2017 student cohort - louisiana state university2017 student cohort session 5: value proposition and...
TRANSCRIPT
2017 Student CohortSession 5: Value Proposition and
Customer Segments
AgendaProduct Market FitValue PropositionCustomer Segments2-Sided and Multi-Sided MarketsMapping Market Types
PRODUCT-MARKET FIT
Tonal Innovation
Tonal Innovation
Tonal Innovation
What makes a good Customer Segment• They are PEOPLE• Specific and well-defined group of people• Very few people who fit the specific
description won’t buy your product• Have willingness and ability to pay• Their performance or pay is judged on a
metric that you can improve
What Matters to Customers
Customers do not care about your technologythey care how the product creates value to them
Customers do not exist to buy your productyou exist for your customers
Keys to a good Value Proposition
• Direct benefit to customer• Concise• Specific and quantitative• Uniquely delivered by your team• In words your customer would actually
say
Tonal Innovation
What is Tonal Innovation’sValue Proposition?
Tonal Innovation
Tonal Innovation
Save a quantifiable, measurable amount of money
3P Quickcure Clay
“Cure-on demand”Wood Filler
for home repair
3P Quickcure Clay
Who should he interview?Who is his customer?
3P Quickcure Clay
PIVOT
3P Quickcure Clay
Who should he interview?What kind of questions
should he ask?
3P Quickcure Clay
Current curing
method
3P Quickcure Clay
What is his Value Proposition?
3P Quickcure Clay
Save a quantifiable,measurable amount
of time
3P Quickcure Clay
The biggest reason startups fail….Building the Wrong Thing -79% Failure
Startups do not fail because they fail to make something.
Startups fail because they make something no one wants to buy.
2-SIDED MARKET
AdvertisersUsersRenters
Property Owners
For every customer segment there is a different value proposition and a different revenue stream. One segment cannot exist without the other.
Multi-Sided Markets
MAPS
WORK FLOWECOSYSTEMVALUE CHAINPETAL
WORK FLOWSHow is the problem solved today?Steps in the process Materials / Data / PeopleDecision Points
ECOSYSYSTEM MAPS• All the players – who affects your
success?
VALUE CHAIN• Raw materials to finished product
Hypothesis: Our technology fits into the solar panel manufacturer segment of the value chain.
Experiment:Talk to module manufacturers.
DISCOVERY
“Glass for modules arrives available as already coated”
INSIGHT
Glass suppliers are our customer. They only care about process.We have to fit into their work flow.
VALUE O F MAPS!
PETAL DIAGRAM• Competitive Landscape• Helps to identify first customer
segments on BMC and first hypothesis of who are customer segments you are targeting.
For launching products by existing companies in existing crowded markets…
Metrics defined by users in the existing market
But…• Most startups are either
resegmenting existing markets or creating new ones
• Competition in the market involves intersection of multiple existing markets.
The startup is at the center of the universe.
Unlike traditional X/Y graph, you can add as many adjacent markets as needed.
MARKET TYPES affect EVERYTHING on the Business Model Canvas
Market Types
THE DREADED CHASM
Market Type Impacts Revenue Forecasts
Premature Spending is the KILLER For Startups
TEAM• Millenium Walls
• Market Type• Value Chain
• Peer2Peer Parking• Market Type• PETAL
• Terminus• Ecosystem
• E-PumpsNParts• Workflow
• Gremillionaires• PETAL
ID MARKET TYPE AND DO ONE MAP• Market Type
• Existing • Resegmented• New
• Map• Workflow• Ecosystem• Value Chain• PETAL
What’s Next?