city unrulyversity value proposition
TRANSCRIPT
First Things First: Getting Your Value Proposition Right
@benmumbycroft / @oneltd
1. Define what we mean by the term “Value Proposition”
2. Look at some templates for crafting a clear and compelling VP
3. Get you apply these to your own business/startup/crazy idea etc.
4. Explore how you can test your VP in the real-world
Tonight’s session
Enterprise Educator
Marketer
Today’s session
2 Parts
Part 1 = Articulating your value proposition
AKA Elevator Pitch, High Concept Pitch, USP, Positioning Statement etc.
00:01:00
Quick exercise: What’s your value proposition?
Value Proposition #1 = A promise of value to be delivered.
See wikipedia.com for full details
See typeform.com for full details
See typeform.com for full details
See typeform.com for full details
See typeform.com for full details
Add one more example here…
See typeform.com for full details
Add one more example here…
Internally It gives the team purpose and direction
Externally It forms the basis of how you market to and interact with customers
Your value proposition is the crunch point between business strategy and brand strategy
See peterjthomson.com for full details
Between What you make & Why people buy it
See peterjthomson.com for full details
In a world where everyone is after your business you must supply your customers with a compelling reason to buy you instead of your competitor.
Jack Trout
Value Proposition #2 = where your company’s product offer intersects with your customer’s desires
See peterjthomson.com for full details
Value to Customer of the Product/Service
Ability to Provide a Unique
Product/Service X
See guykawasaki.com for full details
Product offer
Customer?
Customer + Desire
Key VP elements What you do Who you do it for Why it’s different/compelling What the benefit is
Value Proposition TEMPLATES
GEOFF MOORE’S VALUE POSITIONING STATEMENT Part 1 Value of the Offering FOR… ___________________________________ (Target Customer)
WHO… __________________________________ (Statement of the Need)
OUR (PRODUCT NAME) IS… ________________ (Product/Service Category)
THAT… __________________________________ (Statement of Benefit)
Part 2 Positioning the Value UNLIKE… ________________________________ (Primary Competitive Alternative)
OUR PRODUCT/SERVICE… _________________ (Primary Differentiator)
BECAUSE OF OUR… _______________________ (Proof that Benefits can be Delivered)
See torgronsund.com for full details
GEOFF MOORE’S VALUE POSITIONING STATEMENT EXAMPLE Part 1 Value of the Offering FOR… non-technical marketers (Target Customer)
WHO… who struggle to find ROI in social media (Statement of the Need)
OUR (PRODUCT NAME) IS… a web-based analytics software (Product Category)
THAT… translates engagement metrics into actionable revenue metrics (Benefit)
Part 2 Positioning the Value UNLIKE… traditional specialist software (Primary Competitive Alternative)
OUR PRODUCT/SERVICE… is super simple and easy to use (Primary Differentiator)
BECAUSE OF OUR… commitment to Interface Design & UX (Proof Benefits Delivered)
See torgronsund.com for full details
VENTURE HACKS’ HIGH CONCEPT PITCH
[Proven industry example] for/of [new domain] Examples Google Analytics for Social Media Flickr for Video Uber for Hairdressers Bloomberg for Crowdfunding
See venturehacks.com/pitching for full details
STEVE BLANK’S XYZ
We help X do Y doing Z Example We help non-technical marketers discover return on investment in social media by turning engagement metrics into revenue metrics
See steveblank.com for full details
VLASKOVITS & COOPER’S CPS
Customer: ______________________________ (Who your customer is)
Problem: _____________________________ (What problem you’re solving for them)
Solution: ________________________________ (What your solution is)
Example We help non-technical marketers discover return on investment in social media by turning engagement metrics into revenue metrics
See custdev.com for full details
DAVE MCCLURE’S ELEVATOR RIDE • Short, simple, memorable; what, how, why • 3 keywords or phrases • No expert jargon Examples HubSpot is the easy way to turn social media engagement into revenue Mint.com is the free, easy way to manage your money online
See @DaveMcClure for full details
GUY KAWASAKI’S VAD APPROACH
[verb; application; differentiator] Examples Discover social media engagement and convert into revenue Share Powerpoint and Keynote slides including audio (Slideshare)
See guykawasaki.com for full details
Bonus Level
MARTY NEUMEIER’S ONLINESS STATEMENT The ONLY… _________________________________ (Product Category)
That… ______________________________________ (Differentiation)
For… ________________________________________ (Target Customer)
Who… _______________________________________ (Customer Desire/Need)
In… _________________________________________ (Target Market)
In an era of/when… ____________________________ (Trend)
See liquidagency.com/marty-books/ for full details
TThhee OONNLLYY…… motorcycle manufacturer
TThhaatt…… makes big, loud motorcycles
FFoorr…… macho guys (and macho “wannabees”)
WWhhoo…… want to join a gang of cowboys
IInn…… the United States (mostly)
IInn aann eerraa ooff…… decreasing personal freedom
Value Proposition YOUR TURN!
