Value Proposition Design - Master Class | Emad Saif | Skillshare

Value Proposition Design - Master Class

Emad Saif, Educator and Entrepreneur

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22 Lessons (1h 3m)
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About This Class

This practical course is focused on the "Value Proposition Canvas" tool that helps startups and organizations design compelling products and services that customers will buy. It's must have tool if you want to save time and effort in designing your product or service. The best thing is it's visual, practical and is easy to learn. This world class tool was introduced in Alex Osterwalder's top seller book "Value Proposition Design" and is a continuation of the "Business Model Canvas". This excellent visual tool is easy and practical. 

  1. Use the value proposition canvas to come up with great value propositions
  2. Develop deeper understanding of your customer
  3. Map out a detailed customer profile
  4. Design products and services based on customer needs
  5. Extract powerful value propositions
  6. Check your customer-product fit

Transcripts

1. 0: Hi. I would like to welcome you personally to my course on how to create products and services that customers want. My name is a Matt safe. I am an educator entrepreneur who loves helping people with ideas it might feel of entrepreneurship. I educate entrepreneurs and give them the latest tools to help them tackle this great challenge off starting amazing new companies. I have experienced conducting workshops in the field of business models, value propositions, design thinking and others, and is my pleasure to welcome you to this course. In this course, we will focus on a very useful tool called the Value Proposition Canvas. This stool has been introduced in the top seller Value Proposition Design by Alex Foster Waldir. You may be also familiar with the other tool, the business model canvas in which this, too is a continuation of that one and will help you dive deeper to create products and services that customers really want. In this course, we will learn how to use the value proposition canvas to come up with great value propositions for our products and services. We will learn how to map out a detailed customer profile, understanding all the hidden needs the jobs you want to accomplish, the pains that they're avoiding and the games they're hoping to achieve. You will learn how to design your product service based on customer needs. You will learn how to extract powerful value propositions and then check your customer product fit. Does my product or service really fit with the customer needs? In this course, you will be able to ask all your questions in the Q and A section. I will be here to help you every step. So don't worry. You can ask questions and I'll get back to you as soon as possible. So are you ready? Let's do it. Let's learn how to use the value proposition canvas and stop building amazing products and services. 2. 1: value proposition describes the benefits customers can expect from your products and services. So think of your product and service. Whether you are a start up company or an existing organization, you have a target customer and the promise you make to this customer that by buying my product or service, you're gonna enjoy these certain benefits. That is really your value proposition. Think off any products or services that you see now in the market. It could be the over service on iPhone, a luxury bag, Netflix, anything, even a game. Like angry birds. All these parts on services offer certain benefits to customers. Now the customers will perceiving differently. Some customers will dislike the products and services. Some will be neutral, and perhaps some would really like it. I would be willing toe pay for them. So what are these essential key features that produce certain benefits that wins the heart of the customer? That is the essence off our discussion today about the value proposition. If you are an entrepreneur, you probably know how hard it is to create product or service that the customer loves. It's really not easy, and this is a challenge that's faced by a lot of people. Whether you are an entrepreneur working on your son of company or an existing organization , I would like to share with you my real startup story, the first story that have taught me tremendous lessons. And it shows the challenge of really creating products and services that customers want. So the story started by meaning and inventor who was really fascinated with Star Trek, a TV show you all know he was impressed with a device called The Tri Quarter. This device had a lot of cool sensors and features in it. So the idea was that once you go on a new planet, you're able detect life forms, magnetic waves, thermal images, all kind of things around you from the surrounding. And the challenge was, how can we take this product or service and be able to fit it with the right market? After researching, we have found that there's an opportunity if we use this device for the home inspection market. So to explain this farther when you typically want to buy your home, which is really your biggest investment, you hired a home inspector. This home inspector would use certain devices and gadgets to check. If there's any faulty or anything you should know about, you know, in the house that could be cracks in the foundation. That could be molds. It could be all kind of problems that will lower the value and thus affect buying the house . So we thought that if we're able to tweak this product, the tri quarter, which we call later the Inspector Mirror, were able to produce all kind of interesting