The Lean LaunchPad · 2021. 1. 11. · The Lean LaunchPad Value Proposition, Customer Segments &...
Transcript of The Lean LaunchPad · 2021. 1. 11. · The Lean LaunchPad Value Proposition, Customer Segments &...
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The Lean LaunchPad
Value Proposition, Customer Segments & MVPs
Steve Blank
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Value Proposition/Customer Segments
Product/Market Fit
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Business model & value proposition
Source: Alexander Osterwalder
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Source: Alexander Osterwalder
Product / Market Fit
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customer jobs
what customers are trying to get done in their work and in their lives
task to perform, problem to solve, needs to satisfy
Source: Alexander Osterwalder
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customer pains
describe bad outcomes, risks, and obstacles related to customer jobs
Source: Alexander Osterwalder
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customer gains
describe the benefits customers are seeking
Source: Alexander Osterwalder
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describes the benefits customers can expect from a your products & services
A VALUE PROPOSITION …
Source: Alexander Osterwalder
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products & services
A list of all the products and
services a value proposition is built
around
Source: Alexander Osterwalder
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pain relievershow your products and
services alleviate customer pains – by
reducing or eliminating: wasted time, costs,
negative emotions, risks - during and after getting
the job done
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Pain Reliever– Problem or Need?• Are you solving a Problem?
– It gets a job done:• accounting software, elevators, air-conditioning, electricity, tablet
computers, electric toothbrushes, airplanes, email software, etc.
• Are you fulfilling a Need?– It fulfills a fundamental human social need:
• friendship, dating, sex, entertainment, art, communication, confession, gambling, religion, etc.
• For whom?
• How do you know?
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Pain Reliever Ranking
• Rank each pain your products and services kill according to their intensity for the customer• Is it nice to have or got to have?
• For each pain indicate the frequency at which it occurs• Is it intense and frequent enough to be a business?
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gain creators
describe how your products/services create
customer gains. the customer expects, desires
or is surprised by, functional utility, social
gains, positive emotions, and cost savings?
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Gain Creator- Ranking
• Rank each gain your products and services create according to its relevance to the customer.
• Is it substantial or insignificant?• For each gain indicate the frequency at which it occurs.
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Discussion
• Are we a “pain” or “gain” and does the level of pain/gain get customers VERY excited?
• REMEMBER: you’re focusing on “problem!!!”• Are we proving our current Value Proposition? • Need to make it stronger, more unique? How?• Any feedback telling us it’s not so exciting?• Ideas on how to make the Value Prop stronger?• What else do we need to do to be sure?
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Goal of the Value Proposition = MVP
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Value Proposition – Common Mistakes
• It’s too big or amorphous• Value Proposition includes competitive set• “It’s just a feature” of someone else’s product• It’s a “nice to have” instead of a “got to have”• Not enough customers care• The best piece of advice Airbnb founder Brian Chesky
ever got was to build something that 100 people love rather than 1 million people kind of like (from Paul Graham)
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Key Questions for Value Propositions
1. Problem Statement: What is the problem?
2. Target customers: For whom is this relevant?
3. Competition: What do customers do today?
4. Technology / Market Insight: Why is the problem so hard to solve?
5. Timing: Why now?
6. Market Size: How big is this problem?
7. Product: How do you do it?
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EXAMPLE: Key Value Prop Questions
1. Problem Statement: Network security without a CTO
2. Target customers: Small banks
3. Competition: Expensive, Custom or DIY
4. Technology / Market Insight: Small Companies without Big Resources…Fines getting bigger
5. Timing: FDIC pressure
6. Market Size: 9,000 little banks, 5,000 + more
7. Product: perimeterusa.net
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MVPs and Experiments
Steve Blankwww.steveblank.com
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What
map hypotheses Business Model Canvas
How
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What
map mission hypotheses Mission Model Canvas
How
Customer Development & Agile EngineeringValidate hypotheses
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What
map mission hypotheses Mission Model Canvas
How
Validate hypotheses Customer Development & Agile Engineering
map value proposition Value Proposition Canvas
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What
map mission hypotheses Mission Model Canvas
How
Validate hypotheses Customer Development & Agile Engineering
map value proposition Value Proposition Canvas
test ideas Experiments with MVPs
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Discovery Experiments
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Validation Experiments
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MVP Plan
• Go from Low Fidelity to High Fidelity– cheap and fast early on– Increase the strength of evidence with multiple
experiments for the same hypothesis• Pick the experiment that produces the strongest
evidence given your constraints • Reduce uncertainty as much as you can before
you build anything
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Steps to Properly Using MVPs
1. Identify what you want to learn
2. Decide what visual aids will help you learn it
3. Design an experiment
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1. Identify what you want to learn
Always test one aspect of BMC- Are busy moms my customer?- Is advertising my best channel?- Should I generate revenue
using a freemium model?- Do businesses care about my
value prop to save time?
