How do you pivot your start-up's strategy in response to customer feedback?

Here is an exercise to give you clarity on the problem you solve. It’s called a PIC chart. Problem, impact, cause. Write down one problem, the impact that problem has on the business, and what causes that problem. Once you do that for all of the problems your buyer has, write down how they are trying to solve each problem now. If your solution isn’t 10x better than their current solution, move to the next problem.

Pivoting based on customer feedback was a game changer in my journey, transforming how we brought innovations to the market. Key takeaways: 1. Build an iterative process by design: we designed projects as a set of sprints from the start. We tested and learned as we built the proposition. 2. Foster a true customer-centric culture. We put customer’s feedback at the center of the decision making and deliberately limited internal incremental input. 3. Be strategic about collecting feedback. We tested in different ways (qual & quant), went where customers or gatekeepers are (in bars for the HoReCa channel) and asked WHY many times. We also asked extreme users - those our proposition targeted and those we believed it wasn’t designed for.

Create space to incorporate customer and prospect tweaks in your development process. Have an established criteria for what constitutes,a tweak vs an observation and some type of dipstick check periodically to ensure the adjustment met the desired objective.

Any company's product (service or good) should be a direct response to their customers' expressing a need. It's great if you have market experience and understand the problem, but your customers can give you a unique and scalable perspective. If your product is not fulfilling your customer's needs, either partially or wholly, you might want to take one of the most important steps: ask them how you can improve. Market research from your customers will provide you with the input you need and make your customers feel wanted and appreciated. Turn this into a case study that they can share publicly, and you have now turned a problem into a solution: you know what your customers want, will pay for, and they can assist in your marketing/promo!

To pivot your startup's strategy based on customer feedback, first define the problem by analyzing feedback and identifying recurring themes or pain points. Next, assess the feasibility and potential impact of alternative strategies or solutions. Consider factors such as market demand, competition, and resource availability. Develop and test hypotheses through rapid prototyping or MVP iterations. Gather feedback from customers to validate the effectiveness of the pivot and iterate as necessary. Communicate transparently with stakeholders about the rationale behind the pivot and the expected outcomes.

Pivoting isn't contingent on a solution "not working." In fact, it might be working well, but not necessarily well enough for you and/or investors. Or it is working well, but you find from customer feedback that it could work even better if you changed/removed/added something. But in every case, any change should be based on customer behavior. How and why are they using your product/service now? What aspects are they not using? Why aren't they using it? Customer discovery is not limited to pre-launch startups. Good examples: P&G had high ratings on their powdered detergent, but upon observing customers found none used their hands to open the boxes. Burb'n found most people used the app for pictures and pivoted to become Instagram

Analyze the Situation: Examine the context surrounding the problem. Consider factors such as when the problem started, its frequency or severity, and any potential causes or contributing factors. Break It Down: If the problem is complex, break it down into smaller, manageable components. This can help you focus on addressing individual aspects of the problem. Ask Questions: Use the "Five Whys" technique to delve deeper into the problem's root causes. Ask "why" multiple times to uncover underlying issues. For example, if the problem is declining sales, ask why sales are declining, and then ask why again for each subsequent answer.

The best way to precisely understand what you are doing wrong is to talk to your potential customers. It's better to do this not through questionnaires or cold emails, as the conversion rate to results and response will be very low in such cases, and important points might be missed. The most effective approach is to speak directly with your potential clients, and if possible, via video or in person. Ideally, if you have several target groups, segment those with whom you will conduct interviews, and conduct at least 15 interviews for each group before deciding to confirm the hypothesis that the product needs to be changed and move forward. However, your hypothesis must have clear, measurable indicators of its success or failure.

As a founder, when approaching a pivot, it's critical to first pause and define the problem. Why isn't the current solution hitting the mark with our customers? To get to the heart of the issue, we dive into customer feedback, be it through surveys or analytics. It's akin to piecing together a complex puzzle, looking for patterns and discrepancies between what we believed our customers needed and what they've told us they need. Only by juxtaposing this feedback against our initial business hypotheses can we spot the misalignments – the gaps in our strategy – and pinpoint the opportunities to adjust our course effectively. This process is not just about change; it's a precise recalibration towards delivering true value.

Once the problem is defined, delve into exploring potential pivots. Evaluate various options depending on the aspect of strategy you wish to alter - be it customer segment, value proposition, revenue model, distribution channel, technology, or branding. Combining multiple pivots might formulate a comprehensive new strategy. Brainstorm alternative approaches using insights from customer feedback, market research, and competitive analysis. Assess the feasibility, viability, and impact on resources, team, and stakeholders for each option. A well-informed exploration sets the stage for a strategic pivot with the greatest potential for success.

Consider Constraints: Be aware of any limitations or constraints that could impact your options. These may include budget constraints, resource availability, or time constraints. Generate Alternatives: If you feel stuck with a limited set of options, challenge yourself to think of alternative solutions. Sometimes, creative thinking can uncover innovative alternatives. Seek Input from Others: Involve relevant stakeholders, team members, or experts in the evaluation process. Different perspectives can provide valuable insights and help you make more informed choices. Test Assumptions: Review and validate any assumptions underlying your options. Ensure that your assumptions are based on accurate information and sound reasoning.

