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9 Comments

Beware of Uncommitted Users

Something I learned from building CoffeePass...

Beware of users that are not committed to what you are building.

  1. When you have a new business idea, you are really motivated to sell your business and get your first customers. The big problem is that you might take customers at any cost.

  2. This is a mistake! There are so many people out there that just can’t say no and will instead just say “maybe,” thus basically keeping you hanging onto a thread of hope that they will eventually take you up on your offer.

  3. I had a coffee shop that wasn’t that interested in CoffeePass, but since I just kept selling to them and convincing them, they eventually said, “Ok, we can try it out in a few months.” I had them on board…..right???!

  4. Nope! I probably met in person with this shop 3 times trying to get them on the platform because there seemed to be a glimmer of hope! However, there was no commitment on their end. They never ended up using it.

  5. Beware of uncommitted users because they can just be a huge waste of your time. And even worse, they could potentially even lead you astray!

  6. My Advice:
    Get users early on that actually want the product that you’re building. You shouldn’t be trying to force it down their throat.

on November 23, 2019
  1. 2

    I would agree.

    Ideally your early users should have this problem and maybe workaround solutions that they've used to address it. They would be most receptive to someone who comes with something that does it better and faster.

    Also remember that there's a certain type of coffee shop that this would be attractive to - go for them based on characteristics you can identify. Ignore the others as you don't need to make a product for everyone, indeed I believe that's a mistake early on. Focus on a few who you can make amazingly happy vs lots who will only be somewhat happy.

    1. 1

      Definitely. I like it!

  2. 2

    IDK how your area is like but in Melbourne it seemed like almost overnight the CBD is filled with ~5 services that offer order a head by app. (used to be some before that started and might have failed here and there, but suddenly crazy surge...)
    One of them puts another little tablet like device in the store front that shows the order lines..
    Like most of the places that added these services added some or all of them.
    They are marketed with promotion discounts and free credits... very startup heavy will burn money to gain customers...

    (started marketing this as a coffee preorder and free coffees to join and than lunch pre-orders "skip the line"...)

    I almost wonder if that niche has the story of one offer no-one wants, and if you have a few, everyone joins? :shrug:
    Maybe competition made them put offers out that one can't refuse while taking investments to cover acquisitions...
    Seems to me a bit like the taxi wars (uber, lift, didi, taxify etc..), close to the food delivery wars..

    Almost leaves a place for an aggregator or maybe there is one which is why all of them have multiple providers :D

    1. 1

      Oh yeah you have Skip where you are. We took a look at what they were doing in the early days.

    2. 1

      Definitely agree with your thoughts. It's a really tough space. and like you said, starting to go to startups that have raised lots of money and are just burning it to get lots of shops on. I think the US market is probably behind compared to some others but it starting to surge now.

      A lot more that I have learned about this space that I could comment on. Decided a couple months ago to get out of it. We are working with a buyer to hopefully sell the company now.

  3. 1

    Are you sure? Some non-committed users can still bring you value. Do they use the product at all? I believe all users have value. It is up to you as the business owner to extract that value. Example: Can a non-committed user bring you FREE customer leads? As a very targeted LEAD has a $$ value.

  4. 1

    Hi Noah --

    Sorry, but I'm going to disagree with this advice. In fact, this uncommitted customer is great! This is an amazing opportunity for you to learn.

    To start with:

    • sales can take multiple touches to close.
    • your customers will probably not be excited about your product to start with
    • different customers need different sales pitches

    Instead of saying this is an "uncommitted customer", you have to realize that a business owner has several different things going on at any one time. SMB are difficult to target for this reason; there is a bottle-neck at decision making, and implementing new ideas is a headache for them.

    The outcomes they want are:

    • increase sales,
    • improve customer experience (usually only if it leads to more sales, but some cases regardless),
    • improve employee experience (for better/more advanced businesses),
    • save time/management headaches (intermediate business / when they realize they're wasting a lot of time)

    In addition to this, they don't have a lot of spare capital to spend on implementing new things.
    Every new thing they add is a new headache, and more training that is required.

    How are you solving those issues for them? How are you creating benefits related to the outcomes that they want? And how does this fit in against every other option they have of how they can be spending their time?

    --

    So you need to look at your value proposition and compare it to all other value propositions and things that the business owner is juggling. How do you make it easy for them to implement and move forward with? How do you make it attractive enough for them to take the next step?

    Do you have testimonials? How are you helping their bottom line? What's your sales pitch?

    To be honest, if you emailed me, I would look at your landing page and probably 'x' out pretty quickly. It sounds like added headache for me and there's no talk about the actual benefits your customers have gotten. Have they seen an increase of sales? Was it difficult for them to implement? How does it integrate with my PoS? How do I train my employees? What if someone orders a coffee but there are already people in line?

    It's clear that you don't understand my needs and I don't want to take the time to explain them to you. (not to be discouraging -- and I see that you're getting out of this business -- but I think this level of honesty is necessary and can help you as you move forward)

    Look at the skip page (never heard of them before now, just opened their site for the first time) and look at how they're dealing with all of these questions right off the bat:

    https://www.skip.com.au/venues/melbourne

    It could be improved further, but it's a pretty good start.

    ---

    For reference, my family owns a chain of grocery stores that i was very involved with before getting into tech, so I'm very familiar with the needs of SMB's, and was pitched on similar things super often. Most were a waste of my time, and I knew that right away. I would get dozens of cold emails a week. How you can improve your results for SMB marketing:

    [a] respecting the user's time
    [b] anticipating the questions they would have off the bat
    [c] focusing on the benefits
    [d] including testimonials
    [e] including case studies from relevant businesses, again focused on the outcomes/benefits they want
    [f] being transparent about pricing

    1. 2

      I agree with a lot of your evaluation on where we could be better and make our value proposition more clear. But selling to a shop that isn't fit for our product isn't going to help me figure that out and I think is beside the point of what I'm trying to make.

      Especially when you are a bootstrapper (have little resources and money), you need to focus your time on what counts and really matters. Spending it on a shop that was never going to buy no matter how well I sold are value propositions isn't a good use of time. I believe you have to find your target customers and go for them.

      I could have learned from this shop in one meeting and then moved on. Instead I wasted lots of time trying to get them on the platform. I did all the work for them trying to make it as easy as possible. I should have took the hint that it wasn't a good fit.

      I guess I didn't mention that this shop didn't have much demand and order ahead wouldn't have really helped their situation. So I didn't share all the context.

      1. 1

        You're right -- there is a danger to selling to a shop that might not be a target customer.

        How many shops are target customers in that case? Is that enough to be sustainable?

        I might ask instead, "does the current product make sense in our market? How do we make our product work for a larger portion of stores?"