dataDriven

Series “Blind Spots in Entrepreneurship”: Willingness To Pay (WTP) – Are Customers Willing to Pay Repeatedly?

What is WTP?
Willingness To Pay is not simply about asking:
“Will customers pay?”
but rather:
“Are customers willing to pay the right price, without subsidies or external support, and continue paying repeatedly over time?”

A common and risky misconception
Many startups assume:
“Customers have paid → therefore the product has value.”

However, KisStartup’s practical observations show that customers may pay:

  • for a pilot project,
  • due to grant or donor funding, or
  • because there are no alternatives at the time.

Yet they may not:

  • purchase a second time,
  • expand usage, or
  • recommend the product to others.

In such cases, WTP exists momentarily, but Product–Market Fit (PMF) does not.

WTP alone is not enough – repurchase and continued usage matter
A product with genuine PMF typically shows that:

  • customers return for second and third purchases,
  • perceived value increases over time rather than declines,
  • customers proactively request additional features, service tiers, or expansions.

Conversely, when:

  • only a small number of customers pay,
  • the observation period is too short, and
  • data is not analyzed by cohorts and cycles,

startups are highly prone to false positives about PMF.

KisStartup’s perspective: PMF is a process, not a milestone
Across our incubation and acceleration programs, we emphasize that PMF is not something you “achieve” in a single month.
PMF is an ongoing process of validating assumptions through real behavior and real data.

We therefore advise startups to:

  • observe at least 3–6 months before declaring PMF,
  • track activation, retention, and WTP simultaneously, and
  • avoid premature scaling when evidence is still weak.

Do not celebrate too early
The first paying customer matters.
But PMF only emerges when customers stay, return, and pay repeatedly.

If you are building a startup, ask yourself:

  • Do customers come back?
  • How long do they continue using the product?
  • Do they buy more or upgrade?
  • Will they still pay when support or incentives are removed?

Only when these questions are answered with data rather than intuition are you truly approaching PMF.

© Copyright KisStartup. Any reproduction or citation must clearly acknowledge KisStartup.

 

Author: 
KisStartup

Digital Transformation – A Catalyst for Self-Learning and Strategic Innovation of Business Owners

Digital Transformation (DT) is no longer just about applying technology; it is increasingly seen as a journey of growth that enhances the self-learning ability of business owners. For small and medium-sized enterprises (SMEs), the capacity for continuous and independent learning is a key factor to adapt to a volatile market and to drive strategic decision-making (McKinsey, 2023). Drawing on experience from projects implemented by KisStartup in Vietnam, this article highlights how DT – especially through Artificial Intelligence (AI) – empowers entrepreneurs to strengthen their self-learning skills, which in turn directly reshapes their strategic choices.

 

Self-directed learning has long been considered an important ability for organizations to adapt (Knowles, 1975). In the digital age, the integration of AI tools turns learning activities from passive intake into an active process of exploration and strategic reflection. Instead of asking “What is this concept?”, business owners gradually learn to search by themselves, experiment, and test strategic options through digital platforms.

Recent studies confirm that AI not only automates processes but also creates personalized learning environments for managers and employees. Platforms such as LinkedIn Learning, Coursera for Business, and Udemy Business have applied AI algorithms to analyze learning progress, detect knowledge gaps, and suggest suitable skill paths (MISA, 2023). This shortens the time to acquire new capabilities and at the same time promotes the adjustment of business strategies.

AI and Business Effectiveness

Adoption rate and learning effectiveness
Global surveys show that the rate of AI adoption in business management has increased rapidly. According to IBM, Forbes, and McKinsey, the percentage of businesses applying AI rose from 33% in 2022 to 72% in 2024 (SkillsBridge, 2023). Another study of 7,500 companies showed that 35% had integrated AI into their processes, while 42% were experimenting (IBM, 2023).

The effect on learning is very clear. AI-based training systems can detect skill gaps, forecast progress, and adjust the curriculum accordingly (AMIS, 2024). Thanks to this, business owners develop a habit of guided self-learning, which is both repetitive and evidence-based.

Performance and strategic innovation
AI-based automation brings significant improvements in performance:

  • Businesses report a 20–30% increase in labor productivity thanks to data analysis and decision support (McKinsey Global Institute, 2023).

  • In customer service, AI helps increase productivity 1.71 times while reducing staff from 600 to 350 people (Nhân Dân, 2024).

  • The application of AI in work management saves an average of 5.4% of weekly working time (~2.2 hours per employee) (Louis, 2024).

These numbers show that AI not only optimizes processes but also creates conditions for employees to focus more on strategic activities, giving business owners more space for critical thinking and strategic innovation.

Cost optimization and human resource development
AI also helps reduce operating costs by up to 25% (Gartner, 2023). This saving allows SMEs to reinvest in training and innovation. When AI is integrated into human resource management and development, entrepreneurs themselves become active learners, ready to test different pricing scenarios, market strategies, and partnership models.

KisStartup’s Approach: Stronger Businesses through Smarter Entrepreneurs

KisStartup’s projects show that digital transformation is not about “doing things for businesses,” but about empowering them to do it themselves. Businesses are encouraged to directly use AI tools, analyze results, reflect, and adjust their own strategies.

In digital transformation accelerator programs in the Northern mountainous region of Vietnam, small homestay owners applied AI tools to design their own marketing campaigns. Export-oriented SMEs used data analysis to adjust product prices and find new markets. Although at first they still made mistakes—such as not providing non-sensitive data to the tools—it was precisely these experiences that helped them understand that openness and transparency are conditions for AI to maximize effectiveness.

We emphasize that digital transformation is a process of nurturing lifelong learning capacity for business owners. The goal is not only short-term productivity, but also forming the habit of self-learning, experimenting, and continuously adapting—qualities that are essential for strategic innovation in an uncertain environment.

Theoretical and Practical Implications

  • Resource-Based View (RBV): AI-supported self-learning helps businesses reconfigure resources into competitive advantages.

  • Dynamic Capabilities Framework (DCF): Continuous self-learning strengthens the ability to “sense, seize, and transform” which is necessary for strategic flexibility (Teece, 2018).

  • Scaling implications: When businesses build internal learning capacity with AI, scaling becomes more efficient, reducing marginal costs and improving operational performance.

International data matches KisStartup’s observations: SMEs applying AI not only improve productivity but also shift their strategic mindset from reactive to proactive. Therefore, digital transformation is not only a technological change but also a transformation of awareness and organization.

Conclusion

Digital transformation, especially with AI, should be understood as a catalyst for the self-learning capacity and strategic innovation of entrepreneurs. Evidence shows that AI increases productivity, reduces costs, and creates personalized learning environments. The greatest value lies in business owners being able to self-learn, self-reflect, and shape their own strategies.

KisStartup’s approach emphasizes this factor: equipping businesses with the ability to explore and ask questions, so that digital transformation becomes the path toward adaptability and long-term competitiveness. In the context of globalization, successful businesses are not necessarily those with the most advanced technology, but those whose leaders know how to learn and continuously adapt.

 

References

Author: 
KisStartup