SXSWi 2015 Value Proposition is Mud
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Your Value Proposition is Clear as Mud. Jacob Shin, VP of Marketing at Media Temple SXSW Interactive 2015 #MTSXSW #SXSW
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Transcript of SXSWi 2015 Value Proposition is Mud
Your Value Proposition
is Clear as Mud.Jacob Shin, VP of Marketing at Media Temple
SXSW Interactive 2015#MTSXSW
#SXSW
HelloJacob Shin / [email protected]
AgendaThe Elusive Value Proposition - Definition
Components of a Value Proposition
Company Benefits
Who Owns It
Does It Deliver?
Key Takeaways
My value proposition
Perspective
Framework
AgendaThe Elusive Value Proposition - Definition
Components of a Value Proposition
Company Benefits
Who Owns It
Does It Deliver?
Key Takeaways
Please invite me to your next
value proposition meeting.
A value proposition is not
a mission statement
Warby Parker was founded
with a rebellious spirit and a
lofty objective: to offer
designer eyewear at a
revolutionary price, while
leading the way for socially
conscious businesses.
Mission statement =
Why
a company
exists
A value proposition is not
a mission statement
a list of features
What value proposition is not
a mission statement
a list of featuresbashing the competition
A value proposition
answers
the WHY
To put it simply:
“A business or marketing statement
that summarizes why a consumer
should buy a product or use a
service (from your company!).”
(Source: Investopedia)
??
WHY give my money to ZipCar?
1. No long lines
2. Don’t pay for gas, insurance or parking
3. Similar experience at all Zipcar cities
WHY ZipCar?
1. No long lines
2. Don’t pay for gas, insurance or parking
3. Similar experience at all Zipcar cities
WHY Hertz?
1. No long lines
2. Points and perks are nice
WHY ZipCar?
1. Don’t pay for gas, insurance or parking
WHY Hertz?
1. Points and perks are nice
WHY Silvercar?
1. Premium features. (Cool factor)
AgendaThe Elusive Value Proposition - Definition
Components of a Value Proposition
Company Benefits
Who Owns It
Does It Deliver?
Key Takeaways
“What if we found ourselves
building something that
nobody wanted?
In that case what did it matter
if we did it on time and on
budget?”
- Eric Ries
We would be far better served if we
STOP to ask
WHO will buy
WHAT we build and
WHY ours over competitors
Are you certain people need it?
Building your value proposition
For the _______ (target customers)
Who need _______ (current alternatives)
We offer _______ (new product)
That provides _______ (key problem-solving capability)
And uniquely _______ (key differentiator)
WHO
WHAT
WHY
Credit to: Geoffrey Moore & Michael J. Skok
Questions answered by a
value proposition
WHO are the target buyers?
Macro vs. Micro
MACRO = Your brand’s
target audience
MICRO = Customer segmentation
by product/category
However, some companies
ARE their products or services
WHAT PROBLEM are you solving?
Questions answered by a
value proposition
WHO are the target buyers?
WHO: For the car enthusiast (target customers)
WHAT : Who need faster & better quality parts
(vs. the current alternative)
WHY are you better/unique?
Questions answered by a
value proposition
WHAT PROBLEM are you solving?
WHO are the target buyers?
Q: Why Silvercar?
A: Because it offers a single, premium, hassle-free option
Customer have many, many options
(including copy cats)
Getting
the WHY right
Matters
AgendaThe Elusive Value Proposition - Definition
Components of a Value Proposition
Company Benefits
Who Owns It
Does It Deliver?
Key Takeaways
Main internal benefit of a
value proposition = FOCUS
Main external benefit of a value
proposition = REVENUE
AgendaThe Elusive Value Proposition - Definition
Components of a Value Proposition
Company Benefits
Who Owns It
Does It Deliver?
Key Takeaways
Company maturity
It depends
Key stakeholders
Everyone is responsible
Why did you build it this way?
How can we justify the pricing?
Is it defensible?
PRODUCT & ENGINEERING
Do you know your core audience?
How will you market this product?
MARKETING TEAM
Does it convert?
How do you sell your products?
What are the customer pain points?
SALES TEAM
Does your solution address paint points?
Are you able to close?
(Coffee is for closers)
Did your NPS move with recent changes?
(Net Promoter Score = Promoters – Detractors)
CUSTOMER SERVICE
What about return/refund rate?
Huddle around your value prop
Credit: http://newforestsoccer.co.uk/
AgendaThe Elusive Value Proposition - Definition
Components of a Value Proposition
Company Benefits
Who Owns It
Does It Deliver?
Key Takeaways
Don’t Miss It
Homework (for all teams):
Answer the WHO
Answer the WHAT
Answer the WHY
Eric Smith. @esmith_images/Instagram.
Compare answers!
Tuning up your value prop:
Does it make sense to
customers?
Tuning up our WP value proposition
Initial value proposition
WHO: web designers, developers and client facing
businesses of many sizes
WHAT: customizable & managed WordPress
hosting and quality support
WHY: thoughtful, intuitive design, scalable & with
end-to-end support to meet the evolving
needs of customers
Next Generation of WordPress
Personal – WP value proposition
WHO: individual creative professional
(photographers, musicians, bloggers,
designers w/ portfolios)
WHAT: starter WordPress for mid-high volume
traffic
WHY: thoughtful, intuitive design, scalable & with
end-to-end support to meet the evolving
needs of customers
Agency – WP value proposition
WHO: large scale agencies with multiple
clients/projects
WHAT: worry-free WordPress with size/scale
WHY: thoughtful, managed hosting, developer-
happy features, with ample runway for growth
that lets you get back to managing your
clients and not servers
Outcome
Jan & Feb (single option)
vs
Mar 1-14 (4 options)
Net NEW WordPress Orders
Average Rev per Service (ARPS)
+14%
+15%
AgendaThe Elusive Value Proposition - Definition
Components of a Value Proposition
Company Benefits
Who Owns It
Does It Deliver?
Key Takeaways
Key takeaways
WHO – WHAT – WHY
TEAM EFFORT
FEEDBACK LOOPS & AUDITS
My value proposition
For the person involved with value
propositions
Who is unsatisfied with the current
articulation, process, management, etc.
You have a different
Perspective & Framework
to take to your teams to…
