Download to read offline
Uploaded byEmanuele Musa
Bt masterclass 2 - Value proposition development
The document focuses on strategies for developing a value proposition in the context of intrapreneurship, emphasizing customer segmentation based on various demographic and behavioral factors. It outlines the importance of understanding customer pains and gains, and provides methodologies for validating business ideas through experiments and feedback. Additionally, it describes best practices for creating a minimum viable product (MVP) that meets customer needs while minimizing complexity and focusing on key functionalities.
More Related Content
Similar to Bt masterclass 2 - Value proposition development
![[Babele] Platform & Company April 2022](https://cdn.slidesharecdn.com/ss_thumbnails/babeleplatformcompanyapril2022-220531202722-982a5028-thumbnail.jpg?width=640&height=640&fit=bounds)
Bt masterclass 2 - Value proposition development
- 1. BT Social Intrapreneurship ValueProposition
- 2.
- 3. Geographic Demographic BehaviouralPsychographic Local, National, Regional , Internationa, (city, state, or even country of residence). Ethnicity, gender, age, marital status, income, education, occupation. Spending & consumption habits, product usage intensity, desired benefits Personality traits, Social class, values and lifestyle, interests and opinions. Major Cities Man, Over 40y.o., 200K€ Salary Customers wanting a value for money impulse buy Behavioural • The time of day they tend to shop and make purchases • The time of year they shop and make purchases • The routines they go through when shopping • Their preferred place and method of shopping • The ways in which they use what they’ve purchased + + + Driven and ambitious, care about power and control, expect to be noticed Customer Segmentation
- 4. Find Taxi Call Taxi GiveDirections Pay Customer Archetype Compete with other customers Wait a long time Unsafe driver Overcharged by taxi Easy payment Fair price Arrives on time Professional Taxi Passenger in Bucharest
- 5. Focus on theearly adopters! They can die or be fired... • Who are they? • Where can you find them? • How to observe / interview?
- 6. When do youstop?What do you want to learn? 1. Is the problem real? 2. Would they pay you to solve it? 3. What solutions do they use today? 1. Interview more than 10 people 2. Understand your first customers 3. Find most urgent pains & gains Vs. Prepare your interview
- 7. Results? • What areyour assumptions? • What could you validate? • What do you need to find out?
- 9. « What theCustomer gets for what the customer pays » « It’s the primary reason a prospect should buy from you and not from the competition» Pick Two... If you can do all three, you’ll win the market place!
- 10. Good: has fewproblems Fast: available now Cheap: affordable BUT... it’s Ugly as fuck. Will you buy it? I m a g i n e a c a r . . . What about Desirability?
- 11. New • New Technology •New invention • Unique in its kind Performance • Bigger • Faster • Better Customization • Recommend products according to customer type • Ad-hoc for a customer type Design & usability • Beautiful & easy to use • Industry design & fashion • People for whom it is important Execution • Increase Productivity Price • Competitive price for the value offered Cost Reduction • Customers can reduce other kind of costs Risk Reduction • Customers feel more confident / protected ; example insurance, antivirus, condoms, etc. Convenience & accessibility • Closer to the customer • Combine services Brand or Status • The customer knows your brand / Help the client feel better Feels Good • Look / Tastes Good • Feel Entertained • Esteem / relationship • Environmentally conscious • Fosters Social Equity Positive Impact What else creates value?
- 13.
