said his father is old style man may not want to pay money for this kind of things.And they are in progress of moving shopfloor and he was thinking to implement this kind of solution in new location
Customer2: He said that they need this kind of solutions because they keep such information in excell and they cannot reach from everywhere. But they were also moving to new location. he said they will consider this in new location
Customer3: He seemed intrested he said he knows this kind of solutions he said send us price offer. But at this meeting we didn’t act much confident somehow he is not intrested anymore.
Producer: This one produces our target machines.They said we can work together and integrate to their machines.But they gave us future schedule to meet and consider again.
Customer4: This one we went last week he also said its nice but he will hire some manager to implement this kind of technologies.So we must wait for him.
Customer5: This was also said nice idea nice system. He asked price and told its seems little bit expensive ( our compatitors as 15k just for license which we don’t) i explained him. He said maybe we can start with 3 machines ( if he gets the bid ) he didn’t ask for current machines.
So my question is should i consider those feedbacks as my product is ok for them ? if so why nobody buys damn thing ? :) Our website is not ready and we didn’t start any online campaign yet.
Or they see our product is nice to have not must have
Please hop over to this related question before reading what follows:
https://startups.stackexchange.com/questions/12516/process-of-obtaining-leads/12539#12539
Back? Great.
After completeding mvp we started to visit some customers to get feedback about our product. So far we visited 5 customer + 1 machine producer.
One nitpick if I may. You don’t have an MVP. The V in there stands for Viable. And the test to know if it’s viable is, well, that it’s selling. So you only have an MP: Minimum Product. Your mission as a startup is to turn it into an MVP.
Going through your prospects one by one:
Customer1: he liked the idea but he is not the owner he said he needs to ask his father he said his father is old style man may not want to pay money for this kind of things.And they are in progress of moving shopfloor and he was thinking to implement this kind of solution in new location
No decision, no timeline, no budget. Probably no pain either. Not qualified.
Customer2: He said that they need this kind of solutions because they keep such information in excell and they cannot reach from everywhere. But they were also moving to new location. he said they will consider this in new location
Pain, presumably decision, no timeline yet. Nurture if you’re guessing there will be a budget.
Customer3: He seemed intrested he said he knows this kind of solutions he said send us price offer. But at this meeting we didn’t act much confident somehow he is not interested anymore.
Likely not enough pain or no timeline, but follow up regardless: “Hi, we met a short while ago to discuss X. I was wondering if you’ve an update for me on when you think things will move forward.” A deal isn’t lost until a prospect says no. Don’t forget to politely ask why when they say no.
Producer: This one produces our target machines.They said we can work together and integrate to their machines. But they gave us future schedule to meet and consider again.
Follow up to ask when if you don’t already know precisely when. (FYI you’re not doing your sales job properly if you don’t know who should touch base, when, and with what at the end of a meeting.)
Customer4: This one we went last week he also said its nice but he will hire some manager to implement this kind of technologies.So we must wait for him.
Probably pain, but no decision or timeline yet. Likewise, follow up to ask when if you don’t already know.
Customer5: This was also said nice idea nice system. He asked price and told its seems little bit expensive ( our compatitors ask 15k just for license which we don’t) i explained him. He said maybe we can start with 3 machines ( if he gets the bid ) he didn’t ask for current machines.
Not enough info to guess. FYI one of the better ways to answer a price objection is not to become defensive, but rather to act somewhat surprised and flip the objection on its head: “Oh really?! I don’t get that a lot. Can you give me some details on what you’re comparing us with?” Price objections can stem from all sorts of reasons.
Naturally, there’s the occasional competitor that’s offering something better or cheaper or more in line with what they need. Take notes when that occurs, as it may lead you to revisit what you’re offering and how you’re selling it. (This is how you get the V bit in MVP.)
Other times, there apparently is a want (though not necessarily a need) but no sensible budget to put in front. Scratch beneath the surface and you’ll periodically find that it’s because the prospect doesn’t understand the extent of their own pain or how you’ll be addressing it (or not) or how you’ll make their life easier on top (or not). Politely spell things out, including when you’re a bad fit. (Better no deal than an unhappy, pain-in-the-rear client.)
Our website is not ready.
At the very least put one online. Even a single page that lays out what you’re offering exactly helps tremendously.
Or they see our product is nice to have not must have
Don’t lose hope yet. You did things right so far, in that you built the product with a real user instead of guessing requirements, and you’ve been meeting new prospects since. You’ll eventually figure out indicators that this or that type of prospect is more likely to buy and why, etc. Interact with enough prospects and you’ll get there eventually - if there actually is a genuine market, of course.
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