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Building Value for the Customers
- 1. BUILDING VALUE FOR CUSTOMERS Is itCinderella’s shoe, is Cinderella your customer? Presenter: Tarun Gaur CEO, tringapps, Inc.
- 2. Some definitions! Let’s setthe context …
- 3. The Product … isa collection of features!
- 4. Customers Buy the productsyou design!
- 5. The Market A groupingof customers!
- 6. The Market Is aset of actual or potential customers, For a given set of products and services, Who have common needs or wants, Who reference each other while making buying decisions.
- 7. THE BUSINESS Business isthe product, product the business! Your startup is a business, treat it like one rather than “earn money quickly” trick!
- 8. Research and Development Technologyresearch and business analysis are two main stays of modern R&D, innovations happen when teams analyze, research and develop
- 9. Product Design Most establishedcompanies have Product Design groups per product, they are responsible for product experience
- 10. Product Engineering Product teamproposes, Engineering team disposes. In most established companies, product and engineering teams are parallel orgs
- 11. Product Marketing They aretasked with doing things to capture market shares. They exploit every channel to get the word out. Their efforts result in sales picking up!
- 12. Product Sales They aretasked with selling the product directly, they work with quotas, targets and reach out to the customer to sell the product. If sales is easy, the marketing team is helping them, if not - there is a problem with the product or product marketing
- 13. Product Support How mayI help you ma’am? err … sir?
- 14. Finance Every business requiresmoney, it’s a no-brainer. Rag tag units that don’t have funds fizzle out
- 15. Relationship Management We callit the CRM, customer relationship management. It’s different from Product Support. Good support, results in good relationships
- 16. Recommendation Understanding these businessroles is crucial, like a minimum viable product, these roles represent a minimum viable business! Create a spreadsheet to list down activities under each bucket
- 17. STARTUP AS ABUSINESS Entrepreneurs have to wear multiple hats!
- 18. Thought Leaders Most productrequirements will come from the thought leaders - by invention or discovery
- 19. Action Leaders Action leadersare good at inspiring their teams, they roll up their cuffs and participate in the development exercise, Thought leader and Action leader should not be the same person
- 20. The Believers Every businessrequires money, it’s a no-brainer. Rag tag units that don’t have funds fizzle out
- 21. Voice of Customer Everybusiness requires money, it’s a no-brainer. Rag tag units that don’t have funds fizzle out
- 22. Recommendation Someone in theteam needs to think like a customer, without this role, your startup will fail, for sure! Create a process for other roles
- 23. THE CUSTOMER Understanding consumerbehavior helps you build better products, and refine your message
- 24. The customer behavior Understandingyour customer is what stands between your product and the market share
- 25. Purchasing Power Classify yourcustomers based on their purchasing power, establish personas early on. Free Loader, Rationalist, and The King!
- 26. The Demographics Another wayto classify customers, seldom a 20 year old has the same needs and wants as a 60 year old.
- 27. The Gender Men arefrom Mars, Women from Venus. Understanding how their needs and wants vary may help you build better value for them
- 28. The Location Urban consumersthink differently than Rural Consumers, their needs and wants are generally different
- 29. The Culture Generally optional,but can give you amazing insights into purchasing behaviors of customers
- 30. Recommendation Develop personas andvalidate your features based your understanding of your customer profiles; then go and verify your findings via surveys
- 31. CUSTOMER PSYCHE Understanding thecustomer psychographic profile helps you carve out different strategies for different type of customers!
- 32. Innovators The technology enthusiasts;they love technology for it’s own sake
- 33. Early Adopters They havethe insight to match an emerging technology to a strategic business opportunity and ability to evangelize it within their organizations
- 34. Early Majority The Pragmatists;are the hardest to sell to, they don’t buy into revolutions, they want incremental improvements and don’t take risks like early adopters
- 35. Late Majority For everypragmatist, there is a conservative. They represent one-third of the market but are rarely developed as tech community thinks they are stupid and slow
- 36. Laggards Skeptics; do notparticipate in the tech marketplace, except to block purchases. Skeptics don’t buy or act. We should know how to make use of that
- 37. Recommendation Focus on Innovatorsand Early Adopters first, and then pivot to Early Majority but have a customer acquisition strategy for early majority in place from the start as it is difficult to judge the inflection point at times
- 38. SALESFORCE: AN EXAMPLE Softwareas a service
- 39. There is abetter way Marc Benioff screams continuously, software as a service will spell doom for packaged software
- 40. The backlash SaaS modelis inherently insecure and only a fool will put enterprise data “in the cloud”
- 41. The last laugh Salesforceis one of the fastest growing software companies in the world, with revenues touching $4Billion; packaged software is on it’s way out
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- 43. Go to theworker bee Target salespeople and their managers instead of customer service and marketing teams
- 44. The big smallcompany Go to mid-market companies; big enough to need systems to compete with the industry leaders in their category, small enough to be unable to afford the IT investments required
- 45. The big smallcompany Go to mid-market companies; big enough to need systems to compete with the industry leaders in their category, small enough to be unable to afford the IT investments required
- 46. The Culture Focus onUnited States only, in part to stay close to the customer, in part because United States has always been the early-adopting country in enterprise software
- 47. The Verticals They focussedon technology-savvy industries, beginning with high tech itself, them moving into telco, pharma and finally financial services
- 48. THE CLAIM Passing theelevator test
- 49. Down to twoshort sentences: The claim • For (target customers - beachhead segment) • Who are not satisfied with (the market alternative) • Our product is a (product category) • That provides (compelling reason to buy) • Unlike (the product alternative) • Quantify the results (brings immense value)
- 50. Salesforce Elevator Pitch •Our product is FOR mid-market tech savvy companies • WHO can’t maintain relationships with customers effectively like fortune 500 companies • Salesforce is an online CRM suite • THAT reduces costs, maintains data integrity and has feature parity with cumbersome competitors • UNLIKE Microsoft Dynamics that is a hassle to deploy, customize and integrate • Provides higher SLAs than enterprise software
- 51. Delivering Value Once thestrategy is in place, the ACTION leaders have to implement the strategy by pushing the team to deliver. Customer centric approach becomes crucial.
