Customer Zoom: Value Stream Discovery and Market Segmentation

value stream discovery and market segmentation

Wayra, Lima, Peru

March 1st, 2017

@brantcooper

@movestheneedle

digital is transforming the

world…

competition is everywhere…

customers are more agile than we

are…

our organizational systems and

structures are based upon the industrial age

ENTREPRENEURIAL SPIRIT

SEARCHEXECUTEOn the known In the unknown

Measure tasks Measure impact

Continuous Improvement Reinvention

© Moves the Needle All rights reserved

WHAT IS LEAN?

LEAN: Reduction of waste in producing known value (Customer, problem, solution known)

LEAN STARTUP: Reduction of waste in discovering new value (Customer, problem, solution unknown)


3 E’s OF LEAN INNOVATION

E

Understanding our customers deeply; their pains, passions and

desires. Developing insights.

EMPATHY

E

Translating insights into action. Reducing risks through

assumption testing.

EXPERIMENTATION

E

Making decisions quickly based on insights and actual customer

behavior.

EVIDENCE

LEAN INNOVATION IN PRACTICE



EMPATHY

What are different ways you can gain customer empathy – to experience and understand the world from your

customer’s perspective?


EXPERIMENTS “IN THE WILD”

experiment examples


GOAL OF EXPERIMENTATION: EVIDENCE (DATA + INSIGHTS)

DATA INSIGHTS+actual results why? why? why?

2/100 tried to give me their credit card we didn’t meet high customer expectations

9/10 provided company email address they saw we could get the job done

20/50 clicked on buy now button we think we discovered our ideal customer


hypothesis If we do X, Y% of people will behave in way Z.

X = Business Activity (minimum viable) Y% = Target Metric Z = Customers’ Behavior


FINDING YOUR MARKET

• Have the same problem • Speak the same “language” • Hang out together • Situations not demographics


CUSTOMER ZOOM EXAMPLE

unique attributeslikes urban

environmentstravels for

workKind of a

hipster

goes to locals hangouts

Seeks experiences

Reads Lonely Planet books

Freddie Castle

behaviors

zoom

What’s his work environment like? Does he use online collaboration tools? Does he use offline tools?

How does he look for new tools?Always the guy to setup hangout and slack. How does he cope with the pain?

Picture NameJob Title (if applicable)


Has great travel

experiencesmore fulfilled

saves $ on vacations

Doesn’t know how to find

places he trusts

Must feel safe

Vacation rentals hard to get; don’t fit schedule.

quality and comfort

great travel experience

PROBLEM ZOOM EXAMPLE

desired outcomes

pains & problems

zoom

How will solving problem affect the life of customer?Is there a significant time or cost impact? Is there a bigger emotional or aspirational win?

What stops the customer from behaving differently now? What obstacles need to be overcome? What are limitations of workaround?

We promise “______” We hope the outcome will be “______”


Ability to browse

pictures of room

Ability to reserve room

Ability to get access

to room

Web Platform

Money transaction

engine

“Market place”

technology

Pictures of air

mattresses in

apartment

Be able to browse photos and look up

hosts on social media.

SOLUTION ZOOM EXAMPLE

top functionality

by what means?

zoom

What MUST be built to fulfill the promise you’re making to your ideal customer?

What backend, technology, platforms, means of distribution must be already in place or put into place to deliver functionality?

What do you believe is the minimum you can offer, for which the customer will be willing to pay? What specifically must they do the first time they attempt to achieve value you’re promising?

VALUE STREAM DISCOVERY

PASSIONATESATISFIEDHOPEFULCONVINCEDTRUSTINGINTRIGUEDAWARE

AWARE

Business activity: • Airbnb: Hack Craigslist vacation rental ads looking

for business travelers who want a “locals” travel experience.

Customer Behavior • Click on Craigslist ad; browse listing Metric: • Listings browsed by source

VALUE STREAM DISCOVERY AWARE

INTRIGUED

Business activities: • AirBNB: Inexpensive rooms. Have “local’s

experience.” • “Stay with a local when traveling.”

Customer Behavior • Browse FAQ or About Us Metric: • Specific web page by source. (Craigslist)

VALUE STREAM INTRIGUED


airbnb A trusted community marketplace for people to list, discover, and book unique accommodations around the world.

TRUSTING

Business activities: • Airbnb: Read article about AirBnB • Read FAQ • Read listing reviews Customer Behavior • Click on Request to Book • Fills out account application • Supplies credit car info Metric: • Fill out application by funnel path.

VALUE STREAM TRUSTING

CONVINCED

Business activities: • Airbnb: Safety guarantees • MTN: Proposal

Customer Behavior • Reserves room Metric: • Revenue by funnel path.


HOPEFUL

Business activities: • Airbnb: Facilitate (urge) communication

between host and guest.

Customer Behavior • contacts host (guest) Metric: • Measure communications between host and

guest.


SATISFIED

Business activities: • Build MVP: Minimum functionality required to

fulfill utility promise. • 1 page web site; air mattresses; fresh towels;

breakfast

Metric: • Guest stays multiple nights • Customer comes back and rents again • Customer rents 3 night every 6 months


PASSIONATE

Business activities: • Messaging/Branding • Customer has “locals” experience

Customer Behavior • Invites friends • Fills out review • Participates in online community • Shares photos on social media Metric: • Viral coefficient




Innovation • Don’t know what value to create • Don’t know for whom • Don’t know how to execute

Hypothesize • Customer Behavior • Business Activity • How to measure

VALUE STREAM DASHBOARD


150 15 5 3 3 2 1metricbehavior Landing Page Download Req proposal Sign contract Do pre-work Sign up again Referral

activity Keynotes Content mktg

LinkedIn Webinar Referrals

Sales email Sales call Reference Collateral

Send proposal Negotiation Onsite visit

Kickoff call Pre-work doc High touch

Impact bootcamp Accelerator

Impact Co-create case study

Lead Magnet Tools

Case Studies

Let’s Get Started!

ALL THE FISH


CUSTOMER ZOOM EXAMPLE

unique attributeslikes urban

environmentstravels for

workKind of a

hipster

goes to locals hangouts

Seeks experiences

Reads Lonely Planet books

Freddie Castle

behaviors

zoom

What’s his work environment like? Does he use online collaboration tools? Does he use offline tools?

How does he look for new tools?Always the guy to setup hangout and slack. How does he cope with the pain?

Picture NameJob Title (if applicable)

THANK YOU!www.MovesTheNeedle.com

@brantcooper @movestheneedle

Customer Zoom: Value Stream Discovery and Market Segmentation

Small Business & Entrepreneurship

Transcript of Customer Zoom: Value Stream Discovery and Market Segmentation