Gaining a Sustainable Advantage - Customer Perception of Value PCV19

2. Cute Friendly Soft Fur Fetch Potty Trained

3. $10

4. Minimum Viable Puppy v0.9 Feedback?

5. Asking customers if they like your product   is like asking “is my puppy cute?”

6. __% Fail?

7. >80% Fail $29.5 billion spent creating features that aren’t used

8. If our current best practices are so good,   why is our failure rate so high?

9. IDEAS BUILD PRODUCT MEASURE DATA LEARN This is the expensive partThis is the important part Why do we save learning for last?

10. Why build before you measure?

11. Why sprint before you know the right direction?

12. Why fail fast?   Why not focus on succeeding sooner?

13. B2B Products & Services B2C Products & Services Startups Bootstrapped Venture-funded SMB Fortune 500 Cognitive Psychology Computer Science $1B X A bit about me…

14. Agenda The Need for a Better Approach Customer Perception of Value Case Study How To

15. >80% More $ NO Optical Drive NO Ethernet Port NO Media Card Slot NO replaceable battery ONLY 1 USB slot SLOWEST processor

16. Introducing   Customer Perception of Value

17. Customer Values = motivations goals concerns emotions what people care about the “why” that makes them buy

18. Minimizing costs Increasing revenue Reducing risks Social interaction Gaining conﬁdence Making friends EXAMPLES OF CUSTOMER VALUES Environmentally friendly Socially conscious Rapid deployment Minimizing disruption Global presence Local oﬃce Convenience Wide selection Low price

19. PRODUCT VALUES FEATURES BENEFITS

20. PRODUCT VALUES FEATURES BENEFITS

21. PRODUCT VALUES FEATURES BENEFITS START HERE

22. PRODUCT VALUES FEATURES BENEFITS PRODUCT VALUES FEATURES BENEFITS People with different values   choose different products

23. People with different values   react differently to the same product

24. New deﬁnition of Market Segment:   People who share   the same perception of what’s most valuable.

25. You can segment your market by   Customer Perception of Value. Segmentation ➝ Differentiation ➝ Pricing Power

26. Values Drive Our Behavior Buying Usage Retention Recommendation Values Drive All Behavior

27. Customer Perception of Value hard to change sparks emotion discoverable measurable You can easily change ideas products or services markets or segments positioning and messaging

28. What Your  Customer   Cares About Your Idea   or   Solution What your customer will talk about What you won’t learn

29. The next time you talk to a customer, try not mentioning your idea, product or feature at all.

30. Changing the Product to Find a Fit CUSTOMERS x ? PRODUCT x

31. Understanding Customer Perception of Value helps us make better use of product analytics.

32. Designing for Customers’ Values CUSTOMER  PERCEPTION OF  VALUE UNDERSTANDING OF VALUE

33. Designing for Customers’ Values CUSTOMER  PERCEPTION OF  VALUE UNDERSTANDING OF VALUE PRICING MARKETING INNOVATION helps build a sustainable competitive advantage

34. Designing for Everyones’ Values CUSTOMER  PERCEPTION OF  VALUE UNDERSTANDING OF VALUE Features not valued reduce CPV

35. CUSTOMER  VALUES PRODUCT  VALUES MARKETING “PROMISE OF VALUE” PRODUCT -MARKET FIT Designing for Product-Market Fit

36. Understanding Customers’ Perception of Value   provides long-term guidance for sustainably innovating in directions they’ll care about marketing in ways that motivate action pricing for things worth paying for

38. Case Study - Infobip Global Messaging Infrastructure

39. Case Study - Infobip Research & insight into Customer Perception of Value Challenge: Sucessful global market leader,  dissatisﬁed with growth in N.A. Used surprising CPV insights to revise their value proposition First Step: Next Step:

40. Case Study - Infobip

41. Case Study - Infobip Recommended new Pricing Model  based on discovered customer values $ / Transaction ➔ SaaS subscription New Pricing Tiers, Bundles & Add-ons Free Service & Support ➔ Paid

42. Case Study - Infobip Subscription revenue target for entire year reached in month 2 Support Dept. on path from cost center to proﬁt center by month 6 Gross proﬁt for SMB segment   increased by 3x - 5x Product Managers happier, too! Results:

43. Case Study - Infobip “I think the single biggest problem in Product today is that folks who build products don’t know enough about their customers — yet they assume that they do.”

44. Customer values are discoverable, measurable   and quantiﬁable. Why skip this step?

46. Discover ➔ Measure ➔ Validate

47. http://nyti.ms/22y5HEK N.Y. / REGION After Funeral and Cremation, a Shock: The Woman in the Coffin Wasn’t Mom By MICHAEL WILSON MARCH 21, 2016 After a long battle with cancer, Val-Jean McDonald, mother of eight sons, with more than 20 grandchildren, almost as many great-grandchildren and three great-great- grandchildren, died on Dec. 18 at the age of 81. Her funeral, 11 days later, attracted scores of mourners to Union Baptist Church in Harlem: her sons, from Manhattan, New Jersey, Georgia, Texas and Australia; other relatives and friends; and people who had never met her but knew her children. They all filed past the open coffin, seeing familiar remnants of Ms. McDonald’s life: a favorite pink blouse and white suit, and her finest jewelry. “Why did they cut off all her hair?” a son, Errol McDonald, 57, remembers thinking. “Maybe it’s the cancer.” He bent and kissed her. But sometimes children see what adults cannot. Adults rationalize. Children call it like it is. “My 10-year-old son said, ‘Daddy, that’s not Grandma,’” recalled Mr. McDonald, a school maintenance worker in Manhattan. “I said, ‘Yes, that’s what happens,’” he told the boy, explaining that people can look different in death. The next day, the family attended Ms. McDonald’s cremation at Woodlawn

48. Why not just ask “what are your values?”

49. Explore the past reality, not the unpredictable future

50. Each Audience Perceives Value Differently Buyers / Purchasers ApproversDecision Makers Scouts / Inﬂuencers Users Evaluators Focus on one audience at a time

51. Awareness Consideration Purchase Usage Advocacy Customer Journey Different Perceptions of Value Along Customer Journey Focus on one context at a time

52. • Never pay for subjects Talk only to people who care • Gain insight with live interviews Use surveys for screening audiences • Avoid yes/no, a/b or forced choices Let them use their own words • Don’t mention your product or features Learn what they care about • Quantify the intensity of their values Learn which values matter most • Don’t disagree, prove or sell Learn what they think Customer Perception of Value Research Tips

53. Ask them to describe their behavior in your chosen context What did they actually do in that context? Ask only about the past — not the present or future Then ask about their thinking at that time What led them to do the things that they did? How did they go about making their decision? Don’t ask about features. Focus on how they decided. Interviewing for Customer Perception of Value

54. Ask your neighbor to name a purchase they made recently. Focus only on their buying decision in their customer journey Ask them to describe their behavior What did they actually do in that context? Ask only about the past — not the present or future Then ask about their thinking at that time What led them to do the things that they did? How did they go about making their ﬁnal decision? Customer Perception of Value Mini-Workshop

55. Insights into Customers’ Perception of Value

56. Innovation that matters Marketing that motivates Pricing that outperforms Use Your CPV Insights to Drive

57. Customers Perception of Value as North Star

58. The ROI of Understanding Values Faster sales cycle More customers More revenue per sale More customer retention More referrals Lower risk of failure Lower cost of development Lower cost of acquisition Cost Savings Revenue  Proﬁt  Market Share

59. to you The Value of Understanding Values