Practical Assignment : The elevator pitch & NABCGet your point across
Your Elevator Pitch It’s a communication tool Get your point across in the time span of an elevator ride. (2 minutes max) An elevator pitch is an overview of an idea, product, service, project, person, or other solution and is designed to just get a conversation started.
Elevator Pitch BasicsA good elevator pitch is made up of two key elements: The pain statement The value propositionEvery great elevator pitch must be: Succinct Greed-inducing Low in tech talk Irrefutable
Elevator Pitch StructureYour elevator pitch should have 3 parts:1. Gain attention & hook ! Introduce your team and background Introduce your idea Start with something catchy, a story1. Your value proposition: NABC2. Actions to get to the next step: What do you need to get started: People Skills Technology
The Core = The Value Proposition A statement of an important clientproblem [Need] that proposes the unique way [Approach] you will use client resources (€€€) to deliver superior client features per unit cost [ Benefits] compared to others in their market(s) [Competition] .You don’t define value - Customers do !
It’s a simple as NABC Example of NABC:“John, I understand you’re hungry as I am [Need]. Lets go have some lunch at the company café [Approach], instead of McDonald’s [Competition] because, for the cost of McDonalds it has great food, its quiet and we can continue our conversation [ Benefits per costs]. “
Four Fundamental questions :N Customer/Market NeedA Your unique ApproachB Client/Customer BenefitsC Alternative approaches Competition“NABC” captures the essential, defining ingredients of a Value Proposition
A Typical First Value PropositionN A BC
A Typical First Value Proposition N A BC
Creating what customers want: N ABC“ Work on what’s important, not just what’s interesting- there’s an infinite supply of both”
NABC example – Video on DemandNeed: Movie rental is a 500 Mio Euro business. The part people dislike is to return tapes and late fees.Approach: We will provide VOD via the cable system with access to all the titles of IMDB. The system uses existing channels and hardware. Customers need no new investments and pay the same price for a movie as in the rental shop.Benefits: End-user: no need to return movies; no more late fees. Same functions as with a DVD player: fast forward, trailers, ..etc. Customer: Higher revenue per movie with higher margin; 20% market share expected.Competition: competition : we have patented the distribution and VCR like features for VOD alternatives : on-line rentals have higher handling costs (0.75 Euro per movie). Sending the tape back is as inconvenient as returning it. 11
Quantitative not QualitativeNeed Not: The market is growing fast Rather: Our market segment is £2M per year and growing at 20% per yearApproach Not: We have a clever design Rather: We have created a one-step process that replaces the current two-step process with the same qualityBenefits Not: The ROI is excellent Rather: Our one-step process reduces our cost by 50% and results in an expected ROI of 50% per year with a profit of £3M in Year 3Competition Not: We are better than our competitors Rather: Our competitor is Evergreen Corporation, which uses the current two-step process. We own the IP for our new process
Iterate Often & Collect Feedback Focus on Important Client Needs Write down the Value Proposition (NABC) and Elevator Pitch Iterate often – every week In a group (Watering Holes) Get out of the office Use pictures, simulations and visuals Protect any IP generated
Who stops at the watering hole ? People with different backgrounds take on various roles. Negative criticism is banned at water-hole meetings. There are three typical roles at a water hole: 1. Those who concentrate on everything that makes an idea seem good 2. Those who concentrate on everything that can improve an idea 3. Those who take on the user perspective