Unit 2 - Opportunities Flashcards
Value proposition
- Description of the benefits that the customers can expect from a product/ service
- It is the reason why customers turn to one company over the other
- Value may be quantitative (price, speed of service) or qualitative (status, design, customer experience)
- Understand what the customer values in order to design successful products: product-market fit
- Sequence to transform ideas into potential businesses
- Reduce commercial risk and development costs (lack of market)
- It is the starting point of the entrepreneurial process
draw value proposition graph
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Value proposition canvas:
Tool that allows to design, test, and visualize the value of your product for customers in a structured way
Value proposition canvas - Customer Jobs
What jobs do my customer try to get done?
• Functional
• Social
• Emotional
Value proposition canvas - Customer Pains
Negative emotions that annoy customers that try to get their job done
• Frustrations
• Risks
• Obstacles
Value proposition canvas - Customer Gains
Positive outcomes that customers want to achieve
• Concrete results
• Benefits
• Aspirations
Value proposition canvas components
- CUSTOMER: jobs, pains & gains
- PRODUCTS & services
- GAIN creators
- PAIN relievers
Choosing the customer segment
- POTENTIAL: Purchasing power, reasons to buy
- STRATEGIC INTEREST: What other segments could we access if we dominated this target customer? What chances do competitors have to block me the access to this target customer?
- FIT WITH FOUNDING TEAM: Is there a fit between the target customer and the founding team in terms of values, passions…
- MARKETING: Is it easy to reach? What are our chances to offer the customer quickly our product (alone or with cooperation)
Choosing the customer segment - TAM
TAM: Total addressable market
- Size of the largest possible market, independently from our ability to reach and serve it
- Represents the total size of the business opportunity (In euros)
- Total demand or turnover of the industry
Choosing the customer segment - Useful tools
- Problem interview
- Buyer persona
- Empathy map
What is the PROBLEM INTERVIEW?
“Interview with early adopters, of a maximum of 30 minutes and focused on the client and his vision of the world”.
• Validate: customer segment and problem
• Assess: importance of the problem, who suffers from it and how they currently solve it
How to do the PROBLEM INTERVIEW?
- Welcome: Start of the interview (do not sell anything or convince of anything, just listen and learn)
- Demographic information: basis for validating the client profile
- Context of the problem: description
- Customer experience and assessment: problem definition validation
- Vision of the customer’s world: how to solve the
problem and assess possible solutions (competition and
alternatives) - Conclusion: thank the help and make contact
- Document results: template, notes and comments
What is the BUYER PERSONA?
“Detailed description of someone who represents the target customer and embodies the characteristics defined in the end user profile.”
How to do the BUYER PERSONA?
- Collect data: public and current users (own or competitors) with social networks (Facebook Audience Insights), Google (Trends and Analytics), LinkedIn, events…
- Identify common characteristics: basis for detecting unique personalities within the specific initial market
- Persona: name, age, gender, occupation, income, location, training, interests, challenges, vital moment (in B2B, company size and parties involved in making purchase decisions)
What is the EMPATHY MAP?
- “A complete and specific description of the end user profile”.
- Tool that helps understand the client (go beyond demographic characteristics)