Pivoting is a reality in startups when customer feedback contrasts with the current strategy. The next step is to explore options for pivoting by brainstorming and assessing ideas against customer insights, competitive landscape, and market trends. The chosen pivot should be sustainable and drive growth.

Treat yourself as a scientist and your startup and funding as a lab environment where you need to demonstrate a business hypothesis. Use written and unwritten feedback (mostly the latter) from your customers to validate your thesis. Don't become attached to ideas that you like. You'll sometimes be surprised about what your customers need, which probably is not what you wanted to build in the first place.

I’ll take a bit of a different angle on testing your hypothesis. Create a list of 1000 target customers. Cold call them all. If you cannot book a meeting with at least 10% of the people you speak to, it may be time to consider something else. Product market fit is important, but so is message marketing fit.

As innovation facilitator of 100+ projects, I advise you to EXPERIMENT BY PRETOTYPING … YOU FAKE IT BEFORE YOU MAKE IT 🤗✅. Pretotyping is a technique for testing hypotheses and validating ideas quickly and cheap, founded by Savoia. It involves creating a simplified version of a product or service to collect user feedback and understand market demand. It’s a non-working prototype. Pretotyping reduces the risk of failure by assessing market response early in the development process. A famous pretotyping story is how Tesla ‘faked’ their first electrical car, the Roadster, using a so-called ‘glider’ of a Lotus Elise to confront their potential customers with a ‘real car’, leading to 250+ launching customers who paid $ 5000,- in advance.

It's important to conduct a deep research while balancing it with the necessity to move quickly. This includes researching the new target market, analyzing the competition, and considering time, resource, and team capacity limits. One tool I’d recommend that I found to be really helpful, is the Design Sprint from Google Ventures. It's a process that involves building and testing a prototype in just five days, to rapidly progress from problem to tested solution. This is important because at the beginning a startup might be more willing to change, but with time this willingness decreases. Personally, I found it to be a valuable tool during my startup’s pivot. It allowed us to test our concept in just one week and iterate on it three times.

Validating your pivot hypothesis is much like backing up a promising theory with solid experiments. Before fully implementing change, it’s clever to test the waters. Creating a minimum viable product or a prototype gives us a low-risk environment to check if our new direction appeals to our customers. To measure success, we'll need clear, relevant metrics—things like customer retention or revenue growth. Collecting data helps us compare actual performance against our hoped-for outcomes. And gathering feedback from both our customers and mentors is priceless; it gives us diverse perspectives. The iterative process of testing, feedback, and refinement keeps our pivot grounded in reality and aligned with our audience's needs.

Validating your hypothesis is critical before executing a pivot. Utilize tools like MVPs, prototypes, landing pages, or beta versions to run experiments. Clearly define success metrics—customer acquisition, retention, engagement, satisfaction, or revenue—and collect data during experiments. Compare results with initial expectations and goals. Actively seek feedback from customers, partners, mentors, or advisors, integrating their insights into decision-making. Rigorous validation ensures that your pivot is based on real-world evidence, increasing the likelihood of success and minimizing risks associated with assumptions.

It's crucial for startups to establish a strong support system that includes all stakeholders; employees, investors, and board members. In my personal experience, we focused on being clear on the future we aim to create and how we'll reach it with defined steps. We recognized that exploring a new area might require additional expertise that we did not yet possess. To address this, we communicated transparently with your board about our points of strengths and the areas where we needed support. By getting as much support as possible in the new direction, a startup can benefit from external and team motivation, and most importantly build confidence in its ability to pull off the pivot.

Communication is key. Lack of information leads to higher dissatisfaction. People don't like change. So communicating with (not "to") customers will provide information for both your customers and you. Make it a discussion, rather than an announcement. And do it before you make any changes. That will make changes (pivots) easier to accept, because customers will feel and see their input being valued and implemented.

Craft a Compelling Narrative: Use storytelling to convey your vision in a memorable and engaging way. Share stories that illustrate the purpose and passion behind your vision. Visualize Your Vision: Create visual aids, such as charts, diagrams, or presentations, to help people visualize your vision. Visual representations can make complex ideas more accessible. Use Simple and Clear Language: Avoid jargon and complex language. Use simple, concise, and easy-to-understand language to convey your message.

When charting a new course prompted by customer feedback, it's vital to convey the vision clearly to the team and customers. It's about painting the big picture—sharing the 'why' behind the pivot, detailing what we're pivoting towards, and explaining the process. It’s crucial to highlight how the pivot benefits everyone and address concerns that may arise. By involving everyone in the journey, their feedback becomes part of the fabric of our new strategy, fostering a collective commitment. As we navigate this shift, updating our branding and communication materials to mirror our refreshed approach isn't just housekeeping—it's an essential step in reinforcing our startup’s new direction.

