EXPERIMENTING WITH REAL CUSTOMERS THROWS UP CRUCIAL DATA ABOUT THE DEMANDS OF STARTUP CUSTOMERS.

Treating a Startup venture as a grand experiment enables entrepreneurs to test their business plan assumptions and answer the following pertinent questions: should this product be built? Can a business be sustained on this set of products and services? What are the essential and ancillary features of a product?

The Lean Startup Model encourages entrepreneurs to view every step they take as an experiment aimed at validating or disproving certain assumptions and theories. This process draws on the true behaviours and desires of real customers. Validated Learning is backed by sound, unbiased empirical data.

Failure propels entrepreneurs through to learning.

The assumptions or theories make predictions about customer behaviour. The predictions are then tested through product and strategy experimentation to generate empirical data. This data will guide the Startup in discovering the best sustainable way of building a business around its vision.

By observing real customer behaviour and not asking hypothetical questions, a Startup generates accurate data about its customer demand.

What with experimentation, a Startup puts itself in a position to learn about customer perceptions of their product in view of a discounted pricing strategy or other marketing strategies.

Interacting with real customers often reveals certain crucial information unavailable from a conventional market research and survey.