First Things First: Getting Your Value Proposition Right

@benmumbycroft / @oneltd

1.  Define what we mean by the term “Value Proposition”

2.  Look at some templates for crafting a clear and compelling VP

3.  Get you apply these to your own business/startup/crazy idea etc.

4.  Explore how you can test your VP in the real-world

Tonight’s session

Enterprise Educator

Marketer

Today’s session

2 Parts

Part 1 = Articulating your value proposition

AKA Elevator Pitch, High Concept Pitch, USP, Positioning Statement etc.

00:01:00

Quick exercise: What’s your value proposition?

Value Proposition #1 = A promise of value to be delivered.

See wikipedia.com for full details

See typeform.com for full details

See typeform.com for full details

See typeform.com for full details

See typeform.com for full details

Add one more example here…

See typeform.com for full details

Add one more example here…

Internally It gives the team purpose and direction

Externally It forms the basis of how you market to and interact with customers

Your value proposition is the crunch point between business strategy and brand strategy

See peterjthomson.com for full details

Between What you make & Why people buy it

See peterjthomson.com for full details

In a world where everyone is after your business you must supply your customers with a compelling reason to buy you instead of your competitor.

Jack Trout

Value Proposition #2 = where your company’s product offer intersects with your customer’s desires

See peterjthomson.com for full details

Value to Customer of the Product/Service

Ability to Provide a Unique

Product/Service X

See guykawasaki.com for full details

Product offer

Customer?

Customer + Desire

Key VP elements What you do Who you do it for Why it’s different/compelling What the benefit is

Value Proposition TEMPLATES

GEOFF MOORE’S VALUE POSITIONING STATEMENT Part 1 Value of the Offering FOR… ___________________________________ (Target Customer)

WHO… __________________________________ (Statement of the Need)

OUR (PRODUCT NAME) IS… ________________ (Product/Service Category)

THAT… __________________________________ (Statement of Benefit)

Part 2 Positioning the Value UNLIKE… ________________________________ (Primary Competitive Alternative)

OUR PRODUCT/SERVICE… _________________ (Primary Differentiator)

BECAUSE OF OUR… _______________________ (Proof that Benefits can be Delivered)

See torgronsund.com for full details

GEOFF MOORE’S VALUE POSITIONING STATEMENT EXAMPLE Part 1 Value of the Offering FOR… non-technical marketers (Target Customer)

WHO… who struggle to find ROI in social media (Statement of the Need)

OUR (PRODUCT NAME) IS… a web-based analytics software (Product Category)

THAT… translates engagement metrics into actionable revenue metrics (Benefit)

Part 2 Positioning the Value UNLIKE… traditional specialist software (Primary Competitive Alternative)

OUR PRODUCT/SERVICE… is super simple and easy to use (Primary Differentiator)

BECAUSE OF OUR… commitment to Interface Design & UX (Proof Benefits Delivered)

See torgronsund.com for full details

VENTURE HACKS’ HIGH CONCEPT PITCH

[Proven industry example] for/of [new domain] Examples Google Analytics for Social Media Flickr for Video Uber for Hairdressers Bloomberg for Crowdfunding

See venturehacks.com/pitching for full details

STEVE BLANK’S XYZ

We help X do Y doing Z Example We help non-technical marketers discover return on investment in social media by turning engagement metrics into revenue metrics

See steveblank.com for full details

VLASKOVITS & COOPER’S CPS

Customer: ______________________________ (Who your customer is)

Problem: _____________________________ (What problem you’re solving for them)

Solution: ________________________________ (What your solution is)

Example We help non-technical marketers discover return on investment in social media by turning engagement metrics into revenue metrics

See custdev.com for full details

DAVE MCCLURE’S ELEVATOR RIDE •  Short, simple, memorable; what, how, why •  3 keywords or phrases •  No expert jargon Examples HubSpot is the easy way to turn social media engagement into revenue Mint.com is the free, easy way to manage your money online

See @DaveMcClure for full details

GUY KAWASAKI’S VAD APPROACH

[verb; application; differentiator] Examples Discover social media engagement and convert into revenue Share Powerpoint and Keynote slides including audio (Slideshare)

See guykawasaki.com for full details

Bonus Level

MARTY NEUMEIER’S ONLINESS STATEMENT The ONLY… _________________________________ (Product Category)

That… ______________________________________ (Differentiation)

For… ________________________________________ (Target Customer)

Who… _______________________________________ (Customer Desire/Need)

In… _________________________________________ (Target Market)

In an era of/when… ____________________________ (Trend)

See liquidagency.com/marty-books/ for full details

TThhee OONNLLYY…… motorcycle manufacturer

TThhaatt…… makes big, loud motorcycles

FFoorr…… macho guys (and macho “wannabees”)

WWhhoo…… want to join a gang of cowboys

IInn…… the United States (mostly)

IInn aann eerraa ooff…… decreasing personal freedom

Value Proposition YOUR TURN!