Effectively communicating your vision is crucial during a strategy pivot. Clearly articulate the rationale behind the pivot, explaining the why, what, and how. Emphasize the benefits and opportunities while addressing concerns and risks. Involve your team and customers in the process, seeking their feedback and suggestions. Update branding, marketing, and sales materials to align with the new strategy. Secure buy-in and support by fostering open communication, ensuring everyone understands and aligns with the vision. This proactive approach minimizes resistance, fosters collaboration, and enhances the overall success of the strategic pivot.

Belief. That's the starting point. Belief tempered with data and reality check. Then hard work and perseverance. Then let Karma do it's magic. Does this work always? No. Remember PAL vs NTSC.... the unknown variable which raises its head at the most unexpected time 😁... Be honest. Be realistic. Work hard. Leave the rest in the hands of destiny.

Once your hypothesis is validated and your vision communicated, it's time to execute your plan and implement the pivot. Establish realistic milestones and deadlines, assigning clear roles and responsibilities to your team. Monitor progress and performance, adjusting the plan as needed. Celebrate successes and learn from failures, fostering a culture of innovation and experimentation within your startup. This dynamic approach ensures adaptability and continuous improvement, essential elements for successfully navigating the challenges of executing a strategic pivot.

If you followed the advice above to discuss pivots with your customers, they will help you execute, if you enable and encourage them to do so. Give them a beta trial and/or recognize their contribution as "co-developers" or "co-creators". Encourage them to share their honest opinions. Give them a coupon or code to share with friends for free or discounted product/service. Again, communication is key and getting your customers to help with the communication is valuable.

Executing a pivot is a journey with clearly marked milestones, and it begins with setting attainable goals within structured timelines. Each team member plays a role, with responsibilities tailored to leverage their strengths. Progress must be diligently tracked, ensuring we're on the path to our desired destination and ready to course-correct when necessary. Celebrating each success fuels morale, while learning from setbacks serves as a compass for future actions. The pivot is more than a strategy shift; it embeds a culture of innovation and adaptability in the startup’s DNA, so the company remains resilient and responsive to the ever-evolving market needs.

Pivoting isn’t a sign-off but a sign-up for continuous improvement—a relentless commitment to adaptability in a world where change is the only constant. It's akin to steering a boat; you regularly check the compass (market trends and customer needs), adjust the sails (strategy), and account for the tides (feedback). We conduct this symphony by meticulously reviewing results, playing to our strengths, and fortifying our weak spots. Pivoting doesn't always end with the first shift; it's potentially an ongoing series of adjustments. Embracing change not as a necessary evil, but as a catalyst for growth, sets the stage for enduring relevance and success. Always iterate, always improve—that's the startup spirit.

Pivoting isn't easy, and there will be challenges that are important for growth. It makes a huge difference what your mindset is when facing them. There's the obvious way of looking at them as an obstacle your startup is facing. However, the other approach is looking at it as a challenge for the team to overcome; an opportunity for growth. To achieve this growth, it’s vital to be prepared and have a plan in place. One of things we did to overcome challenges was bringing in experts from different fields to help us fine-tune our strategy and ensure that our team had the skills they needed to succeed. We also remained flexible and open to feedback, making adjustments as necessary to ensure that our new direction aligned with market needs.

How do you pivot your start-up's strategy in response to customer feedback? Frequently 😜 Depends on the stage but at pre seed at least, your strategy should be crazy fluid. With that being said, customers should inform your strategy not drive it. 🛞 👇 Nuance 👇 Each customer is incredibly biased to their use case and their time horizon You see the bigger picture and can synthesize feedback at large and take into account the types of feedback you get from your various types of customers. 💡 And based on prevailing patterns, YOU, should drive the strategy. With customer feedback as the input but not the output

It is all about your implementation strategy. During launching a new product, I had everything in place from a planning and strategic perspective. Things didn't work! I started to listen to customers and the team. Figured out the gaps and refined the strategy. Then things didn't work again :D Again, I listened to customers and the team. Then pivot and refined the strategy. Finally, it was booming. 3 skills you must have during the pivoting process: 1- Through your ego in the trashcan. 2 - Listen ... Listen and listen to customers and your team. 3 - Trial & error or as I like to call it learning by doing. Magic will happen :)

In our pivot journey, we also need to remember that every startup's path is unique. An anecdote from an entrepreneur friend comes to mind—they pivoted after realizing their tech was more valuable for an entirely different industry than initially intended. It wasn't customer feedback alone that sparked their shift; it was also an eye-opening market analysis. So, while customer feedback is seminal, complement it with broader market insights. Be ready, too, for the human side of pivoting—the emotional resilience needed, the conversations with stakeholders, and ensuring the team's morale stays high amidst change. These nuances, beyond the tactical steps, are equally critical in navigating a successful pivot.

I'm a big fan of being and staying clear about one's wider purpose of starting and running a business! Sure, you can pivot in response to customer feedback, changing markets, and new technologies all the time – but are you still doing what you set out to do in the first place? Does the new direction somehow resonate with your values, motivations, and identity as a founder and team? I suggest to have a clear understanding of this in place and keep the conversation up to help guide your pivoting decisions 🚀