Lean Start-up Framework is based on a lifecycle every successful new company/product goes through.
Being more specific, each phase of this lifecycle is based on the incremental percentage of growth given by every additional customer at each stage.
In general, the bigger the revenues get and the smaller the incremental percentage of growth given by every additional customer gets.
Therefore, each lifecycle stage of the company/product requires:
- Specific targets
- Specific techniques
Lean Start-up Framework is based on a 5 stages lifecycle
Stage1 – Searching for Problem/Solution Fit: the focus is on
- Defining Target Customer Segments and formulating some hypothesis on the problems they are facing
- Validating the hypothesis on the problems the Target Segments are facing
- Formulating a hypothesis on the Solution for the validated problems
- Validating the hypothesis on the Solution
- Iterating the process for as long as it takes to reach a match between the Problems and the Solution
Output: Minimum Viable Product (MVP) that is the prototype/mock-up of the Solution approved by our customers
Stage 2 – Searching for Product/Market Fit: the focus is on building a product in collaboration with the customers and, in the process, to build a community.
The basis for doing this is the Minimum Viable Product.
Once a company sells the MVP, it finds the Early Adopters. These are the main actors of this stage since they are the customers in my Target Segment that feel the problem the most.
The company must
- Formulate some hypothesis on the functionalities to be added to the MVP.
- Validating the additional functionalities.
- Iterating the process for as long as it takes to reach a match between the Product and the Market
Output: Product/Market Fit
Stage 3 – Searching for Channel/Product Fit (Optimizing the Funnel): the focus is on customer acquisition and growth.
The basis for doing this is the Product/Market Fit that is when the company
- found a market where it can operate with a product/service that can satisfy a target
- learned how to sell the product/service
- is ready to go hunting for a mass market
This is the field of Growth Hacking.
GH consists of a fast-paced testing process on marketing and product channels to find the best way to:
- scale a business
- reach the Viral Loop
A Viral Loop is the result of positive customer experience while interacting with a company’s Value Proposition. More precisely, if a customer is happy with a product or service, he/she might be so excited that he/she wants to share with others his/her experience as well as news and info about the company’s products or services.
A Viral Loop creates quick and cost-effective Brand Recognition.
Growth Hacking is based on mapping each phase of the company’s relationships with the customers through the A.A.A.R.R.R. Funnel also known as Pirate Funnel.
The funnel consists of 6 phases, each one managed through a metric that is called The Only Metric That Matters:
- Awareness that is managed with the Number of Impressions
- Acquisition that is managed with Lead Generation metrics (i.e. the Number of Unique Visitors)
- Activation that is managed with the Conversion Rate (i.e. first listening to a song on Spotify)
- Retention that is managed with the Retention Rate
- Revenue that is managed with Net Income
- Referral that is managed with Net Promoter Score (NPS)
Once the Funnel is mapped, it is time to activate the Bullseye Framework as well known as the Growth Hacking Cycle.
The BullseyeFramework is an approach based on improving one metric of the funnel at a time to maximize the available budget and it is based on:
- Brainstorming (to generate ideas based on 20 possible Traction Channels)
- Prioritizing(using Impact-Confidence-Ease methodology)
- Testing best ideas
- Implementing the 3-5 ideas with best ROIs
- Analyzing the implemented ideas
- Systemizing the idea with the best ROI
Output: Channel/Product Fit
Stage 4 – Pouring on the Resources for Growth: the focus is on maximizing the revenues out of the funnel while keeping on
- optimizing it with A/B Testing
- activating more Growth Hacking Cycles to generate new ideas
Output: Company’s Maturity
Stage 5 – Growing through Acquisitions and International Expansions
Stage 1 – Searching for Problem/Solution Fit
If you want to be a black belt of Lean Startup then you have to read some more detailed content about these stages.
But before you continue, as Master Miyagi used to say, “we make sacred pact”.
“I promise teach Lean Startup to you, you promise learn”.
If you agree, you can start with Stage 1 – Searching for Problem/Solution Fit!
Business Strategy | Product Marketing | Executive Master eCommerce Management | Business Innovation Master | MSc
I am driven by my personal growth and of people/contexts that surround me.
I followed a professional path in Valentino Fashion Group and Luxottica during which, thanks to the ability to understand different businesses and interests, I was able to succeed in Operations, Merchandising and Retail.
These organizations have exploited my ability to mediate and translate needs/constraints into practice, assigning me to Project Management roles.
Luxottica relied on my ability to analyze, to anticipate things and to imagine/implement solutions by appointing me in Supply Chain Management department and assigning me to the Product Management of IoT solutions for Anti-counterfeiting and Retail digitalization.
During this professional path, I also developed my leadership by managing teams to build Processes, Organizations, Systems and Governance Tools.