This document summarizes an agenda for a session on value propositions: - There will be team presentations on findings about value propositions. Common errors in customer segments are discussed, such as vague data and lack of articulated hypotheses. - An overview of customer types is provided, including business to business, business to consumer, and multi-sided markets. Characteristics of each type are outlined. - Channels for selling products are covered, including direct sales, indirect channels like resellers and distributors, and licensing. How channels can be customers themselves is also addressed. - The next session will involve updating the business model canvas based on customer learning and preparing an MVP, with a focus on the

1. iLLP@Tecnico
2 – Value Proposition
Luis Caldas de Oliveira

2. Agenda for Session 2
• Q&A about Customer Segments
• Team Presentations on Value
Proposition Findings
• Summary about Channels
• Work for Next Week

3. Q&A CUSTOMER SEGMENTS

4. Customer Discovery
Wrong: “Here’s what I saw, and here’s
more of what I saw”
Good: “Here’s what I saw, and here’s what
it means”.

5. Hypotheses
• Problem
• Customer
• User
• Payer

6. Customer Segments

7. VPC - Customer
Segments
• Customer jobs – what he wants to get
done
• Customer pains – undesired costs
• Customer gains – expected benefits

8. Customer Segments

9. Common Errors on
Customer Segments
• Poorly designed and vague data from
customer interviews (“they liked our
product”)
• No articulation: hypotheses/experiments
with pass/fail tests
• Confusion between
users/payers/recommenders, etc.
• No customer archetype

10. Goal

11. Types
• B2B (Business to Business): use or buy
inside a company
• B2C (Business to Consumer): use or
buy by consumers
• B2B2C: sell a business to get to a
consumer or other multi-sided markets

12. B2B
• What are the company needs?
• What is the market?
• Who is the customer in a company?
• How does the company buy?
• How do they hear about you?

13. B2C
• What the consumer needs?
• What is the market?
• Do they buy it for themselves? Need
approval?
• How the consumer decides to buy?
• What is the sales channel?

14. One-sided Market
• Product/service serves a single class of
customers
• The value propositions does not depend
on interaction between classes of
customers

15. Multi-sided Market
• Product/service serves multiple
customer classes
• Some of the value propositions depend
on interaction between multiple classes
of customers

16. Customer Workflow

17. TEAM PRESENTATIONS ON VALUE
PROPOSITION

18. CHANNELS

19. Two Questions
1.How do you want to sell your product?
1.How does your customer want to buy
your product?

20. How do you want to
sell your product?
Yourself
Through someone else
Retail
Wholesale
Bundled with other products/services

21. How does your customer
want to buy your
product?
Same day
Delivered and installed
Downloaded
Bundled with other products/services
As a service
…

22. Types of Channels
• Direct: sell it yourself
• Indirect: OEM, VAR, Reseller,
Distributor
• Licensing: they make it and sell it

23. The Channel can be
the customer
• Products embedded in others (OEM –
original equipment manufacturer)
• Products resold by others (VAR – value
added reseller)
• Products distributed by others
(Distributor)

24. Channel Economics
• Commission
• Percentage of sales price
• Discounted pre-purchase

25. Channel Economics:
Distributor/Reseller
SG&A – selling, general and administrative expenses
R&D – research and development expenses

26. Book Publishing

27. Book Publishing
Economics

28. Channel Diagram
(Direct)

29. NEXT WEEK

30. Presentation for Next
Week
• Slide 1: Cover slide
• Slide 2: Business Model Canvas (changes marked in
red, different colors for multi-sided markets)
• Slide 3: Value Proposition Canvas (product/services,
pain relievers, gain creators, MVP)
• Slide 4: How do customers solve the problem today?
How does your value proposition help?

31. Presentation for Next
Week (cont.)
• Slide 5-n: What did you learn about your Customers:
hypothesis, experiments, results, action
• Slide n+1: Diagram of customer workflow
• Slide n+2: Customer archetype

32. Before Next Class
• Talk to 10 customers about Customer
Segments
• Update LPC Narrative and Canvas
• MVP: site or wireframe (web/mobile),
prototype, model, crowdfunding
(physical product)
• Prepare Class Presentation
• Watch Lecture 4: Channels

33. Obrigado