Ba in startups summary

Value Proposition Design

By Oksana Krykun | 3.09.2016

> See which value you deliver to customer

> Which is your UVP

> Recognize how they provide at least some of services

> Form MVP - expected features and wow-features

What for?


PROBLEMSOLUTION

Business Model and Value Proposition canvas:

Customer Profile

Customer Jobs: describe what customers are trying to get done in their work and their lives, as expressed in their own words.

Pains: describe bad outcomes, risks, and obstacles related to customer jobs.

Gains: describe the outcomes customers want to achieve or the concrete benefits they are seeking.


Value Map

Pain relievers: describe how your product and services alleviate customer pains.

Products and services: a value proposition is build of.

Gain creators: describe how your product and services create customer gains.


Customer Jobs> Functional (act)

> Social (look good, power/status)

> Personal/emotional

> Supporting:>> Buyer of value

>> Co-creator of value>> Transferrer of value

NB!

Job context

Job importance


Customer Pains

> Undesired outcomes, problems, and characteristics

> Obstacles

> Risks

Consider:

Pain severity

Concrete pains


Customer Pains | Possible questions> How do your customers define “too costly”? A lot of time? Money or requires substantial efforts?

> What makes your customers feel bad? What are their frustrations, annoyances, or things that give them a headache?

> How are current propositions are underperforming for your customers? Which features are they missing? Are there performance issues that annoy them or malfunctions they cite?

> What are negative social consequences do your customers encounter or fear? Are they afraid of loss of face, trust, status?

> What keeping your customers awake at night?

> What common mistakes are your customers make?

> What barriers are keeping your customers from adopting a value proposition? Upfront investments, learning curve? By Oksana Krykun | 3.09.2016

Customer Gains

> Required gains

> Expected

> Desired

> Unexpected

Consider:

Gain relevance

Concrete gains


Customer Gains | Possible questions> Which savings (time, money, effort) they would value?

> What quality levels do they expect and what would they wish for more or less of?

> How do current value propositions delight your customers? Which specific features do they enjoy? What performance and quality do they expect?

> What positive social consequences do your customers desire? What makes them look good or/and increases their power and status?

> What do customers dream about? What do they aspire to achieve, or what would be a big relief in them?

> How do your customers measure success and failure?

> What increases your customers` likelihood of adopting value proposition?


Quick example


Do not forget to RANK them!


Products and Services

> Physical/Tangible

> Intangible

> Digital

> Financial

NB!

Relevance


Pain Relievers> Product savings

> Make your customers feel better

> Fix underperforming solutions

> Put an end to difficulties and challenges your customers feel

> Wipe out negative social consequences your customers fear

> Eliminate risks your customers fear

> Help your customers sleep better at night

> Limit customers` mistakes

Consider:

Relevance


Pain Relievers> Create savings that pleasure your customers

> Product outcomes customers expect or exceed their expectations

> Outperform current value propositions and delight your customer

> Make your customers` work or life easier

> Create positive social consequences

> Do something specific

> Fulfill a desire customers dream about

> Produce positive outcomes matching your customers` success and failure criteria

Consider:

Relevance


Do not forget to RANK them!


Cusomer profile | in brief1. Pick a customer segment that

you would like to analyse in detail.

2. Figure out what tasks your customers are trying to accomplish and mention each on a separate sticky note.

3. Pinpoint the pains customers have including the challenges and risks they face.

4. Pinpoint the gains the customers would have.

5. Rank the jobs, pains and gains in order of relevance and severity for the customer.


Value Map | in brief1. Jot down all the products and services in

your portfolio which combine to make up your value proposition.

2. Describe how your value proposition contributes to eliminate your target customer’s pain points. Separate sticky notes should be used for each pain reliever.

3. Describe how your value proposition contributes a positive result for your target customer. Separate sticky notes should be used for each gain creator.

4. Ultimately all three elements; products and services, pain relievers and gain creators should be ranked according to their relative importance to the target customer. By Oksana Krykun | 3.09.2016

Ad lib is:


Validation Board



When to use?

• To test startup ideas without investing money

• To focus what you really need for your product business idea


Business Model Canvas, Lean canvas


PRODUCT MARKET

Lean Canvas


Lean Canvas - to validate value on the market:

• To confirm the valuability of the product

• To define the MVP

• MVP development and validation with lean methods

• Data confirmation on the 3-d step.


Lean Canvas | steps:• Problem: a brief description of the top 3 problems

you have addressed.

• Customer segments (from BMC)

• Unique Value Proposition (Value proposition canvas)

• Solution: the MVP which demonstrates the UVP

• Key activity: the key actions users take that maps to

revenue or retention

• Channels (BMC)

• Cost / Revenue structure

• Unfair advantage - why you are hard to be copied


Competitors` Analysis


To answer:

• Direct/Indirect

• What is your competitive advantage?/Whether your competitive advantage still “competitive”?


Question your product!● Who are my current competitors? What is their market share? How successful are they?

● What market do current competitors target? Do they focus on a specific customer type, on serving the

mass market, or on a particular niche?

● Are competing businesses growing or scaling back their operations? Why? What does that mean for

your business?

● How will your company be different from the competition? What competitor weaknesses can you

exploit? What competitor strengths will you need to overcome to be successful?

● What will you do if competitors drop out of the marketplace? What will you do to take advantage of the

opportunity?

● What will you do if new competitors enter the marketplace? How will you react to and overcome new

challenges?



General approach:Competitor

1Competitor

2Competitor

3Competitor

4 YOU

Feature #1 +/- +/- +/- +/- +/-

Feature #2 +/- +/- +/- +/- +/-

Feature #3 +/- +/- +/- +/- +/-

Feature #n +/- +/- +/- +/- +/-


Do not forget about:Competito

r 1Competito

r 2Competito

r 3Competito

r 4 YOU Client 1(value)

Client 2(value)

Feature #1 +/- +/- +/- +/- +/- high low

Feature #2 +/- +/- +/- +/- +/- low medium

Feature #3 +/- +/- +/- +/- +/- low high

Feature #n +/- +/- +/- +/- +/- medium high


As a result:

• See which value you deliver to customer

• Which is your UVP

• Recognize how they provide at least some of services

• Form MVP - expected features and wow-features


Have questions? Contact:[email protected]

FB: Aksena Krykun

mailto:[email protected]

mailto:[email protected]