How to use Customer Problem Stack Ranking to Validate Startup Ideas.
Customer Problem Stack Ranking (CPSR) is a powerful technique for validating product ideas and finding product-market fit. This data-driven approach helps entrepreneurs understand the relative importance of their solution compared to other problems their target customers face. CPSR involves creating a survey asking customers about the most frustrating aspects of a specific activity, turning your idea into a problem statement, and brainstorming related peripheral problem statements.
By sending the survey to a specific customer segment and analyzing the results, you can quickly determine the priority of your value proposition. The author emphasizes the importance of avoiding biased responses by framing questions around problems rather than directly asking about your idea. OpinionX, a free online tool developed by the author, allows you to create and manage CPSR surveys, providing valuable insights to help you build products that address real customer pain points.
80% of product and features are rarely or never used. Why? Because they’re building solutions for problems customers don’t care enough about.
I spent over a year on 100+ customer discovery interviews only to follow the wrong user need. I’ve also spent 5+ years as a Techstars Community Leader and Global Facilitator helping hundreds of early stage entrepreneurs from around the world to validate their ideas and build first-concept products. If there is one thing I’ve learned, it’s that validation is hard.
I’ve taken my experience and built a tool that helps you validate ideas, find product-market fit and build solutions that customers love. It uses a new technique called Customer Problem Stack Ranking — named by Twitter-thread wizard and Stripe product genuis Shreyas Doshi.
To explain how Customer Problem Stack Ranking works, I’m going to take a startup idea that I’ve heard at countless hackathons; an app that makes it easier for a group booking their holiday to split the cost of accommodation and activities. We can call this hypothetical app Splitzies. Ok, lets jump in.
What is Customer Problem Stack Ranking?
Customer Problem Stack Ranking (CPSR) tells you how important your idea is compared to the other problems your target customers experience. It’s a simple data-driven approach to understanding whether your idea solves a burning pain point 🔥 or just a mild inconvenience 🙄
Step 1: Write Your Question
Customer Problem Stack Ranking is a type of survey so it needs a question, which usually goes along the lines of “What is the most frustrating aspect about ____ ?”. Your CPSR question should be broad enough that it allows your participants to explore all the problems associated with an activity rather than just the specific problem that you’re trying to solve.
For our imaginary app Splitzies, our ‘activity of focus’ is booking a group holiday so our question is: What is the most frustrating part of booking a group holiday?
Step 2: Turn Your Idea Into A Problem Statement
Asking target customers to rate your idea is a bad idea. As Rob Fitzpatrick’s book The Mom Test explains, if you ask people about your idea they will just tell you it’s great so that they don’t hurt your feelings. Instead, we need to turn our idea statement into a problem statement so that we can compare it to other problems that customers face in our ‘activity of focus’.
For Splitzies, our problem statement could be: “Dividing the cost of a hotel booking is frustrating and complicated when planning a group holiday.” You can create multiple problem statements to explore the different pain points your idea might solve and the different words your target customers might use to talk about the ‘activity of focus’.
If you’re not convinced about the need to use problem statements, here’s a short video from a serial entrepreneur. If you’re struggling to write your own, here’s a quick how-to video on problem statements.
Step 3: Create Peripheral Problem Statements
Brainstorm problem statements that fall under the same ‘activity of focus’ but aren’t related to your idea. These can be informed by a handful of interviews using open-ended questions or by reading some “pain points” related blog posts/forums. Don’t worry if you feel like you’ve missed some peripheral problems. Stack Ranking tools like OpinionX let participants add new problem statements to cover areas you miss.
Lets have a go at writing some peripheral problem statements for Splitzies:
- It’s difficult to plan activities when I haven’t organised a transport method like car rental or public transport.
- It’s hard to find out how expensive a destination is for general things like food and transport.
- Agreeing on dates that suit everyone is a pain!
- Some destinations are very different depending on time of year but good information on seasonality is hard to come across.
- Keeping a list of potential Airbnbs and hotels turns into a giant messy spreadsheet.
Step 4: Send Your Stack Rank To Target Customers
Send your stack rank survey link to target customers. Pick one specific segment rather than a generic demographic to avoid noisy data. For example, if I send my Splitzies CPSR to both young parents planning a family holiday and student backpackers, they’re going to have very different priority problems and our data will get all messed up.
If you haven’t got a pre-release waitlist, hit people’s DMs on online communities, forums and social media. We joined a few Slack communities for Product Managers and got +25% response rate on a couple hundred messages for a Customer Problem Stack Rank we did on our own startup (this outreach only took a couple of hours one evening).
Step 5: Iterate!
You start to see priorities emerge very quickly once votes start rolling in. As participants add their own problem statements, you’ll also learn about new pain points you hadn’t known about. Use these learnings to inform new sample problems and continue pushing your link out to participants.
Step 6: Results
Sort all the problems by highest or lowest importance to stack rank your statements. In one click, you’ll know how important your value proposition is compared to the other problems your target customers face.
When we did a Customer Problem Stack Rank for OpinionX, the value proposition we had spent 7 months building through customer discovery research came in dead last. Dead. Fucking. Last. We learned more in 2 hours using CPSR than we did in 100+ interviews. CPSR helped us realised the problem we were interested in was really important to our target customers, but they were using a completely different vocabularly to us.
We took the top 6 most important problems from our CPSR and rewrote our entire landing page and onboarding experience.
Step 7: Go.
The best time to carry out a Customer Problem Stack Rank was yesterday. Whether you’ve got a killer idea for a startup or you’re trying to align your existing product with problems that your customers actually care about, Customer Problem Stack Ranking is a versatile and flexible solution that’s ready to help.
You can create a Customer Problem Stack Rank for free on our platform OpinionX. My team and I can jump on a call with you for free to help you get set up properly — request a call for free here.
Let me know what you think or if you have any startup validation/customer discovery horror stories ✌️
Daniel Kyne is the Co-Founder and CEO of OpinionX, a free online tool for Customer Problem Stack Ranking that helps product builders to validate their ideas and find product-market fit. Daniel is a Techstars Global Facilitator, a Global Shaper at the World Economic Forum, and a former Digital & Innovation Lead at Unilever UK.