Class Reminders 3/7 – Be sure to read, important info

For next time we meet, which is after spring break (yay!)

Continue doing your customer discovery and be prepared to update us on what you learned in class. You don’t have to send me anything in writing this time, but we will ask you about it. Each person should do at least six more interviews.

Keep working on: 

1. Really understanding your problem and the size of your market

2. Honing that pitch

3. Your customer segments (who are you targeting)

4. Your value propositions – what value do you deliver to your customer? Why would customers turn to YOUR company over another? How are you solving the customer problem or need?

5. You don’t have to “turn anything in” for number three or four right now, but they will be written up as part of your final business plan. Optional: If you WANT to send them to me in writing for feedback, I’d be happy to look at them.

6. I will be sending a blog post related to the readings for you to comment on.

This could be helpful to you as well. These are examples of general types of possible value propositions, from the book Business Model Generation

·         Newness. Often though not always related to technology. Satisfying a new set of needs that customers didn’t even know they had. For example, cell phones created a whole new industry.

·         Performance. For example, a computer that is faster, has more storage, better graphics, etc. Improved performance has limits in terms of driving demand though if you get past what is “good enough.”

·         Customization.  Tailoring to specific needs of individual customers.

·         Getting the job done.

·         Design. (think about fashion and consumer electronics.)

·         Brand/status. Show that you are “in;” Rolex signifies wealth, etc.

·         Price – similar value at lower price. Some customer segments will be more price sensitive. For example, Southwest airlines, low frills.

·         Cost reduction – Helping customers reduce costs. For example, in B2B, helping a business reduce their costs.

·         Risk reduction. E.g. a one year warrantee on a used car.

·         Accessibility. Making products/services available to customers who previously lacked access to them. E.g. mutual funds made it possible for people of modest wealth              to build diversified investment portfolios. NetJets makes it possible for people to access private jets.

·         Convenience/usability. E.g. iTunes makes it easier to search for, buy and listen to music.

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