- 14. What you offercustomers? Taxi smartphone app Model S 60-85 kWh 8 years battery warranty 1. Physical / Tangible Manufactured goods, face-to-face customer service. 2. Intangible Copy-right, quality assurance, Internet security, warranty. 3. Digital Software / Mobile app, Downloads, online recommendations, etc. 4. Financial Investment funds, financing services, etc. ! Rank your products & services Product & Service
- 15. How do youalleviate customer pains? Taxi smartphone app Aluminum High performance batteries How your product eliminates: 1. Negative Emotions 2. Undesired costs & situations 3. Risks (Time, money, un-performance and mistakes) ! Rank the pain-relievers by urgency & importance Pains Relievers Instant Booking No Cash Assigned Driver Cost system Charging network
- 16. How do youcreate customer gains? Taxi smartphone app How the products lead to customer gains? E.g. Required, Expected, Desired and unexpected Gains? How to delight your customer? How your products and services fulfilling their expectations and wishes and even going beyond to surprise and delight them? ! Rank the gain-creators by urgency & importance Gain Creators Instant Booking No Cash Assigned Driver Cost system Professional driver Sate time Rating System Visual Map Focus on Design and style Performance 0- 100km/h in 4,4s High.-tech feel 17’’ touch screen Autonomous car5+2 Seats
- 17. Mention all yourproducts and services regardless of the specific customer segment they target. Categorize your products and services as either pain relievers or gain creators. Add additional pain relievers and gain creators even if they don’t match the pains or gains in your target segment. Common Mistakes List only the combination of products and services that directly provide value to the relevant customer segment. Pain reliever and gain creators list aspects of your products and services that are relevant to the target customers. Products and services match the target segment’s profile, pains and gains Best Practices Your product can’t meet all the pains and gains of your target! Best practices and common Mistakes
- 18. Customer inspired innovation FindTaxi Call Taxi Give Directions Pay Compete with other customers Wait a long time Unsafe driver Overcharged by taxi Easy payment Fair price Arrive on time Professional Taxi smartphone app Professional driver Sate time Rating System Visual Map Instant Booking No Cash Assigned Driver Cost system
- 19. Are embedded in greatbusiness models1 Focus on the jobs, pains and gains that matter the most to customers2 Focus on unsatisfied jobs, unresolved pains and unrealized gains3 Target few jobs, pains and gains, but do so extremely well4 Go beyond functional jobs and address emotional and social jobs5 Align with how customers measure success6 Focus on jobs, pains and gains that a lot of people have, or that some will pay a lot of money for7 Differentiate from competition on jobs, pains and gains that customers care about8 Outperform competition substantially on at least one dimension9 Are difficult to copy 10 10 characteristics of great Value Props
- 20. 1. What’s yourValue Proposition? 2. How does it work? 3. What are the key features? 4. How do you solve the pain? 5. How do you create gains? Take 10 minutes
- 21. Formulate your ValueProposition
- 22. Record your 1minute video pitch, upload it in the online community and test it with real people! Homework: 1 minute video pitch
- 23. A value propositionmight look great on paper… …But really it’s a set of hypotheses
- 25. Can I Developmy solution now? Chill out man...
- 26. Design Experiments forValidation
- 27.
- 28. The role ofthe experiment is to Learn! The experimentation process
- 29. What needs tobe true about the user’s goals and pains? What needs to be true about our solution to be successful? Jobs Pains Gains Product Relievers Creators 1. Extract assumptions
- 30. Where can Ifind my customers? Is the problem real? Would they pay to solve it? What solutions do they use today? The minimum set of functionalities? What’s an acceptable price? 2. Prioritize hypotheses
- 31. We prioritize assumptionsby Uncertainty & Impact 2. Prioritize hypotheses
- 32. Describe assumption tobe tested; E.g. Validate the Message with 100 people MVP: interview user, A/B Testing, etc. Method 60/100 people click on sign-up Minimum Success CriterionGoal 3. Design Test
- 33. Step 1: Describe theassumption to be tested; Step 2: Describe the way you will test your assumptions; Step 3: Define what data to be measured with the test; Step 4: Define the threshold to validate or invalidate the tested assumption. 3. Design Test
- 34. Choose an experiment typefrom the cookbook! 4. Run Test
- 35. • Gather feedbackon the need, the idea or the strategy • Listen and take notes • Look for insight, not data a. Keep talking to your customers
- 36. • Assess operationalfeasibility; • Learn about the constraints; • Discover best practices. b. Talk to an expert
- 37. • Be realizable •Look real • Be quick to change • Minimize waste • Fast to implement c. Demo or Mock-up
- 38. 3D Printouts Cardboard d.Lifeless prototypes (pinocchio)
- 39. 5000 to 75000 e. Video
- 40. • Landing page •Facebook Ads • Pop-up stands f. Fake Door
- 41. At Babele welove fake-doors…
- 42. = US$ 850M g.Concierge treatment / Mechanical Turk
- 43.
