How to make something your customer would pay for?

We have all heard the stories about the challenges entrepreneurs face when building a successful business. Only one in every five new business enthusiasts is successful. Many young starting entrepreneurs are discouraged by this fact, so well-known and much repeated in business schools, while the reasons of such high probability of failure (as well as the ways to avoid it) often remain mysterious.

However, in most cases the reason is painfully obvious: you just offered something your customer didn’t want. It is that simple, no mystery there. So, the actual question is – how to come up with something that your customer would really want (and be ready to pay for)?

Here are a few tips:

#1 Know your customer

The typical response to the question: “Who is your customer?” is “Everyone”. Yet it is impossible to make something that would be equally attractive for every single person. There will always be this one group of people who will appreciate your product or service the most and therefore will be the first ones to buy. Figure out the profiles of those early adopters. Make sure to understand their motives, problems and broader life context that you are trying to fit in.

Tool: Customer Persona Canvas

#2 Empathize with your customers

It is understandable that it is very easy to fall in love with your own idea and want to try to make everyone else love it as well. However, itis your customers you need to create value for and what they think trumps your opinion. The ability to empathize and adjust your product or service to cater for the needs of customers is key to creating a valuable product.

Tool: Empathy Map

#3 Define and communicate the value proposition

Knowing and understanding your customer unlocks the awareness of what it is about your product or service that creates value for them. As soon as you spot the most valuable functional and emotional components – be sure to communicate them loud and clear. This will attract customers’ attention as well as differentiate you from competitors.

Tool: Value Proposition Canvas