When your product manager is researching the market, she has a choice between using hypotheticals and actuals . When interviewing a prospective customer, a product manager who uses hypotheticals asks such questions as: Would you be willing to buy a product that does x, y, and z? If I were to offer you a product that does x, y, and z, how much would you be willing to pay for it? How often would you use a product that does x, y, and z? In contrast, a product manager who uses actuals: Asks what the prospective customer does currently instead of using the product. Determines how much the prospective customer spends to accomplish her goals without using the product. Puts actual product or demos into the prospective customer's hands and determines whether she uses it. Both hypotheticals and actuals are helpful. Hypotheticals are notoriously unreliable , however. To the extent possible, a product manager should favor actuals when researching the market.
The “Science” of Lean Startup Lean startup practitioners embrace the scientific method, seeking the "truth" about what business model and strategy will lead to product success. We do so by: Formulating hypotheses Crafting and running experiments to test them Learning from the experiments Iteratively feeding our learnings back into revised hypotheses Sounds pretty scientific, at least in spirit, doesn't it? Yet this process actually neglects a key ingredient in the scientists' mode of operation. To identify what’s missing, let’s examine “customer development”. Customer Development Steve Blank is one of the pioneers of the lean startup movement. He introduced into the lean startup lexicon the term “customer development”. Customer development consists of sessions and interactions with customers to test hypotheses. For example, a product manager might interview a prospect, asking if she agrees with the product manager’s hypotheses abo