This course explains how to determine your customer profile, so that you can create a value proposition and build a product they want
… and avoid losing time and money building something that doesn’t solve a problem.
In a nutshell, a value proposition is a clear statement that explains:
– how your product solves customers’ problems or improves their situation (relevancy)
– delivers specific benefits (quantified value)
– tells the ideal customer why they should buy from you and not from the competition (unique differentiation)It’s the primary reason a prospect should buy from you.
Value Proposition Design (written by Alexander Osterwalder, Yves Pigneur, Greg Bernada, Alan Smith). We provide the Amazon.com link in the further readings section.
The Customer Profile helps you know what drives the decisions of your customers. It is composed of 3 categories:
They are what the customers want to realize in their life, or in their work.
- A brilliant career
- A loving family
- Social respect
Customer Jobs can be:
– Functional: Your (potential) customers try to perform a specific task.
– Social: improve the way they are perceived by others.
– Emotional: Customers look for security, or love.
One good exercise to define your customer profile is to use Maslow’s Hierarchy of Needs, represented as a pyramid with the more basic needs at the bottom.
How is your product or service helping your customer meet his needs? Start from the bottom of the pyramid and go upwards.
The customer gains are the outcomes your target customers want to achieve, or the concrete benefits they are seeking.
Customer Gains can be:
– Required: Basic function (ex: a phone should be able to place calls!)
– Expected: Not basic, but we actually expect them as well (ex: we expect a mobile phone to be able to take decent pictures)
– Desired: What customers would like to have (ex: nice design for a phone)
– Unexpected: Gains that customers would not even think about
They are bad outcomes, risks and obstacles related to Customer Jobs.
Customer Pains can be:
– Obstacles: Things that prevent customers from even starting with a customer job
– Risks: Something that can go wrong and have negative consequences
1) Select a customer segment
2) Identify the customer jobs
3) Identify the customer pains
4) Identify the customer gains
5) Prioritize jobs, pains and gains.