You must first complete Step 2: Selecting a Beachhead Market before viewing this Lesson

Step-3-Building-an-End-User-Profile-Persona-cyprus-cyprusinno 2

 

After finding your beachhead market, you need to get to know your customer in more detail. As Aulet (2013) points out, each customer consists of an end user as well as a decision-making unit:

 

  • End user: is the individual who uses your product/service
  • Decision making unit: is the individual who decides whether the customer will buy your product/service. The decision-making unit can consist of:
    • Champion: wants the customer to purchase the product
    • Primary Economic Buyer: person with authority who is spending the money
    • Influencer: people who can convince the buyer to change their mind

 

Even within your beachhead market, you can encounter a lot of different individuals. For example, if we go back to our example with the university – we don’t know who is the ideal end user, is it the secretary or the biology professor? Who makes the decision to buy our technology within the university? As these questions are still unanswered, we need to narrow down our end users who can provide us with the cash flow we need to survive. Therefore, it is crucial to interact with the customer as much as possible and collect valuable information. It is important to find out things like that 25-year-old biology professors are more likely to adopt your technology than 50+ year old biology professors. These findings are only possible through narrowing down your beachhead market even further.

 

The aim is to create a detailed and accurate description of your end users who have similar needs and wants. In order to build an accurate description of the end user, you can use customer segmentation, which looks at the following (StartupFlux, 2017):

 

  • Geographic
  • Demographic
    • B2C (Business to Consumer)
      • Age
      • Sex
      • Education
      • Income
      • Occupation
      • Race
      • Ethnicity
      • Etc.
  • B2B (Business to Business)
    • Industry
    • Business Lifecycle
    • Financial
    • Business Model
    • Value Chain
    • Etc.
  • Psychographics
    • Social Media presence
    • Engagement
    • Mobile/Desktop
    • Etc.
  • Behavioural
    • Usage
    • Likes
    • Interests
    • Etc.

 

A more detailed list can be found here: https://think.startupflux.com/customer-segmentation-models/

Because of the fact that even such a detailed customer segmentation can leave you with multiple candidates as end users, the best way to proceed is to choose one end user to be your persona. The persona is the individual who best represents your end user for the chosen beachhead market (Aulet, 2013).

 


Below is the suggested structure for creating an ideal persona:



 

Another aspect of researching your market is to conduct a SWOT analysis as it will shine a light on both internal as well as external aspects of your business. The SWOT analysis will be discussed in detail in module 8 of this course.

 

Recommended Readings:

 

 

For information on the persona, calculation of the market size for the beachhead market and more, please refer to the book Disciplined entrepreneurship: 24 steps to a successful startup by Bill Aulet - https://www.amazon.co.uk/Disciplined-Entrepreneurship-Steps-Successful-Startup/dp/1118692284/ref=sr_1_1?ie=UTF8&qid=1515464134&sr=8-1&keywords=Disciplined+entrepreneurship%3A+24+steps+to+a+successful+startup

 

 


→ Click the View the Lesson Quiz button below and successfully complete the quiz to advance to the next lesson...


 

References:

Aulet, B., (2013). Disciplined entrepreneurship: 24 steps to a successful startup. John Wiley & Sons.

Startupflux (2017). Customer Segmentation Models. Available at: https://think.startupflux.com/customer-segmentation-models/


 

Back to: Developing an Idea & Validating the Opportunity > Defining Your Target Market and Customer

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