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1. Identify what you want to learn
Always test one aspect of BMC- Are busy moms my customer?- Is advertising my best channel?- Should I generate revenue
using a freemium model?- Do businesses care about my
value prop to save time?
These might be hard to learn through
interviews (words), but much easier to
learn through actions.
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2. Decide what visual aids will help you learn
Physical (paper, plastic, hardware)
Digital (landing page, mockup, ad)
Intention to purchase
Ability to use
Customer satisfaction+
Pick a medium that helps you see specific behaviors
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3. Design an experiment• What hypotheses do we want to prove / disprove?
• For each hypothesis, what quantifiable result indicates success? i.e. your pass/fail metrics
• Who are the target participants of this experiment?• How many participants do we need?
• How are we going to get them?
• How do we run the experiment?• How long does the experiment run for?
• Are there other qualitative things to learn during this experiment?
Source: Testing With Humans, pages 39-45
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4. Go Broad, Then Go Deep
• Test lots of markets/segments first (90 day plan)
• Then go deep into one market (next 90 plan)
• Then if that market isn’t right pop back up and pick
another deep search
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10 Examples of MVP Types
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1. Landing Pages
Createasimplewebpageorwebsitethatexpressesyourvaluepropositionandgivesthevisitortheabilitytoexpresstheirinterestwith
somesortofcalltoaction.
Types of MVPs
Source:TestingWithHumans,pages35-36and78-90
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2. Advertising
Advertiseyourvaluepropositiontoarelevantaudiencetoseewhetherpeoplerespond.
Types of MVPs
Source:TestingWithHumans,pages35-36and78-90
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3. Promotional Material
Produceonlineorofflinepromotionalmaterialtotestreactionsorgeneratedemand;avariationof
anadvertisingtest.
Types of MVPs
Source:TestingWithHumans,pages35-36and78-90
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4. Pre-Selling
Bookorders,andpossiblycollectcashpayment,beforeyouhavebuilttheproduct.Includescrowd-
funding
Types of MVPs
Source:TestingWithHumans,pages35-36and78-90
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5. Paper Testing
Mockupanexampleofanapplicationuserinterfaceorreportandputitinfrontofapotentialcustomer.
Types of MVPs
Source:TestingWithHumans,pages35-36and78-90
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6. Product Prototype
Aworkingversionofyourproductorexperiencethatisbuiltforlearningandfastiteration,rather
thanforrobustnessorscale.
Types of MVPs
Source:TestingWithHumans,pages35-36and78-90
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7. Wizard of Oz
Providetheserviceinamanualway,hiddenbehindthescenes(hencethename),wherethecustomerthinkstheyareinterfacingwithareal
product(orfeature).
Types of MVPs
Source:TestingWithHumans,pages35-36and78-90
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8. Concierge
Manually,andovertly,actastheproductyoueventuallywanttobuild(unlikeaWizardofOz
wherepeoplearebehindthescenes).
Types of MVPs
Source:TestingWithHumans,pages35-36and78-90
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9. Pilot
Putanearlyversionofyourproductinthehandsofyourcustomers,butyouscaledownthesizeoftheimplementationandputafinitetimeperiodon
theproject.
Types of MVPs
Source:TestingWithHumans,pages35-36and78-90
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10. Usability
Checktoseeifsomeonecaneffectivelyuseaproductwithoutgettingstuckorblocked.
Types of MVPs
Source:TestingWithHumans,pages35-36and78-90
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Extra Credit – Read Testing Business IdeasBy Alexander Osterwalder