Geoff Moore’s VP Statement
Part 1 Value of the Offering FOR… __________________________________________________ WHO… _________________________________________________
(OUR PRODUCT/SERVICE NAME) IS________________________ THAT… _________________________________________________
Part 2 Positioning the Value UNLIKE… _______________________________________________ OUR PRODUCT/SERVICE… _________________________________
BECAUSE OF OUR… _______________________________________
(Target Customer)
(Statement of Need)
(Product/Service Category)
(Statement of Benefit)
(Primary Competitive Alternative)
(Key Differentiator)
(Proof Benefits Can Be Delivered)
GEOFF MOORE’S VALUE POSITIONING STATEMENT EXAMPLE Part 1 Value of the Offering FOR… non-technical marketers (Target Customer)
WHO… who struggle to find ROI in social media (Statement of the Need)
(OUR PRODUCT NAME) IS… a web-based analytics software (Product Category)
THAT… translates engagement metrics into actionable revenue metrics (Benefit)
Part 2 Positioning the Value UNLIKE… traditional specialist software (Primary Competitive Alternative)
OUR PRODUCT/SERVICE… is super simple and easy to use (Primary Differentiator)
BECAUSE OF OUR… commitment to Interface Design & UX (Proof Benefits Delivered)
See torgronsund.com for full details
1. Keep it short 2 sentences max
2. Keep it simple no
complicated business jargon
3. Be bold & specific not bland and generic
TOP TIPS
AAnndd rreemmeemmbbeerr:: The Pub Test
Part 2 = Getting it right
TEMPLATES
Your customers are the judge, jury and executioner of your value proposition!
IInnttrroodduucciinngg Steve Blank
Concept Dev Testing Launch Customer
Concept Dev Testing Launch Customer
II’’mm ssoorrrryy,, wwhhyy ddoo II nneeeedd tthhiiss
aaggaaiinn??
customer
Customer Discovery
Customer Validation
PPrroobblleemm SSoolluuttiioonn ffiitt PPrroobblleemm
MMaarrkkeett ffiitt
Customer Discovery
Customer Validation
PPrroobblleemm SSoolluuttiioonn ffiitt
PPrroobblleemm MMaarrkkeett ffiitt
This is awesome!
customer
IInnttrroodduucciinngg Alexander Osterwalder
Value Proposition #3 = A description of the benefits customers can expect from your products & services
See businessmodelgeneration.com for full details
TEMPLATES
The Business Model Canvas Helps you create value for your business The Value Proposition Canvas Helps you create value for your customer
See businessmodelgeneration.com for full details
1. CUSTOMER PROFILE
2. VALUE MAP
See businessmodelgeneration.com for full details
GGaaiinnss describe the outcomes customers want to achieve or the concrete benefits they are
seeking
CCuussttoommeerr JJoobbss describe what customers are trying to get done in their work and their lives, as expressed in their own words
PPaaiinnss describe bad outcomes. Risks, and obstacles related to
customer jobs
See businessmodelgeneration.com for full details
GGaaiinn CCrreeaattoorrss describe how your products and services create
customer gains
PPaaiinn RReelliieevveerrss describe how your products and services alleviate customer pains
This is a list of all the PPrroodduuccttss aanndd SSeerrvviicceess a value proposition is
built around
See businessmodelgeneration.com for full details
The set of value proposition benefits you design to attract
customers
The set of customer characteristics that you
assume, observe, and verify in the market
See businessmodelgeneration.com for full details
Testing is key!
Business people are looking for methods to help
them design better value propositions
Launch a Google Adwords campaign around the
search term “value proposition”
How the campaign performs in terms of clicks
We can achieve a click-through-rate (CTR) of at least
2%
1. Extract Hypotheses
2. Prioritise Hypotheses
3. Design Tests
THE TESTING PROCESS
See businessmodelgeneration.com for full details
4. Prioritise Tests
5. Run Tests 6. Capture Learnings
THE TESTING PROCESS
See businessmodelgeneration.com for full details
7. Make Progress (One foothold at a time)
1. Capture your Value Proposition hypothesis (use one of the templates
provided)
2. Use the Value Proposition canvas to ‘dig deeper’ and work out if you have
a fit
3. List and prioritise key value assumptions
4. Design simple tests and learn by
doing
4-key steps
www.oneltd.co.uk @OneLtd
Agency to Rule Them All !
We are the ONLY______________________________
That _____________________________________________
For ______________________________________________
Who _____________________________________________
In _______________________________________________
In an era when __________________________________
Marty Neumeier’s Onliness Statement
(Product Category)
(Primary Differentiation)
(Target Customer)
(Customer Desire/Need)
(Target Market)
(Background Trend)