Pivoting your startup means changing direction when your current plan isn't working.
Here's what you need to know:
- What is pivoting? A major shift in your startup's strategy, like changing your business model or target market.
- Why it matters: 14% of startups fail because they ignore customer feedback.
- When to pivot: Look for signs like falling sales, unhappy customers, or stalled growth.
- How to pivot:
- Study feedback and market info
- Set clear goals
- Make a step-by-step plan
- Update your value offer, target market, or product
- Shift resources to support the new direction
- Communicate changes to everyone
- Monitor results and keep improving
StepActionExample1Listen to customersInstagram focused on photo-sharing after user feedback2Act quickly but thoughtfullySlack pivoted from gaming to workplace chat in 6 months3Keep measuring resultsNetflix tracked user adoption when switching to streaming
Remember: Pivoting isn't failure. It's a smart move to align your business with what customers actually want.
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Getting customer feedback
Want to know what your users really think? Here's how to get the scoop:
Types of feedback
There are two main flavours:
- Quantitative: Numbers and trends
- Qualitative: Opinions and experiences
You need both. Numbers show what's happening, stories tell you why.
How to get feedback
Try these methods:
- Surveys: Quick and easy, but keep 'em short
- Customer chats: Deep dive for rich insights
- Social media: See what people are saying about you
- User testing: Watch people use your product
- Support interactions: Learn from real problems
Mix it up: Use surveys for the big picture, then chat with users to dig deeper.
Making sense of it all
Got feedback? Here's what to do:
- Group: Cluster similar comments
- Prioritise: Focus on big issues
- Analyse: Spot patterns and surprises
- Act: Make a plan and DO something
Remember, feedback is useless if you don't act on it. As Dharmesh Shah from Hubspot says:
"Feedback is the breakfast of champions."
So, dig in and start improving!
Knowing when to pivot
Pivoting isn't failure. It's smart business when things aren't working. But how do you know it's time? Here are some key signs:
Signs you might need to pivot
- Falling sales: Numbers keep dropping? Red flag.
- Unhappy customers: Long-time users leaving? Warning sign.
- Stalled growth: Hit a plateau? Time for a change.
- One-hit wonder: Only one part of your product working? Focus on that.
- Market silence: Target audience not responding? Your offer might miss the mark.
Comparing your business to customer needs
To spot gaps between your offer and customer wants:
- Review feedback: Look for patterns in comments and complaints.
- Analyze usage data: What features do people use most? What do they ignore?
- Check support tickets: Common issues reveal where you're falling short.
- Survey customers: Ask directly about their needs and how well you're meeting them.
Looking at market trends
Keep an eye on:
- Competitor moves: Are others outperforming you? How?
- Industry shifts: New tech or regulations can change everything.
- Economic changes: These affect customer spending and priorities.
Trend TypeWhat to WatchWhy It MattersCompetitorNew features, pricing changesShows where the market is headingIndustryEmerging technologies, regulationsCan create new opportunities or threatsEconomicConsumer spending patterns, recession indicatorsAffects customer behavior and budgets
Pivoting isn't just about fixing problems. It's also about grabbing new opportunities. Take Netflix. They switched from DVD rentals to streaming in 2007. They saw where the market was going and made a bold move. It paid off BIG TIME.
"If you're not getting results... you might realize that it's time to pivot your efforts and change your strategies." - Smith.ai
Stay alert. Listen to your customers. Be ready to adapt. Don't wait until it's too late—watch for these signs and be prepared to change when needed.
Getting ready to pivot
Before changing your startup's direction, you need a plan. Here's how:
Study feedback and market info
Look at customer feedback and industry trends. This helps you make smart choices.
- Check support tickets, social media, and surveys for patterns
- See which features people use most and least
- Note what competitors are doing well or poorly
Set pivot goals
Decide what you want to achieve. Be specific and measurable.
Goal TypeExampleUser Growth50% more active users in 6 monthsRevenueDouble monthly recurring revenue in 1 yearProductLaunch 3 new features from top user requests
Make a pivot plan
Create a step-by-step guide. Include:
- Timeline: Set clear deadlines for each phase. Instagram's pivot from Burbn to a photo-sharing app took 8 weeks in 2010.