- 52. BUILDING VALUE INYOUR STARTUP Step by Step Approach
- 53. Customer Profiles Value Maps Who isit for? What does it do?
- 54. Startup Failure 90% startupsfail because of their failure to identify the value propositions for the customers therefore their business models are flawed. The customers are very smart, if they can’t derive value, they will not come.
- 55. Customer Profiles Who is itfor? What does it do? Value Maps Business Model How to sell it?
- 56. STEP 1 Identify CustomerProfiles
- 57. Customer Profiles Help youunderstand your customers better … and there is a very simple and established method to do just that.
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- 59. Customer Jobs describe whatcustomers are trying to get done in their work and in their lives, as expressed in their own words. It could be the task they are trying to complete, the problem they are trying to solve, or the needs they are trying to satisfy
- 60. Customer Jobs • Functional •Social • Personal • Support
- 61. Isn’t it thesame? Did you notice how Product Manager’s world is similar to Business Analyst or Software Architect? Customer Jobs result in Scenarios and Use Cases. If Customer Jobs are well defined, the requirements document is robust.
- 62. It’s not thesame! Use Cases and Scenarios intend to set boundary to the system and help you define the scope of the software whereas Customer Jobs help you validate if features make business sense or not.
- 63. Jobs have acontext Customer Jobs depend on the context in which they are performed. A context may impose certain constraints or limitations.
- 64. A Example Create aUser Interface for someone who is flying a plane or someone who is driving a car!
- 65. STEP 3 Sort CustomerJobs based on their importance
- 66. Job Importance All thingsthat customers do may not have the same importance for them. Some matter more than others
- 67. Job Frequency Some jobsare done more often than others, even though they are small but they may carry more importance in the psyche of the customer
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- 69. Customer Pains describe badoutcomes, risks, and obstacles related to customer jobs.
- 70. Ask a lotof questions! Let’s give them a name: trigger questions. Customer pains can be identified easily if you ask a lot of trigger questions around empathy maps
- 71. Trigger Questions • Howdo your customers define too costly? • What makes your customers feel bad? • What challenges do they encounter? • Are they afraid of losing face? • What common mistakes do they make? • What is keeping them awake at night?
- 72. Make the painsconcrete When the customer says “waiting in line was a waste of time”, ask the customer after how many minutes exactly it began to feel like wasted time. That way you can note “wasting more than x minutes standing in the line” was a pain.
- 73. STEP 5 Map thePains to Customer Jobs
- 74. Customer Jobs and CustomerPains Map each pain point to a customer job or a set of jobs. It will help you get a clear idea of how the customer jobs can help resolve the pain points and thereby provide value to the customers.
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- 76. Customer Gains describe theoutcomes and benefits your customers want. Some gains are required, expected, or desired by the customers, and some would surprise them.
- 77. Why bother aboutgains? Your customers achieve functional utility, social gains, positive emotions, or cost savings
- 78. Gain Types • RequiredGains • Expected Gains • Desired Gains • Unexpected Gains
- 79. Apple Example • RequiredGain: Can I make a phone call? • Expected Gain: Apple phones are well designed • Desired Gain: Apple phone integrates with my MacBook • Unexpected Gain: The force touch (for upcoming models)
- 80. Difference: Pain andGain Pains are negative, gains are positive! Customer frustrations and rants give you pains, delight gives you gain
- 81. Surveys are important Wheneveryou engage your potential customers on pains, always end with a positive question: What would make this pain go away? … and you will most definitely identify the gain.
- 82. STEP 7 Rank CustomerJobs, Pains and Gains
- 83. Ranking is thekey Ranking jobs, pains and gains is essential in order to design value propositions that address things that customers really care about.
- 84. How to rank? •Ranking Jobs: From Important to Insignificant • Ranking Pains: From Extreme to Moderate • Ranking Gains: From Essential to Nice to Have
- 85. STEP 8 Validate therankings of customer jobs, pains and gains
- 86. Validate You may startwith what you think is important for the customer but do not forget to verify it by interacting with your potential customers at some point
- 87. Customer Profiles Who is itfor? What does it do? Value Maps Business Model How to sell it?
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- 89. INDIA STARTUP IGNITERS Weneed YOU to participate, let’s collectively help fellow entrepreneurs to build cool startups!