Value Proposition Flashcards
value proposition
- What are you doing
- helps understand patterns of value creation
- leverage the experience and skills of your team
- avoid wasting time on ideas that will not work
how to state your value propostion
- for
- who
- the (product name) is a (product category)
- that (statement of key benefit)
for
target customer, the segment you are trying to solve a problem for
who
statement of monetizable pain, who is experiencing problem/pain
the (product name) is a (product category)
the product you are offering
that (statement of key benefit)
the unique value you are offering
types of customer jobs
what are customers trying to get done in their work and in their lives expressed in their own words
- functional
- social
- emotional
Customers are often looking for their products to fulfill multiple jobs
functional
- functional nature, the job you want to get done, focus on the task
- Mow the lawn, eat healthy
social
- look trendy, how people perceive you – customer wants to look good
- By hiring this product/ service you can look trendy
- How customers want to be perceived by others
emotional
- peace of mind, feeling secure
supporting job
- buyer of value
- cocreate of value
- transfer of value
buyer of value
- jobs relate to buying value.
- Such as comparing offers, deciding that products to buy, completing a purchase
cocreate of value
- jobs related to co-creating value with your organization.
- Such as posting product reviews, feedback
transfer of value
- jobs related to the end of a value propostion’s life cyle.
Such as cancelling a subscription, disposing of a product, reselling it.
customer pain
Anything that annoys the customers before, during, and after trying to get a job done (something that prevents them)
Pains describe risks – potential bad outcomes related from getting a job done (undesired outcomes, problems and characteristics)
Obstacles
Pain severity – can be extreme or moderate
customer gains
The outcomes and benefits your customers want
Gains include functional utility, social gains, positive emotions, and cost-saving
types of gain
- required
- expected
- desired
- unexpected
required gains
gains without which a solution would not work (can call with a phone)
expected gains
basic gains that we expect from a solution, even if it could work without them
desired gains
gains that go beyons what we expect from a solution but we would like to have them (customer would come up with it if asked)
unexpected gains
gains that go beyond customer expectations and desires (would not be able to come up with if asked)
value map components
- products and services
- gain creators
- pain relivers
the one in the box
products and services
A list of products and services your value proposition is built around
Tangible (physical products) and intangible (copy rights, patents)
gain creators
- Describe how your products ans services create customer gains
- Focus on the ones that are relevant
pain relivers
- Describe how your products and services alleviate customer pains
- Focus on extreme pain points
importance of fit
Achieved when customers get excited about your value proposition
- happens when you address import jobs, alleviate extreme pain points and create essential gains that customers care about
three kinds of fit
On paper – problem-solution fit
In the market – product-market fit
In the bank – business model fit