- Resource allocation: Decide on people and money needed.
- Communication strategy: Plan how to tell your team, investors, and customers.
- Testing approach: Figure out how to test your new direction before fully committing.
"Pivoting your startup isn't easy. It's going to take a lot of work." - Prateek Saxena, Director & Co-Founder
How to pivot your startup
Pivoting your startup based on customer feedback isn't easy. But it can be the difference between success and failure. Here's how to do it:
Update your value offer
Change what you're selling to match what customers actually want.
Take Slack, for example. It started as a video game called Glitch. But users loved the chat feature. So they pivoted to focus on team communication. Now? Slack's a leading workplace messaging platform.
Find a new target market
Sometimes you need to sell to different people. PayPal's a great example:
Original MarketNew MarketResultSecurity softwareOnline payment processingMajor player in digital payments
Change your product or service
Listen to what customers need and update your features. Instagram nailed this:
- Started as Burbn, a check-in app
- Users loved sharing photos
- Stripped everything else away
- Became a top social media platform
Update your business model
How you make money might need to change too. Look at Netflix:
- Old model: DVD rental by mail
- New model: Subscription-based streaming
- Result: Transformed entertainment
Shift your resources
Move your money, people, and tech to support your new direction. BillGuard's journey shows this in action:
- Started as a B2C security product
- Pivoted to B2B, selling to banks
- Pivoted back to B2C with money-saving features
Each pivot meant shifting staff and resources. It's not easy, but it's often necessary.
Putting the pivot into action
Here's how to turn your pivot plan into reality:
Make a pivot schedule
Create a timeline with key dates and goals. This keeps everyone on track.
When Slack pivoted from gaming to communication, they used a 6-month plan:
MonthGoal1-2New messaging features3-4Beta testing5Soft launch6Public launch
Tell everyone about the changes
Keep employees, investors, and customers informed. When Instagram pivoted to photo-sharing, they:
- Held a company meeting
- Emailed early users
- Posted updates online
Handle the change process
Ensure a smooth switch. This might mean:
- Training employees
- Supporting customers
- Checking in with team members
Yaron Samid, BillGuard founder, shared:
"Our B2B to B2C pivot meant letting go of team members. Being open about challenges helped us maintain trust and build a multi-million dollar company."
Checking if your pivot worked
After launching your pivot, it's crucial to measure its impact. Here's how:
Pick your metrics
Choose clear indicators of success. Some common ones:
MetricWhat it measuresUser growthNew sign-ups or active usersRevenueIncome changesCustomer satisfactionNPS or feedback scoresEngagementProduct usage time or feature adoption
Monitor customer reactions
Keep tabs on how users respond:
- Run surveys for direct feedback
- Check social media mentions
- Track support tickets about new features
Assess financial impact
Look at how the pivot affects your bottom line:
- Compare pre and post-pivot revenue
- Analyze customer acquisition costs
- Track changes in customer lifetime value
A Willbur Labs survey found 75% of founders reported success after pivoting. But success varies for each startup.
Take Slack's pivot from gaming to communication:
- They tracked user adoption rates
- Monitored daily active users
- Measured time spent in the app
These metrics helped them gauge their new direction's effectiveness.
"The Product Hunt launch exceeded our wildest expectations and kickstarted our growth in ways we hadn't anticipated." - Akshay Kothari, CPO of Notion
But Notion's growth wasn't instant. It took months to see the full impact of their pivot and launch.
Remember: Give your pivot time to show results.
Dealing with pivot problems
Pivoting a startup isn't easy. Here's how to tackle common issues:
Handle pushback
When people resist changes:
- Use data to explain why
- Show how it helps them
- Address concerns openly
A tech startup shifted to B2B markets. They shared market research with employees to show the bigger opportunity.
Work with limited resources
To stretch what you have:
- Cut unnecessary costs
- Focus resources on key areas
- Test ideas cheaply
A food delivery startup became a cloud kitchen. They let chefs create new menus, using existing talent while keeping costs low.
Keep the team motivated
To stay focused on new goals:
- Celebrate small wins
- Communicate clearly
- Get team input
A fintech company moved from services to products. They kept their customer-first culture by involving service teams in product development.
