Clear To Engage acceleration is supported by a set of tools that will help assessing the development advancements of your business and to determine, among other things, the switch between Blue Pill Player and Red Pill Engager status. The threshold between the two is given by the amount of lean validation about problem/solution fit that the startup is able to collect (check also the Players/Engagers page for more information).
Below you find more details about some of the tools you will be using during C2E acceleration.
Upon submitting to C2E calls, after a quick eligibility check, every participant startup receives a detailed outline of next steps and is provided access to C2E tools as well as references to 3rd party resources. You’ll also receive instructions on how to add files and information to your own C2E private profile, after the initial application. Feel free to start working on your own, and update your application with any additional results (or even documents you simply forgot to attach in the first place).
Compass/Genome Benchmarking Tools
Clear to Engage strongly encourages you to read this paragraph even in case you are not going to apply for any of the C2E calls.
This is especially true for Italian startups, which are all advised to complete the Compass/Genome survey as soon as possible. During the first half of 2015, in fact, Compass/Genome is collecting information about Italian Startups, provided by the founders through the online survey, as well as interviewing ecosystem players and actors (accelerators, investors, etc.) in order to include the Italian Ecosystem in the upcoming Startup Ecosystem Report 2015 (expected in May 2015).
During C2E acceleration, access to these benchmarking tools will help you and your advisors make data-driven decisions. Upon submitting to C2E calls you’ll receive a reminder to complete the survey. Anyway, before the mentoring starts you should get your hands on the benchmarking dashboard (click here to see an official Compass screenshot). A lot of that information will be crucial for C2E to determine where exactly your startup is positioned in terms of business performance and market resonance.
Especially for Red Pill Engagers, benchmarking information will be precious to determine, for example, if the engine of growth has been identified correctly, if the acquisition channels are worth the money invested in them, and so on. The sooner you have benchmark data, the better. If you applied to C2E calls and need help with completing the Compass survey, don’t hesitate to contact C2E team for support (you will receive your individual address for support requests soon after your C2E application).
Bear in mind that the two things are separate, therefore if you decide to complete the Compass survey as part of your participation to C2E calls, make sure to also submit your application through the official C2E application form. Again, there is no requirement to apply to C2E to complete the Compass survey.
For more information about the Ecosystem and Startup Reports, take a look at the box below, with some links to resources by Compass.
Read the Ecosystem Report (below you find a link to the 2012 edition) if you want to take a look at how the Italian Startup Ecosystem will be described in the 2015 edition. Remember to complete the Compass survey to participate to it (the sooner the better: startup data will have to be available for the report writers by March-April).
If you wish to understand how the benchmarking tools will be useful during C2E acceleration to assess your progress, read the Startup Genome Report, and more in particular, the report on Premature Scaling.
Clear to Engage has authored a spreadsheet reporting tool for the validation activities that you have already performed or will perform with the help of C2E. C2E Validation Report will be part of the investor package that you’ll make use of during the fundraising activities, and it will be an important element to track your progress and communicate with your advisors. All C2E startups will receive a copy of this template report, soon after their application, so that they will be able to fill it in, in case they already have validation data, and upload it to their own C2E private profile, until the deadline, before the evaluation starts. Thus, if you feel your startup is a Red Pill Engager, and want to make sure that it is evaluated as such, make sure you provide as much information as possible through the Validation Report and send it to C2E through the individual e-mail address you received upon applying to C2E.
C2E Validation Report template is not available to the public at the moment, and is used exclusively to work with C2E@2015 startups. The Validation Report template itself is a work in progress, and will be made available to the public after it will receive enough feedback and debugging.
Current version of the Validation Report template is 0.1b as of 22th Feb. 2015
If the version you received by e-mail after applying is older, please check the e-mail itself for information of where to get the latest version.
C2E Validation Report is based on the “build-measure-learn” principle and is organized in several sections, each corresponding to various lean experiments you might want to perform to validate your business vision. Below are some more information to help you better understand each of the possible experiments and MVPs. As the Validation Report template integrates more experiments, they will be added here as well with supporting instructions.
If you are a startup professional and would like to receive a copy of the template before it is public, to contribute to its structure and provide your feedback, please submit your business e-mail below and you’ll be contacted as soon as the template reaches a suitable level of development and stability (be sure to read and accept the privacy policy).
If you reached this page through the links provided in the C2E Validation Report, these are supporting instructions to help you fill in the “Problem Interview” section of the template.
Problem interviews are probably the most important and, at the same time, most overlooked and neglected tool to understand about your customers’s needs and problems.
First and foremost, problem interviews are exclusively about customer’s problem(s) and they must not include any reference or question about the solution you are developing or planning to develop. For this reason, you might have noticed that the “Problem Interview” section of the C2E Validation Report does not include an input box for your solution hypothesis, but only for customer segments and problems.
As with all other lean experiments, the focus is on learning and not selling. Additionally, for problem interviews you are not even going to gather any learning about your (future) solution, but only on everything that concerns with the current customer pains and how/where they look for solutions, if they currently make use of alternatives, and if their problem is strong enough to justify paying for a solution.
Unfortunately, asking direct questions to your customers will give you useless information.
Keep in mind an important fact: there is a huge difference between what customers say and what they do. For several psychological bias effects, people tend to try to appear smart or modern/cool when answering questions or they try not to pose themselves strongly against the interviewer point of view (or at least what they think the interviewer point of view is). As lean startup practitioners usually say, customers “don’t want to call your baby ugly” (the baby is your startup/product).
