Customers
Do You Know Who You're Building For?
First Users vs. Ideal Users
There is an important distinction between your first users and your ideal users:
- First users — could be a friend from college, a neighbour, your grandma. Anyone willing to try your product early.
- Ideal users — who your product ultimately solves the problem for, and who is willing to use it the most or pay you the most money.
Finding Your Ideal Customer
A simple trick to identify early potential ideal customers:
- Segment your users into cohorts based on an engagement metric (time on site, rides taken, workouts registered, etc.)
- Focus on the top 10% of engaged users
- Ask yourself:
- What do these users look like?
- What are their occupations?
- Where are they located?
- Why are they engaging with my product?
- How much time are they spending on the platform?
- Use this information to build a blueprint for your ideal customer
Example: A small business that needs help with web design but cannot justify hiring a full-time software engineer. This is the ideal customer blueprint for a marketplace of freelancers.
Only Onboard Customers Who Fit
Winning founders understand their customers deeply. Superhuman is a great example of a company that takes this seriously.
CEO Rahul Vohra only onboards email "power users" because of the product's relatively high price point (~$360/year for an email client). His reasoning:
- If a customer is not the right fit, they will likely have a bad experience
- They will churn quickly
- The entire cost of acquiring that customer is wasted
Superhuman actually rejects potential customers who are not a good fit. Instead, Rahul spends time only on customers he knows will love and use the product. This is a disciplined application of ICP (Ideal Customer Profile) thinking.