ChallengeSolutionCustomer pushbackShow benefits, address concernsLimited fundsCut costs, refocus resourcesTeam uncertaintyCelebrate progress, communicate
Pivots often fail when done too late or without planning. Investor Fred Wilson says:
"If you've failed, accept it, announce it, and deal with it. Shut the business down, give back the cash, and rip up the cap table. Then do whatever you want to do next."
Know when to pivot and when to quit.
To avoid common mistakes:
- Re-do customer discovery
- Adjust your team for the new direction
- Give yourself enough time to pivot fully
Improving your pivot
After pivoting, you need to keep refining your new direction. Here's how:
Get feedback on new changes
Keep asking customers what they think. It helps you spot issues and improve your pivot.
Take Doola's founder Arjun Mahadevan. He talked to lots of customers and found out international founders wanted to expand to the U.S. but didn't know the rules. This insight led to a successful pivot that helped Doola grow.
Make small improvements
Use data to make small changes. Don't wait for big updates. Make tweaks as you go.
Look at Slack. It started as part of a game called Glitch. The founders noticed people loved the messaging feature. So they made Slack a separate app, focusing just on messaging. This small change? BIG success.
Stay flexible
Be ready to adjust quickly to new market challenges and opportunities.
Instagram's story shows why flexibility matters:
Instagram's PivotDetailsOriginal ideaBurbn, a check-in appUser behaviorPeople mostly shared photosPivot actionFocused only on photo-sharingResultBecame a top social media platform
Pivoting isn't a one-time thing. It's an ongoing process of listening, learning, and adjusting.
"Encourage the founders to conduct 'exit' interviews with customers that churn. What insights can we extract from these hard lessons?" - Elizabeth Yin, Investor at Hustle Fund
Elizabeth Yin's advice? Learn from customers who leave. Their feedback can help you keep improving your pivot.
Don't be afraid to make changes. A Willbur Labs study found 55% of founders had to pivot to avoid failure. While less than half felt good about pivoting at first, 75% said it worked out well.
Keep listening to your customers, use data for small improvements, and stay ready to change. This approach will help your pivot succeed and grow your startup.
Conclusion
Pivoting a startup based on customer feedback is crucial for business success. It's about listening, learning, and adapting to meet real market needs.
Here's what we've learned:
- Listen to your customers
Customer feedback is gold. It shows you what works, what doesn't, and where opportunities lie.
CompanyOriginal IdeaPivotResultInstagramBurbn (location check-in app)Photo-sharing focusAcquired by FacebookSlackGlitch (online game)Internal messaging tool$27.7 billion acquisition by SalesforceNetflixDVD rental by mailStreaming service231 million users by 2022
- Act quickly, but thoughtfully
Speed matters, but so does strategy. Make changes based on solid data and insights.
- Keep your team in the loop
Clear communication about pivoting is key to keeping your team motivated.
- Be ready to learn new skills
Pivoting often means entering new territory. Be open to learning and hiring for new skills.
- Measure your results
After pivoting, keep tracking your progress. Use data to make improvements.
Pivoting isn't a one-time event. It's an ongoing process of evolution. As Yaron Samid, a serial entrepreneur, says:
"As an entrepreneur, you're so excited about everything that you get too emotionally tied to your product. You're not intellectually honest enough to be true to the data."
Stay open to change, keep listening to your customers, and be ready to adapt. That's how you turn a struggling startup into a success story.
FAQs
When should a startup pivot?
A startup might need to pivot when:
- Customers aren't biting
- The product misses the mark
- Money's running out with no growth in sight
- The team's losing steam
Jyoti Bansal, Co-founder of Harness and Traceable, puts it this way:
"If you've given it a fair shot and things still aren't clicking, it's time to reassess."
What changes might a business make when it pivots?
When pivoting, a business could shake things up like this:
ChangeWhat It MeansReal-World ExampleValue PropositionRethink what you're offeringSlack: Gaming → Workplace chatTarget AudienceFind new customersKISSmetrics: General analytics → Internet marketersProduct/ServiceTweak main featuresInstagram: Location check-ins → Photo sharingBusiness ModelNew way to make moneyNetflix: DVD rentals → Streaming service
