Using Value propositions in the real world Using the Value Proposition Canvas to help validate ideas, products, and services

Business model canvas A great tool. Sometimes you don’t need to fill out the entire canvas as it can be overwhelming Start with identifying your customer segments (all of them) Describe the value proposition for each of your customer segments

Value proposition canvas VPC My favorite place to start If you don’t understand your customer segments and what they want, how can you complete the BMC? Sometimes you just want to better understand your customers

BMC / VPC The Business Model Canvas helps you create value for your business The Value Proposition Canvas helps you create value for your customers

Goal: Recognize Team Members for living our core values Real world example Goal: Recognize Team Members for living our core values Core Values Shout-Outs Far Reach Huddle The challenge: Living core values – how to recognize team members? We can do that in bi-weekly huddles How to deliver? Answer: shout-outs

What is a hamburger? A Hamburger is something a team member gives to another team member to recognize them for living our core values The challenge: Living core values – how to recognize team members? We can do that in bi-weekly huddles How to deliver? Answer: shout-outs

Real world example – Our MVP I’m a college football fan. Many schools have the concept of “stickers” that players add to their helmets for various things. We created our own personalized board. Team members could then add stickers to our board. Not really working as well as we had hoped for many reasons, as I’ll mention as we go along.

Real world example – Our idea Huddle Helper App

Getting started Identify the customer segments you are targeting with your product/service Identify the Value Proposition for each customer segment

Getting started Customer Segments Far Reach Team Members Value Prop: Create a tool that would make giving and receiving hamburgers fun and easy Chief Hamburglar Value Prop: Create a tool that would make it easy to tabulate, report, and share hamburger statistics

HH - Value proposition Is there a fit between the customer profile and your value proposition? Do your products & services meet the customer’s jobs Which pains are eliminated or reduced by your value proposition? Which gains are created or enhanced by your value proposition?

Customer profile

Customer profile - Jobs What are customers trying to get done in their work and lives? Functional Social Personal/emotional Supporting Rank those jobs from most important to least important

Customer profile - pains List bad outcomes, risks, and obstacles related to the customer jobs Rank the pains by the most painful to least painful

Customer profile - gains List the positive benefits and outcomes the customer segment might experience by using your product/service Rank the gains by most important to least important

Huddle helper - Jobs Team Members Recognize when a hamburger should be awarded to a team member Give out the hamburger during the huddle Remember to give out the hamburgers Manually write down the hamburger on the team member's board

Huddle helper - pains Team Members Not prepared to award hamburgers when asked during the huddle Manually writing it on a person's board requires time and remembering to do it Mostly have to be present to give/receive, so people may not know that they received a hamburger Each year we have to clear our boards Not timely

Huddle helper - gains Team Members Save time – make it simple and easy to give/receive hamburgers More timely Works for remote employees It "gamifies" the process View statistics – filtered by core value, date range, employee View standings at any time

Huddle helper - Jobs Chief Hamburglar Remember to send out reminder email Manually tally results for all employees Document results outside of the manual boards

Huddle helper - pains Chief Hamburglar Difficult to track hamburgers stats – by giver, by receiver, by core value Very manual process for everyone Takes up time during huddles as people have to think about ideas Not an easy way to view the feedback Remote team members or people not present at the huddle usually not included

Huddle helper - gains Chief Hamburglar Hamburgers submitted before the huddle, so no longer have to ask during the meeting Time savings View results at any time – could bring up prior results for discussion Categorized feedback – could make it much more actionable Remote team members could more easily participate

Huddle helper - profile

Value proposition

Value proposition – Products and services What are the products and services you are providing to the customer segment? Rank by relevance, from essential to nice to have

Value proposition – pain relievers Explicitly describe how your products and services alleviate customer pains Rank by relevance, from essential to nice to have

Value proposition – gain creators Explicitly describe how your products and services creates customer gains Rank by relevance, from essential to nice to have

Huddle helper – products & services Team Members Ability to serve a hamburger to a team member any time – open 24/7 Ability to attach a core value Notification of hamburger sent to the recipient History of hamburgers – both sent and received Team members can update their profile

Huddle helper – pain relievers Team Members Manual process eliminated Don't have to be present at the huddle to give/send Historical information available 24/7 from anywhere Notifications

Huddle helper – Gain creators Team Members Immediate gratification More hamburgers = more gratitude Ability to provide immediate feedback Ability to give remotely anywhere/anytime Simplified process

Huddle helper – products & services Chief Hamburglar Listing of history of hamburgers – both sent and received Dashboard for the Huddle that provides summary and stats

Huddle helper – pain relievers Chief Hamburglar Automatic tallying of hamburgers Views showing results that can be used in the huddle Reduced the effort involved with managing the process

Huddle helper – Gain creators Chief Hamburglar Provide insights into which core values are being recognized Provide insights on which team members are sending / receiving hamburgers Could easily share the responsibility of "Chief Hamburglar"

Value proposition Is there a fit between the customer profile and your value proposition? Do your products & services meet the customer’s jobs Which pains are eliminated or reduced by your value proposition? Which gains are created or enhanced by your value proposition?

Huddle helper

Huddle helper

Huddle helper

Next steps If you find a fit between the customer profile and your value proposition, you have a problem-solution fit. Next steps: Complete the Business Model Canvas to build out your business model Create a strategy to test your idea Tip: Identify the riskiest assumption and test that first Test and gather feedback Review the test results, make adjustments to your business model, and test Repeat as needed

Value proposition canvas Questions?

Chris Rouw chris@farreachinc.com @chrisrouw thanks Chris Rouw chris@farreachinc.com @chrisrouw www.farreachinc.com/EntreFEST