LLP@Tecnico���Class 4

Luis Caldas de Oliveira

Agenda for Class 4

• Q&A about Customer Segments

•  Team Presentations: Customer Segments Findings

•  Summary about Channels

• Work for Next Week

Q&A CUSTOMER SEGMENTS

Common Errors on Customer Segments

•  Poorly designed and vague data from customer interviews (“they liked our product”)

•  No articulation: hypotheses/experiments with pass/fail tests

•  Confusion between users/payers/recommenders, etc.

•  No customer archetype

Market Types

4 Market Types

•  Existing Market: faster/better (high-end)

•  Re-segmented Market: niche (marketing/branding), cheaper (low-end)

• New Market: innovative or cheaper/good enough

•  Clone Market: copy of an existing business model

Market Type Trade-offs

One-sided Market

•  Product/service serves a single class of customers

•  The value propositions does not depend on interaction between classes of customers

Multi-sided Market

•  Product/service serves multiple customer classes

•  Some of the value propositions depend on interaction between multiple classes of customers

Customer Knowledge

Value Proposion: defines the MVP

Customer Segment: defines the archetype/persona

Customer Workflow

TEAM PRESENTATIONS: CUSTOMER SEGMENTS

CHANNELS

Two Questions

1. How do you want to sell your product?

2. How does your customer want to buy your product?

How do you want to sell your product?

ü Yourself

ü Through someone else

ü Retail

ü Wholesale

ü Bundled with other products/services

How does your customer want to buy your product? ü Same day

ü Delivered and installed

ü Downloaded

ü Bundled with other products/services

ü As a service

ü …

Types of Channels

•  Direct: sell it yourself

•  Indirect: OEM, VAR, Reseller, Distributor

•  Licensing: they make it and sell it

The Channel can be the customer

•  Products embedded in others (OEM – original equipment manufacturer)

•  Products resold by others (VAR – value added reseller)

•  Products distributed by others (Distributor)

Channel Economics

•  Commission

•  Percentage of sales price

•  Discounted pre-purchase

Channel Economics: Distributor/Reseller

SG&A – selling, general and administrative expenses R&D – research and development expenses

Book Publishing

Book Publishing Economics

Channel Diagram (Direct)

NEXT WEEK

Presentation for Next Week

•  Slide 1: Cover slide

•  Slide 2: Business Model Canvas (changes marked in red, different colors for multi-sided markets)

•  Slide 3-n: What is the distribution channel: hypothesis, experiments, results, action

•  Slide n+1: Channel diagram with annotated channel economics

•  Slide n+2: Images of your prototype

Before Next Class •  Talk to 10 customers and channel partners

•  Update LPC Narrative and Canvas

• Work on your MVP: site or wireframe (web/mobile), prototype, model, crowdfunding (physical product)

•  Prepare Class Presentation

• Watch Lecture 5: Customer Relationships

Obrigado