Lean @ ITPAn experiential 2 week workshop

TAM, SAM, TM, Personas and Value Propositions

Jan 13, 2016 Jen van der Meer + Christin Roman

NYU ITP

We Are Here

Intro Team

Formation

Why + Personas + How to Interview

Personas + Value Props

+ Generative Design Vision + Story + Oz Test

Relationships Channels +

First Test

How to listen, interpret, decide

Cost/Revs +Activities/Resources/

Partners

Indie vs. VC? Motivation +

Team Story x 2

Lessons Learned

Jan 11 Jan 12 Jan 13 Jan 14 Jan 15

Jan 19 Jan 20 Jan 21 Jan 22

Today’s Lecture + Workshops

• What did you learn?

• Where to aim: big TAM, small niche

• Integrate customer research findings with the Persona

• Value prop madlibs

• Shaping your idea (3 iterations) - generative concept development

Aim at TAM, Start with Niche

TAM, SAM, TMTAM =

Total Addressable Market

“people who live paycheck-to-paycheck in the US”

How do you find TAM data?Academic / Government sources

3rd party market research

Bottoms up analysis

Top down analysis

What is an incredible source?

What if you get different estimates from different sources?

TAM, SAM, TMSAM =

Served Addressable Market

“people who live paycheck to paycheck in the US”

“with smartphones”

TAM, SAM, TMTM = Target Market

“people who live paycheck to paycheck in the US”

“with smartphones”

“a specific segment, or niche, with the most need, that we are targeting in the first 1-2 years”

Point of confusion:

“If we serve that tiny group, that specific need - are we setting ourselves up to be small, and not scale (and not get funding?”

Aim:1) Find a deep painpoint for a highly targeted group, and serve them well

2) Directing you towards a larger potential addressable market

(in that order)

Personas

You can’t aim at everyone, first

“Serve a unique customer segment”

“Target a specific niche”“Aim for your most

profitable segment” “It’s better to dominate a micro segment than to aim

for everyone and hit nobody”

“Define your Archetypes”

Use Personas to Find the Pain

From: Business Model Canvas, Value Proposition Design, Alexander Osterwalder, The Innovators’s Solution, Clay Christensen and Michael Raynor

Uncover the “job to be done”

Fast Food Milkshake

40% of milkshakes purchased by commuters in

the morning - to go

What job customers hire milkshakes to do: On a a long, boring commute, customers “needed something to keep that extra hand busy and to make the

commute more interesting.” - Clayton Christensen, HBR

http://hbswk.hbs.edu/item/clay-christensens-milkshake-marketing

Uncover the “job to be done”

Soylent

Uncover the “job to be done”

DIY Soylent

Discovering Pain:

Plans Known needs

Behavior

Values Norms Assumptions

Taboo BeliefsUnknown Needs

Go deeper to find unmet needs, hidden pains:

Persona ToolContext:

#stillathome #notanadultyet

Name: Peyton

Age: 24

Living with Mom at home

Motivations/Goals: Independence Freedom Apartment Bike to work Pay off college loan

Interests: Roller derby Raising money for breast cancer Jewelry making

Pains: Can’t seem to save At breakeven/loss each month Bad credit rating

Fears + Secrets: Afraid of getting rejected for an apartment Really likes mom’s support

Persona ToolContext:

Name:

Age:

Living:

Motivations/Goals:

Interests:

Pains:

Fears + Secrets:

Draw pic

Tribes/Hashtags

Value Proposition(s)

KEY PARTNERS

KEY ACTIVITIES

VALUE PROPOSITION

CUSTOMER RELATIONSHIPS

CUSTOMER SEGMENTS

KEY RESOURCES

CHANNELS

COST STRUCTURE

REVENUE STREAMS

STRATEGYZER + OSTERWALDER BUSINESS MODEL CANVAS

Product Market Fit

Value Proposition Silicon Valley / Tech Version

“Who do you want to create value for and what jobs need to be done?”

Value proposition(s) outline how exactly your products and services create value for one or more of your customer segments.

- Alexander Osterwalder, Value Proposition Design.

Madison Avenue / Branding

“A statement of the benefits delivered by the brand that provide value to the customer.

Communicates the benefits that add value, why we are different, the brand-customer relationship, and gives customers an “RTB” - reason to buy (or believe).

-David Aacker, Building Strong Brands.

Value PropositionMy company __(company name)______________

is developing _(defined offering)______________

to help __(a target audience)_________________

_(solve this problem / pain) __________________

(with this secret sauce)____________________

(with this proof point to the customer)_______

Lean ITP Value Prop Madlibs

Let’s Commercialize!Researchers use chemicals to manipulate the behavior of mice

with effects that last up to an hour…

to control the hunger and activity levels of mice

The Scientist, 2015.

http://www.the-scientist.com/?articles.view/articleNo/42878/title/Mouse-Mind-Control/

Value PropositionMy company __MINDTETHER_________________

is developing _a mind tether spray_____________

to help __busy moms_________________________

_compel their children to complete homework____

with our proprietary mind control chemicals____

effects last up to an hour with minor side effects!Lean ITP Value Prop Madlibs

For tomorrow

Present

What are your core hypotheses?

What tests did you run?

What do you believe will be true?

What did you find out?