How do you pivot your business model based on lean feedback?

1 What is a pivot?

A pivot is a strategic change in one or more aspects of your business model, such as your value proposition, target market, revenue model, or distribution channel. A pivot is not a failure, but a learning opportunity that helps you discover a better fit between your product and your customers. A pivot can be triggered by various types of feedback, such as customer interviews, surveys, experiments, or metrics.

2 How to identify the need for a pivot?

The need for a pivot can arise from various situations, such as your product not solving a real or important problem for customers, not reaching or attracting the intended customers, not generating enough revenue or profit, or facing too much competition or regulation in the market. To identify the need for a pivot, you should collect and analyze feedback from customers and the market. This can be done using tools and methods such as the lean canvas, the build-measure-learn loop, and the validation board, which are all designed to help summarize business model assumptions, test MVPs, and track experiments.

3 How to choose the right pivot?

Choosing the right pivot depends on your goals, your feedback, and your resources. To evaluate different types of pivots, you need to consider the problem you are trying to solve for your customers, the value proposition you are offering, who your target customers are and how you reach them, how you generate revenue and profit, and what metrics measure your success. These pivots include a zoom-in pivot, which focuses on a specific feature or segment of your product or market, a zoom-out pivot, which expands your product or market scope, a customer segment pivot, which changes your target customer group or persona, a customer need pivot, which changes the problem you are solving or the benefit you are providing, a platform pivot, which changes the way you deliver your product or service, a business architecture pivot, which changes the way you generate revenue or profit, a value capture pivot, which changes the way you capture value from your customers, an engine of growth pivot, which changes the way you acquire, retain, and monetize your customers, a channel pivot, which changes the way you distribute or market your product or service, and a technology pivot, which changes the technology or method you use to create or deliver your product or service.