LLP@TecnicoClass 4

Luis Caldas de Oliveira

Agenda for Class 4

• Q&A about Value Proposition

• Team Presentations: Value Proposition Findings

• Summary about Channels

• Work for Next Week

Q&A VALUE PROPOSITION

Customer Discovery

Wrong: “Here’s what I saw, and here’s more of what I saw”

Good: “Here’s what I saw, and here’s what it means”.

Presentation Format

• List the experiments (slide 4)

• Describe the experiments (slide 5-n)

• What we thought (hypothesis)

• What we did (experiment)

• What we found (results)

• What we are going to do next (action)

Waterfall vs Agile

Waterfall: founders assume they understand the customer problem and they specify a solution (spec sheet)

Agile: use MVPs to find the “Minimum Feature Set”

Customer Segments

Value Proposition Canvas

• Customer Jobs: tasks that customer are trying to perform and complete

• Pains: undesired costs and risks that your customer experiences

• Gains: benefits that your customer expects or desires

Value Proposition

Value PropositionCanvas

• Products & Services: your offer to help your customer

• Pain Relievers: what pains are alleviated by your products & services

• Gain Creators: what gains will your products & services create to your customer

Trigger Questions

Could your product or service…

…produce more savings?

…make your customers feel better?

…offer a better solution?

…put an end to your customer’s difficulties?

…eliminate risks your customers fear?

…wipe out negative social consequences?

Trigger Questions

Could your product or service…

…create savings for your customer?

…exceed your customer’s expectations?

…outperform current value propositions?

…make your customer’s life easier?

…fulfill a desire of your customers?

…help make adoption easier?

TEAM PRESENTATIONS: VALUE PROPOSITION FINDINGS

CHANNELS

Two Questions

1.How do you want to sell your product?

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

How do you want to sell your product?

üYourself

üThrough someone else

üRetail

üWholesale

üBundled with other products/services

How does your customer want to buy your product?üSame day

üDelivered and installed

üDownloaded

üBundled with other products/services

üAs 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 expensesR&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