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Why Does Your Customer Buy from You? The Value Proposition Design

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Why Does Your Customer Buy from You? The Value Proposition Design

  1. 1. Why Does Your Customer Buy from You? The Value Proposition Design Ed Mayuga – January 25, 2017
  2. 2. You are marketing and business development professionals from architectural, engineering, planning firms
  3. 3. When was the last time you took a systematic look at how you customers experience your product or service?
  4. 4. Visually illustrates data you want to analyze
  5. 5. A basic understanding of the Value Proposition Design
  6. 6. Think about why your customers buy from you
  7. 7. What is Value Proposition Design?
  8. 8. A tool that will help you design, test, build, and manage great customer value propositions
  9. 9. The Customer Segment who you intend to create value for
  10. 10. The map shows the FIT between what you offer, and what the customers want
  11. 11. The Customer Segment Profile explains their characteristics and desired outcomes and benefits
  12. 12. Some outcomes and benefits may be more relevant to customers
  13. 13. If you don’t have a fit, you need to change your approach
  14. 14. The Circle contains Customer Characteristics of What You Can OBSERVE in the Market
  15. 15. Customer Jobs – Tasks to complete, problems to solve, needs to satisfy
  16. 16. Pains – Anything that annoys your customers before, during, or after getting a job done
  17. 17. Gains – outcomes your customers require, expect, desire, or would be surprised by
  18. 18. The Square – The Features of What you Market and Sell
  19. 19. How do you DESIGN the Features and Benefits of your Products or Services?
  20. 20. What you communicate to your customers is summarized in your Value Proposition
  21. 21. It is the bundle of products and services that help your customer get a job done
  22. 22. Allows to you address your customer’s Pains and Gains
  23. 23. Let’s take a deeper look at Pain Relievers
  24. 24. Ask yourself: How do your products or services alleviate customer pains?
  25. 25. Expand your thinking to before, while, and after a customer is attempting to get a job done
  26. 26. Can you accurately say which Pains the Value Proposition is addressing by eliminating or reducing them?
  27. 27. Now let’s look at the Gain Creators
  28. 28. What are the positive benefits your products and services create for your customers?
  29. 29. Are you clearly communicating the Gains that your Value Proposition is addressing?
  30. 30. Customers will buy more the better you are at communicating positive outcomes
  31. 31. Gain Creators
  32. 32. The Problem-Solution Fit
  33. 33. When Features perfectly match the characteristics of your customer segment profiles
  34. 34. Product-Market Fit - When the market validates and you have traction with your customers
  35. 35. There does not have to be an absolute 1-to-1 correlation, but they need to closely match
  36. 36. Pain Relievers are Features Gain Creators are Benefits
  37. 37. Traditional Feature/Benefit selling is “Because of… You can…”
  38. 38. Are there Pain Relievers that you can use as Features for your sales pitch?
  39. 39. Are there Gain Creators you can use as Benefits?
  40. 40. Successful businesses have more than just a great Value Proposition
  41. 41. Successful businesses also have a great Business Model that makes a Value Proposition possible!
  42. 42. You need to periodically test your assumptions using the Value Proposition Design map
  43. 43. Remember: There are no facts inside the four walls of your office!
  44. 44. Your Value Proposition should be communicated on your website, social media, marketing and sales materials