1. Step 8: Quantify the Value Proposition

2. Align Value Proposition with Persona’s Priorities
Outline
Overview
Align Value Proposition with Persona’s Priorities
“As-is” vs. “Possible”
Workshop
December 1, 2018

3. Calculate this as a quantifiable metric Show to customer
Overview
Goal: determine how benefits of product turn into value that customer gets
Calculate this as a quantifiable metric
Show to customer
December 1, 2018

4. Quantified Value Proposition
Overview
Quantified Value Proposition
Converts benefits to Persona from product into tangle metric
Metric aligns with Persona’s top priority
Your product might:
Simplify a process
Reduce environmental impact
Give businesses a competitive advantage …
December 1, 2018

5. Overview
3 Simple Categories
Better
Faster
Cheaper
December 1, 2018

6. Overview
GOAL: clearly and concisely state how your product’s benefits align with what customer most wants to improve
December 1, 2018

7. .. rather than going into detail on technology, features, or functions
Overview
Quantified Value Proposition – focuses on what potential customers want to gain..
.. rather than going into detail on technology, features, or functions
When customer purchases a product, ask themselves:
“what value do I get out of this product?”
Customers must justify their purchases.. Even to themselves
December 1, 2018

8. Align Value Proposition with Persona’s Priorities
Outline
Overview
Align Value Proposition with Persona’s Priorities
“As-is” vs. “Possible”
Workshop
December 1, 2018

9. Align Value Proposition with Persona’s Priorities
Previous steps:
Identified top priorities of Persona
Charted a Full Life Cycle Use Case
Now create a value proposition for Persona
Must align with their priority
E.g., want faster production => but product lowers costs?
Will it sell?
Probably not!
December 1, 2018

10. Align Value Proposition with Persona’s Priorities
Outline
Overview
Align Value Proposition with Persona’s Priorities
“As-is” vs. “Possible”
Workshop
December 1, 2018

11. Once you know Persona’s priority, focus all efforts on this
“As-is” vs. “Possible”
Once you know Persona’s priority, focus all efforts on this
GOAL: compare “as-is” state without your product to “possible” state with your product
Make this as quantifiable as possible
Measurable difference between “as-is” and “possible” => QVP
Don’t make it too complicated..
December 1, 2018

12. Helpful to create a supporting diagram
“As-is” vs. “Possible”
You should be able to state your quantified value proposition in one sentence
Helpful to create a supporting diagram
Compares as-is to possible with illustrations of value gained
Use the customer’s own words!
Try to make differences as obvious as possible!!
December 1, 2018

13. Share QVP statement + illustration with Persona
“As-is” vs. “Possible”
Share QVP statement + illustration with Persona
Persona should be able to understand difference
Persona will then agree / disagree with assessment
Help you understand key areas
Don’t be too aggressive with your numbers
“Underpromise, overdeliver”
If you overpromise, you may lose credibility
December 1, 2018

14. Align Value Proposition with Persona’s Priorities
Outline
Overview
Align Value Proposition with Persona’s Priorities
“As-is” vs. “Possible”
Workshop
December 1, 2018

15. Worksheet #1: Persona’s Priorities
Workshop
Worksheet #1: Persona’s Priorities
Talk to Persona about how to measure quantitatively (including units)
E.g., Saving money => value proposition measured in dollars or dollars per time unit
E.g., Reliability => value prop is failure rates, downtime.. …
December 1, 2018

16. Worksheet #2: “as-is” vs. “possible” Diagram
Workshop
Worksheet #2: “as-is” vs. “possible” Diagram
Map out how Persona operates in “as-in”
Interview Persona to get information
Use their own words in diagram
Try to quantify value proposition in each step / stage
Validate with Persona!!
If Persona has hard time understanding, then you haven’t demonstrated your product’s value proposition..
December 1, 2018

17. Worksheet #2: “as-is” vs. “possible” Diagram
Workshop
Worksheet #2: “as-is” vs. “possible” Diagram
Define “possible” state in same terms as “as-is” but with product instead
Explicitly show how product better satisfies Persona’s #1 priority
Express using units that measured Persona’s top priority
NOTE: remember- don’t overpromise the benefits
underpromise, overdeliver
December 1, 2018