Geoff Moore’s VP Statement

Part 1 Value of the Offering FOR… __________________________________________________ WHO… _________________________________________________

(OUR PRODUCT/SERVICE NAME) IS________________________ THAT… _________________________________________________

Part 2 Positioning the Value UNLIKE… _______________________________________________ OUR PRODUCT/SERVICE… _________________________________

BECAUSE OF OUR… _______________________________________

(Target Customer)

(Statement of Need)

(Product/Service Category)

(Statement of Benefit)

(Primary Competitive Alternative)

(Key Differentiator)

(Proof Benefits Can Be Delivered)

GEOFF MOORE’S VALUE POSITIONING STATEMENT EXAMPLE Part 1 Value of the Offering FOR… non-technical marketers (Target Customer)

WHO… who struggle to find ROI in social media (Statement of the Need)

(OUR PRODUCT NAME) IS… a web-based analytics software (Product Category)

THAT… translates engagement metrics into actionable revenue metrics (Benefit)

Part 2 Positioning the Value UNLIKE… traditional specialist software (Primary Competitive Alternative)

OUR PRODUCT/SERVICE… is super simple and easy to use (Primary Differentiator)

BECAUSE OF OUR… commitment to Interface Design & UX (Proof Benefits Delivered)

See torgronsund.com for full details

1. Keep it short 2 sentences max

2. Keep it simple no

complicated business jargon

3. Be bold & specific not bland and generic

TOP TIPS

AAnndd rreemmeemmbbeerr:: The Pub Test

Part 2 = Getting it right

TEMPLATES

Your customers are the judge, jury and executioner of your value proposition!

IInnttrroodduucciinngg Steve Blank

Concept Dev Testing Launch Customer

Concept Dev Testing Launch Customer

II’’mm ssoorrrryy,, wwhhyy ddoo II nneeeedd tthhiiss

aaggaaiinn??

customer

Customer Discovery

Customer Validation

PPrroobblleemm SSoolluuttiioonn ffiitt PPrroobblleemm

MMaarrkkeett ffiitt

Customer Discovery

Customer Validation

PPrroobblleemm SSoolluuttiioonn ffiitt

PPrroobblleemm MMaarrkkeett ffiitt

This is awesome!

customer

IInnttrroodduucciinngg Alexander Osterwalder

Value Proposition #3 = A description of the benefits customers can expect from your products & services

See businessmodelgeneration.com for full details

TEMPLATES

The Business Model Canvas Helps you create value for your business The Value Proposition Canvas Helps you create value for your customer

See businessmodelgeneration.com for full details

1. CUSTOMER PROFILE

2. VALUE MAP

See businessmodelgeneration.com for full details

GGaaiinnss describe the outcomes customers want to achieve or the concrete benefits they are

seeking

CCuussttoommeerr JJoobbss describe what customers are trying to get done in their work and their lives, as expressed in their own words

PPaaiinnss describe bad outcomes. Risks, and obstacles related to

customer jobs

See businessmodelgeneration.com for full details

GGaaiinn CCrreeaattoorrss describe how your products and services create

customer gains

PPaaiinn RReelliieevveerrss describe how your products and services alleviate customer pains

This is a list of all the PPrroodduuccttss aanndd SSeerrvviicceess a value proposition is

built around

See businessmodelgeneration.com for full details

The set of value proposition benefits you design to attract

customers

The set of customer characteristics that you

assume, observe, and verify in the market

See businessmodelgeneration.com for full details

Testing is key!

Business people are looking for methods to help

them design better value propositions

Launch a Google Adwords campaign around the

search term “value proposition”

How the campaign performs in terms of clicks

We can achieve a click-through-rate (CTR) of at least

2%

1. Extract Hypotheses

2. Prioritise Hypotheses

3. Design Tests

THE TESTING PROCESS

See businessmodelgeneration.com for full details

4. Prioritise Tests

5. Run Tests 6. Capture Learnings

THE TESTING PROCESS

See businessmodelgeneration.com for full details

7. Make Progress (One foothold at a time)

1. Capture your Value Proposition hypothesis (use one of the templates

provided)

2. Use the Value Proposition canvas to ‘dig deeper’ and work out if you have

a fit

3. List and prioritise key value assumptions

4. Design simple tests and learn by

doing

4-key steps

www.oneltd.co.uk @OneLtd

Agency to Rule Them All !

We are the ONLY______________________________

That _____________________________________________

For ______________________________________________

Who _____________________________________________

In _______________________________________________

In an era when __________________________________

Marty Neumeier’s Onliness Statement

(Product Category)

(Primary Differentiation)

(Target Customer)

(Customer Desire/Need)

(Target Market)

(Background Trend)