Develop A Peak Performing Value Proposition For Your _____ A. - - PowerPoint PPT Presentation

Develop A Peak Performing Value Proposition For Your _____

• A. Develop A

Peak Performing Value Proposition For Your Startup

• B. Develop A

Peak Performing Value Proposition 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

• 2. Failure to create & communicate a

clear, concise & compelling Value Proposition

• 3. No real differentiation in the market
• VP
• VP
• VP

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

Internal Document Externally

3-5 of your best reasons your target customers have to take action

• Website content
• Individual landing pages
• Adverts
• Headlines
• Elevator pitch
• Tag line slogan
• Presentations

How & Where To Use Your VP

What makes a strong VP

Answers these questions Has these attributes

• What is it?
• Who is it for?
• What are the features &

benefits?

• Why is it unique?
• Why is it believable?
• Is clear (isn’t vague or

cryptic)

• Is specific
• Communicates concrete


results

• Communicates any


meaningful differentiators

• Avoids hype, jargon,

superlatives

• Is consistent

Who can use a VP?

Business Personally

• Whole organisation
• Product groups
• Products
• Services
• Job Roles
• Actions
• Thesis/dissertation
• Resume/Cover Sheet
• Linkedin profile
• Biog
• Dating sites

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

Customers buy products
 not because of the type


• f person they are


but because they have
 a personal or work related
 job to do

Jobs-To-Be-Done

Even a milkshake has a job?

3 Types of JTBD

Functional

• Getting a task

done or solving a problem

Social

• How a customer

wants to be perceived by

• thers

Emotional

• How a customer

wants to feel

Which negative outcomes does the
 customer want to avoid?

• 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 Pain

E.g. Buying sneakers for gym

Which positive outcomes does
 the customer want or desire?

• Functional: Sneakers are durable. Save money

long term.

• Social: Other gym members thinking I look good
• Emotional: Feeling fit, healthy & happy

Find The Related Gain

E.g. Buying sneakers for gym

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

Look at the job situations

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

Focus on where you perform better and/or differentiate with gain creators & pain relievers

Exploit Your Competitors Weaknesses

Laser focus to find
 the crucial ideas

Draft 3-5 of the best ideas Each idea can be a few words


• r a few sentences.

A claim, promise, description


• r statement.

• 5. How To Support Your VP


By Making it Believable

If you are unknown,
 then by default people
 will doubt what you say

Be specific

e.g. 6543 members already use and love_________

Avoid clichés & generic hyperbole

The most beautiful_______ Show how Explain how you create the results you promise Story Tell relatable stories Guarantee Remove the risk with (better than) money-back guarantee Results in advance Free download, test drive, trial, sample.

Strong Supporting Factors

Show them Video or webinar Features in… Show logos of publications you/ product featured in Study/facts According to a study of 987 patients… Case study The more relatable to target customer, the better What others say expert or celebrity endorsements Customer Testimonials address specific goal, doubt or

• bjection

Strong Supporting Factors

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

Now Create A Compelling VP

A Compelling VP = A Confident You

Tools & Resources
 for VP Creation

• JobsToBeDone.org
• ChristensenInstitute.org
• Strategyn.com

Resources

Interviewing customers.

• SurveyMonkey.com
• Google.com/Forms

Resources

Surveying customers

• Target customer forums
• Target customer groups – Linkedin/Facebook
• Reviews - Amazon

Resources

Eavesdropping Target Audience

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

• 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

Take Away

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