Develop A Peak Performing Value Proposition For Your _____
A. Develop A B. Develop A Peak Performing Peak Performing Value Proposition Value Proposition For Your Startup For Your Sex Life
Develop A Peak Performing Value Proposition For Your Startup
8 out of 10 Startups fail in first 18 months
Forbes Top 3 Reasons for failure 1. Not in touch with customers deeply enough - VP 2. Failure to create & communicate a clear, concise & compelling Value - VP Proposition - VP 3. No real differentiation in the market
The survival & success of your startup depends on the quality of your VP
1. What is a Value Proposition (VP)?
Definition Value Proposition noun Collection of best reasons your target customers have for taking the action you’re asking for Peter Sandeen
How & Where To Use Your VP Internal Document Externally • Website content 3-5 of your best reasons your • Individual landing pages target customers have to take • Adverts action • Headlines • Elevator pitch • Tag line slogan • Presentations
What makes a strong VP Has these Answers these attributes questions • Is clear (isn’t vague or • What is it? cryptic) • Who is it for? • Is specific • What are the features & • Communicates concrete benefits? results • Why is it unique? • Communicates any • Why is it believable? meaningful differentiators • Avoids hype, jargon, superlatives • Is consistent
Who can use a VP? Business Personally • Thesis/dissertation •Whole organisation • Resume/Cover Sheet •Product groups • Linkedin profile •Products • Biog •Services • Dating sites •Job Roles •Actions
Your value proposition is a reflection of you/ your business
2. Why Weak VPs are Like Leaky Buckets
We get bombarded with Over 5000 sales messages everyday
This has caused us to develop powerful subconscious filters
This is why your message needs to cut through the clutter fast. (Typically around 7 seconds)
7 questions website visitors ask in 7 seconds 1. Do I understand what this website is about? 2. Do I think it’s relevant to me? 3. Do I think it’s valuable information? 4. Do I want this? 5. Do I trust the source 6. Whatever they are asking me to do, is the risk acceptable? 7. Is this worth me going ahead or should I put off for another time?
Bad “Clean” Home Page
Good “Clean” Home Page
Good “Clean” Home Page
Bad “Detailed” Home Page
Bad “Detailed” Home Page
Good “Detailed” Home Page
Clarity Compels Vagueness Repels
3. How To Know Exactly What Your Customers Want
Get an unfair advantage by going beyond the usual attributes like demographics.
Understand what important jobs your customers have to do
Jobs-To-Be-Done Customers buy products not because of the type of person they are but because they have a personal or work related job to do
Even a milkshake has a job?
3 Types of JTBD Social Emotional Functional •How a customer •How a customer •Getting a task wants to be wants to feel done or solving perceived by a problem others
Find The Related Pain Which negative outcomes does the customer want to avoid? E.g. Buying sneakers for gym •Functional: Sneakers falling apart after first run. Lose investment. •Social: Other gym members thinking I look stupid •Emotional: Feeling miserable, unfit and unhappy
Find The Related Gain Which positive outcomes does the customer want or desire? E.g. Buying sneakers for gym •Functional: Sneakers are durable. Save money long term. •Social: Other gym members thinking I look good •Emotional: Feeling fit, healthy & happy
Look at the job situations Hunger causes the job of needing to eat but has different situations •Eating in a rush – fast food joint •Eating out with kids – family friendly restaurant •On a date – somewhere to impress This helps you go beyond the usual attributes
Commit To Knowing Their Jobs & You Will Uncover The Magnetic Pull Of Their Needs
4. How To Stand Out, Get Noticed & Be The OBVIOUS Choice
Startups get ignored & fail because they develop solutions for jobs that don’t need to be done
Find the most important jobs
Exploit Your Competitors Weaknesses Focus on where you perform better and/or differentiate with gain creators & pain relievers
Laser focus to find the crucial ideas Draft 3-5 of the best ideas Each idea can be a few words or a few sentences. A claim, promise, description or statement.
5. How To Support Your VP By Making it Believable
If you are unknown, then by default people will doubt what you say
Strong Supporting Factors e.g. 6543 members already use and Be specific love_________ Avoid clichés & The most beautiful_______ generic hyperbole Explain how you create the Show how results you promise Story Tell relatable stories Remove the risk with (better Guarantee than) money-back guarantee Results in advance Free download, test drive, trial, sample.
Strong Supporting Factors Show them Video or webinar Show logos of publications you/ Features in… product featured in According to a study of 987 Study/facts patients… The more relatable to target Case study customer, the better expert or celebrity What others say endorsements Customer address specific goal, doubt or Testimonials objection
Now Create A Compelling VP Now Create A Compelling VP 3-5 of the best reasons your target • customers have for taking the action you’re asking for • Add strong supporting factors to make it believable
A Compelling VP = A Confident You
Tools & Resources for VP Creation
Interviewing customers. Resources •JobsToBeDone.org •ChristensenInstitute.org •Strategyn.com
Surveying customers Resources • SurveyMonkey.com • Google.com/Forms
Eavesdropping Target Audience Resources • Target customer forums • Target customer groups – Linkedin / Facebook • Reviews - Amazon
Great tool to eavesdrop Facebook Groups Postradamus.com
Strategyzer Value Proposition Canvas
Books Value Proposition Design Dr. Alexander Osterwalder Alan Smith Yves Pigneur Greg Bernarda Trish Papadakos
Books The Jobs-to-be-Done Handbook Chris Spiek Bob Moesta
TAKE AWAY
Take Away • VP = Collection of the best reasons your customers have for taking action with you • Can be used for Whole Organisation or parts of such as products, services, actions etc. • Be crystal clear if you don’t want to lose your prospects to your competitors • Go beyond demographics & look at the jobs your customers need to do
Take Away • Look at the functional, social & emotional pains & gain associated with their JTBD • Look at the context of the JTBD • Compare how you address pains & gains compared to your competitors • Map out the top 3-5 best ideas using VP canvas • Add supporting factors to make believable
If you develop a peak performing value proposition you are much more likely to follow in the footsteps of MIT Startup Masters.
Presentation Notes, Slides & Resources www.FindTheEdge.com/MIT-VP-16 kenny@findtheedge.com
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