Customer development is a methodology of building startups and new corporate ventures. This model is merely a companion for the product development model.
The methodology assumes that new ventures have untested assumptions about their business model:
Customer development starts with the key idea that there are no facts inside your building so get outside to test them.
Customer development is the opposite of "if we build it, they will come" product development strategy.
This model was created by Steve Blank and according to him, startups and new ventures are not smaller versions of a large organization that executes a proven business model, but an organization in search of a scalable and profitable business model.