A customer problem is the problem, requirement, preference, or desired outcome a customer wants addressed. Start with the situation the user is trying to solve—not with a guess about which product they should buy. section 17.3.1
For a startup, customer problems are the starting point for deciding whom to serve and how to create value. The useful question is: what are users trying to solve now and over the next three years? section 17.3 section 17.3.1
Investigate a customer problem before committing to a target segment:
- Identify the problems users are solving rather than asking only what products they need. section 17.3.1
- Group users who share needs, usage patterns, buying criteria, or channels. section 17.3.1
- Compare how needs differ across segments and whether differentiation matters to customers. section 17.3.1
- Check substitutes, technical trends, competition, market size, growth, and profit potential. section 17.3.1
- Choose a segment where work for one customer can translate to many similar customers. section 17.3
Segmentation is more than putting customers into labels. A useful segmentation model reflects how customers define themselves, their needs, how they use an offering, and how they buy. It helps determine product-market fit and a defensible niche. section 17.3
Turn the research into a data-driven customer segmentation chart. A simple spreadsheet can place segments across the top and measured attributes down the side, including segment size, growth, discontinuities, and technology trends. section 17.3.1
Customer problems continue to matter after targeting. Sales discovery calls, demos, and conversations reveal what each prospect is trying to achieve; that insight lets sales tailor the value proposition and address pain points and objections. section 25.1
A concise investor-pitch prompt
State the customer problem separately from the product or service. Then explain how each offering solves that problem and what value proposition it provides. Define the target market and customer segments as related, but distinct, answers. section 6.3
The practical moral: do not lead with features. Define the customer’s real problem, find a segment with similar needs, and keep testing whether the value you offer is meaningfully different. section 17.3 section 17.3.1