- 44. i. impersonator An existingproduct or service gets a new wrapper to pose as the new offer under test. Example – Tesla using a Lotus Elise body to test an electric engine.
- 45. j. One nightStand Product or service experience is presented in a fully functional way, but without the infrastructure that a permanent solution would need. Fruit of the Loom creating a pop-up store to test a premium brand.
- 46. User Interview Talkto an Expert Demo or Mock-up Video A/B Testing Concierge TreatmentFake door Lifeless prototype 4. Run Test Choose an experiment type from the cookbook!
- 47. Step 1: What didyou want to test and why? Step 2: What did you discover? Step 3: What are your conclusions? Step 4: What we will do next? 5. Extract Assumptions
- 48.
- 50. Design your nexttest 1 Knowtheminimumset ofneededfunctionalities 2 Knowan acceptableprice 3 Knowhowto buildthesolution
- 51. Describe the assumption tobe tested; Describe the way you will test your assumptions; Define what data to be measured with the test; Define the threshold to validate or invalidate the tested assumption. Design your next test
- 52.
- 53. Can I developmy solution now? Oh My... Are you still here?
- 54. The very first versionof your solution! Vs. The Minimum Viable Product
- 55. The MVP =the Very First Version of the product
- 56. • Functional versionof the product, but stripped down to its most basic functionality (early prototype) • It is a cost-effective way of testing just the key features • It is progressive and based on User Feedback • It starts with early adopters, and with time new users are introduced Vs. The MVP … in a nutshell
- 57. It is anearly prototype
- 58.
- 59. NO compromise onthe key features
- 60. The MVP goalis to keep learning
- 61.
- 62.
- 63.
- 64. Complexity Remove any work beyondwhat is needed to start learning Don’t focus on details too early in the process Don’t waste time on problems you don’t have yet KISS: Keep It Small & Simple
- 65. 1. What dothey like? And don’t like? 2. What would they pay for? 3. What would make them recommend it? Who’s the MVP for?
- 66. Ask them what they Thefaster the feedback loop, the better! Refine your product with them!
- 67. Customers would haveliked the full product, but the MVP sucks, so we abandoned the vision. FALSE NEGATIVE But Customers don’t know what they want! VISIONARY COMPLEX It would be faster to just build it right, all this measuring distracts from delighting our customers TOO BUSY TO LEARN Lean Startup FEARS
- 69. Find a smallgroup of users and make them love what you are doing Start with something SIMPLE and make sure you do that one thing really well. You need few good users: they give you feedback everyday! Referral Choose a niche where you can get the monopoly and then expand quickly to other markets Build a product with a great ROI!
- 70. Platform Complete assignments & getfeedback Do experiments! Take it as a scientific experiment: search validation through data! Upload Experiments notes and conclusions This Module’s assignment
- 71. Value proposition development •Define your value proposition explaining your product, pain relievers and gain creators • Record a 1 minute pitch about your value prop • Explain how your value proposition differs from competition • Define your MVP Design and run experiments • Design experiments to : • Know Minimum set of functionalities • Know an acceptable price • Validate your value proposition • Continue customer interviews • Create a product roadmap to produce your MVP This Module’s assignment
- 72. 1 postit pernugget Sort by popularityGroup your post-its Harvest your learning No clue how to price Optimal price is not the highest priority Margin pricing and competitive After each customer Interview
- 73. Speed Dating withMentors