iLLP@Tecnico

2 – Value Proposition Luis Caldas de Oliveira

Agenda for Session 2

• Q&A about Customer Segments

• Team Presentations on Value

Proposition Findings

• Summary about Channels

• Work for Next Week

Q&A CUSTOMER SEGMENTS

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”.

Hypotheses

• Problem

• Customer

• User

• Payer

Customer Segments

VPC - Customer

Segments

• Customer jobs – what he wants to get

done

• Customer pains – undesired costs

• Customer gains – expected benefits

Customer Segments

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

Goal

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

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?

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?

One-sided Market

• Product/service serves a single class of

customers

• The value propositions does not depend

on interaction between classes of

customers

Multi-sided Market

• Product/service serves multiple

customer classes

• Some of the value propositions depend

on interaction between multiple classes

of customers

Customer Workflow

TEAM PRESENTATIONS ON VALUE

PROPOSITION

CHANNELS

Two Questions

1.How do you want to sell your product?

1.How does your customer want to buy

your product?

How do you want to

sell your product?

Yourself

Through someone else

Retail

Wholesale

Bundled with other products/services

How does your customer

want to buy your

product? Same day

Delivered and installed

Downloaded

Bundled with other products/services

As a service

…

Types of Channels

• Direct: sell it yourself

• Indirect: OEM, VAR, Reseller,

Distributor

• Licensing: they make it and sell it

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)

Channel Economics

• Commission

• Percentage of sales price

• Discounted pre-purchase

Channel Economics:

Distributor/Reseller

SG&A – selling, general and administrative expenses

R&D – research and development expenses

Book Publishing

Book Publishing

Economics

Channel Diagram

(Direct)

NEXT WEEK

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?

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

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

Obrigado