Asking Good Questions: The Key to Understanding Customer Needs

SDS 009: Clarifying Customer Research

Hey! thank you for reading issue 009 of Startup Definition Sunday (SDS). 

SDS is the newsletter for founders, bringing you clarity one actionable tip at a time.

SDS arrives every two weeks (you guessed it) on Sundays.

In every issue you can expect: 

• 1 Definition of startup jargon

• 1 actionable tip you can implement right away

• 1 article on Africa tech that you should read

• 1 gift for founders

Let's dive in:

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It's always such a pleasure to share each issue with you! If you missed last week's issue, you can check it out here.

Before we dive into today's issue, Marge and I are starting something we think could be useful for founders - bi-weekly office hours for founders interested in practicing their 5-minute pitch, beginning April 6th.

Sign up to join us every two weeks. 

Now, let's get into another underutilized tool for founders: customer research.

At the end of this issue, you will walk away with actionable tips to unlock the power of understanding your customers.

What is customer research?

Customer Research: a vital activity for any startup that wants to understand their target market, validate their value proposition, & improve their product or service. 

Why is customer research necessary?

The best founders think of customer research as a detective game. The mission is to learn about your customers - discover their needs, improve your product or service, and keep them happy. Ready to investigate? It all starts with asking the right questions. 

But, how do you know you are asking the right questions? 

The right questions:

• Establish rapport & trust with customers

• Warm up customers with easy or general questions first before more sensitive or specific questions later

• End on a positive note

5 tips for asking good questions

1. Keep it simple: Use easy words so everyone understands. Try this: Instead of asking "How do you find our agricultural startup's new irrigation system's effectiveness?" ask "Is our new irrigation system helping you save water and grow more crops?" See the difference?

2. Be open-ended: Give your customers the freedom to express themselves. For example, instead of asking "Do you enjoy using our solar-powered device charger?" ask "What do you like or dislike about our solar-powered device charger?" Now, your customers can share their honest thoughts.

3. Ask for specific examples: Encourage customers to tell their stories. This helps you learn their needs and find things to improve. Try asking "Can you tell me about a time when our mobile health clinic really helped you or your family?" You'll get valuable insights.

4. Be empathetic: Show customers you care about their opinions and feelings. Listen, answer, and thank them for their feedback. If a customer shares a bad experience, say "I'm sorry to hear that you had a difficult time with our service. We appreciate your feedback and will work to improve the experience for you and others." They'll appreciate your empathy.

5. Analyze & act on feedback: After collecting information, study it and use it to make your product or service better. Look for patterns in the feedback, focus on important issues, and make a plan to fix them. For instance, if many customers say your e-commerce platform is slow, work with your team to make it faster and easier to use.

Remember, asking good questions is the key to understanding your customers and making your startup successful in an emerging market. By using simple, open-ended, and empathetic questions, you'll gain valuable insights to better serve your customers' needs.

In the next issue, I will be asking some founders for their best practical tips for customer research and sharing with you. If you want to share your tips, find out how to get in touch with me at the end of this issue. 

If you have learned something valuable today, consider joining SDS so you don't miss future editions. 

If you only read one thing this week, read this...

DFS Labs' Chernay Johnson wrote a great article on the limits of retail digitalisation. 

Here's why you should read it: Africa's $1.4T retail market is an enormous opportunity. Many startups have been founded in the last 5 - 7 years to tackle some aspect of this market. That road is strewn with difficulty and Chernay explains why. 

What I don't agree with: the argument for potential cost savings of B2B restock platforms in the FMCG / food sectors, at scale.

Founder's Corner

Let's get real for a second: raising a round in 2023 is beginning to sound like going outside in mid-2020 - everyone is advising you against it. Unfortunately, unlike missing weekly drinks with your friends, you can't just pause on the fundraising.

The team at Africa The Big Deal have been curating a database of investors that have done deals in Africa since 2019.

It costs a fraction what you will pay for Crunchbase or Pitchbook BUT the team has offered a 10% discount for subscribers of SDS. Grab it here (and tell a friend!) to help you target investors in your sweet spot. 

Thank you for reading to the end of issue 009.

Until we meet again in two weeks, here's how we can stay in touch:

• 🐦 Find me on Twitter

• 💬 Hit me up on Linkedin

• 💌 Email (hit reply)

• 🚀 Sponsor SDS (Reply to this email)

Let's chat again in two weeks,

Jasiel

P.S I am revamping my newsletters referral program after some helpful feedback from readers. I need your help on this:

What makes you excited to refer a newsletter to your friends & family?