But you really need to know, at this point, if your “baby” is ugly to the eyes of your customers. Otherwise, you’ll end up understanding this the hard way, by loosing time and money on products no one wants to buy.
Therefore, to avoid bias effects from interviewees, you need to ask open ended questions and, first of all, let your customers do the talking. The more you talk, the more they will figure out what you want to hear and they will simply say that to you to avoid the risk of being “wrong” or disappointing you.
Open ended questions are those that do not imply a yes or no answer, and that do not lead the answer in any direction. Let’s look at an example.
Bad question
“How unsatisfied are you with current mobile payment systems?“
Good question
“Tell me about your experiences with mobile payments“
The first question suggests that there is something wrong with current mobile payment systems, and the interviewee might think that he/she would appear not smart enough if they claimed to be satisfied instead. There is a very high risk of collecting misleading answers, with corresponding wrong decision making for the business. Sometimes this negative effect is referred under the name “Observer bias“.
The example above also leads to another serious factor to take into account: the so-called “Confirmation Bias“. It is a natural tendency of the entrepreneur conducting the interview to try to collect proof supporting his/her own assumptions, rather than listening and learning instead.
For this reason, the “Problem Interview” section of C2E Validation Report asks you to fill in some of the strategies and specific key questions that you made use of to minimize the negative phenomena described above. This information are crucial to demonstrate the quality of your validation experiment, so please add as much as possible (you also have the option to extend the page with additional space if needed).
If you reached this page through the links provided in the C2E Validation Report, these are supporting instructions to help you fill in the “Solution Interview” section of the template.
Solution interviews are apparently similar to problem interviews and in fact most people tend to execute the two together. This practice, however, reduces the amount of learning you are able to achieve, especially regarding the validation of the customer problem.
The Validation Report has separate sections for the two kinds of interview because it is paramount to conduct separate experiments for them. It is perfectly reasonable to conduct both experiments with identical assumptions and identical hypothesis, but they should be planned and executed separately.
Aim of solution interviews is to test the validity of your solution’s hypothesis and assumptions. Again, the focus is learning, not selling. The distinctive trait of solution interviews is to actually put your solution (your product or service) in front of a potential customer. It might look like a sales pitch, but it’s not.
The “Solution Interview” page of the Validation report template expects you to fill it in with data regarding the measured collection of “currency”. This term identifies any kind of objective indication of interest coming from your customers. If you’re not familiar with the concept of currency, let’s look at an example.
Bad currency
“80% of people interviewed said they liked the product and would buy it“
“Almost all of the people interviewed confirmed that the product price fits their pockets“
Good currency
“60% of people interviewed left their e-mail to be informed about the upcoming product launch“
“Half of the people interviewed gave us referrals to other people potentially interested in our product“
“As a result of the interviews, we closed a signed agreement with one customer to be involved as a beta tester“
As with problem interviews, there is a big difference between what customers say and do. Read about the famous paradox of the “yellow walkman”, a typical example of customers’ interest expressed about a proposed product (the yellow walkman itself) and a conflicting behaviour arising immediately after (preferring the traditional black walkman as the free gift for participants). Due to this paradox between customer’s words and actions, you should make sure that your proposal is able to trigger some form of tangible commitment from customers.
With regard to how you will present your solution to customers, the Validation Report includes some possible options, leaving you with the possibility to add and describe your own personal method. There’s no requirement to have a fully functional product/prototype to conduct solution interview experiments. You could easily make solution validation tests with some of the cheapest and quickest alternatives included in the Validation Report template, such as mockups, paper sketches or even basic marketing collaterals, describing your product’s features and benefits.
If you reached this page through the links provided in the C2E Validation Report, these are supporting instructions to help you fill in the “Customer Survey” section of the template.
Problem and solution interviews are exceptional tools to learn about customers’ behavior and expectations. However they have an implicit flaw: they are inevitably based on limited numbers, therefore they are not able to provide you with statistically relevant data.
Online surveys are instead perfect to reach wider audiences and be able, for instance, to determine quantitative data about frequency and dimensions of certain crucial business paramenters, such as potential dimension of a customer segment, percentage of individuals with a segment that have certain traits that make them unreachable by your value proposition, and so forth.
The typical survey is delivered online, and is composed of a set of questions requesting the customer input in the form of yes/no, multiple answers, priority lists, side by side comparisons, matrices, etc. The typical online survey should contain no more that 10-12 questions, to reduce the effort required on the customer’s side and maximize the number of respondents.
Due to the fact that online surveys collection is an unsupervised process, surveys are not the right tool to begin your validation with. In fact, they are not able to promote significant learning, especially when you are still validating your critical assumptions.
For this reason, the Validation Report includes the “Customer Survey” page after the problem and solution interviews. The rationale is that you should first validate the core set of problem, customer segment and solution hypothesis and then, with that knowledge in mind, design an online survey to collect further quantitative details on the underlying, or related, assumptions.
Here’s a few great online services that you could use to design and deliver your customer surveys and analyze results:
If you reached this page through the links provided in the C2E Validation Report, these are supporting instructions to help you fill in the “Video Experience Prototype” section of the template.
Detailed instructions on how to fill in the “Video Experience Prototype” page of the Validation Report will be available soon. Sorry for the inconvenience.
In the meanwhile, you could take a look at a notable example of an MVP realized in the form of a video describing a future product. This is from the initial Dropbox campaign, back in 2008.