data such as heat and moisture, maps were able to see this defective wiring mold foundation in cracks and much more. We thought that this product will be the next big thing in the home inspection market. It will come in, replaced all these random tools at the use and will give them one really strong, powerful tool toe ultimately be able to help the Homebuyer by the the House with no worries . So we said that our product is gonna be ah, home inspection device and that our customers will be the home inspectors. Those who will carry out the inspection of the home and we have way have assumed that by setting the current products being used by the by the home inspectors that our product will be able to save 20%. You know, a time saving, which is great for them. Less time to do the job and are too will be 80% cheaper than all the collective tools. So the home inspector spend around $10,000 or more on different products are device will have all kind of sensors at a cheap cost, and people do the same job at a much, you know, better quality and price. And at the end, the better quality inspection means that we'll be able to give the customer authority home inspectors the power to give a really comprehensive report Really quality inspection that was not miss anything in the house. And it's gonna be really great news for the homeowners. So our question was, Is there if it yes, there must be effect because, look, look how this product is amazing. It saves money. It's high quality and is going to really help people buy homes safely with low risk. So we went about and we did some surveys with Dr customers. We observed them, so we're able to validate that the customers will actually enjoy the time savings that tools is actually cheaper. We'll look at what they buy and all that and that we, you know, ultimately will provide this amazing, better quality inspection. However, something interesting happened as we dug deeper. We found out that actually there is a huge threat to us and it's liability, something we have never thought off and would not have ever considered if we have not, you know, went with the home inspectors to observe them and asking questions on the job. So what does that really mean? Home inspectors in that case produced a report on this report has not off disclaimers that , you know I'm not responsible for this. My report on includes things that I can see etcetera, etcetera. So in a way, it's a way to protect the home inspector when he submits the report. Otherwise he will be subject to lawsuits. So essentially our product and service, even though it's great, it was gonna add more risk to the Home Inspector and ultimately add liability to them, which is not good news. So unfortunately, this spent that home inspectors will not buy a product, I said, as this waas, we have relearned great valuable lessons that we still reflect back on to this day. The first lesson I want to share with you is that they were heading customer needs things we never thought you know existed. So we thought when you our customer very well by looking at, you know, doing interviews by researching observing them. But only when you dig deeper were able to unearth or discover this really headed needs that would really affect the customer in what, you're gonna buy the product or not. The second lesson was that we had a poor approach for product customer fit. We did. We were amateurs. We don't know exactly how do we approach this problem? What is shooting blanks? Hoping that this product work and customers want to buy it. The third lesson is that we were filling fast. We saved this. Actually save us time and money. So I know it sounds weird that you know you want to when you want to succeed, But sometimes feeling fast will help you avoid, you know, putting so much more time and effort and money into this. Imagine if we have went and we started producing this product manufacturing it only discovered after that it will add, you know, liability and risk to the home. Inspector Andi would not buy it, so that was a very important lesson. A very strange one toe actually fail fast. It turns out from one research that the number one started mistake is actually building something nobody wants. So in our mind we were not building something nobody wants. But this is actually something that have to reflect on us entrepreneurs. We always pursue ideas, and you want to make a big difference with these products and services. But sometimes we lose track of what the customer really wants, and we built something that is absolutely not needed. That's the harsh reality that we are faced with entrepreneurs and also as companies as we mentioned before. Creating products and services for customers is not easy. This is true for start up companies as well as actually existing organizations. For example, high ins, which is a known company that makes catch up. They have experimented at some point with giving kids catch up with different colors, Purple, black and what not? And what happened is that they were shocked to find out. The kids may enjoy colors for growing, but not for eating. So this product completely failed because of lack of understanding off the customer. Another example is Crystal Pepsi, Ah, product launched previously by Pepsi, hoping to, you know, give a customer a healthier virgin off the Pepsi. But the transparent color off the Pepsi was not resonating with the customers did not like it. And that was again a lack of understanding over the customer really wants and considers bizarre Pepsi. So that product filled. Another example is Colgate. Colgate is known for the toothpaste that we use to brush our teeth. Colgate years back Try toe, get into the frozen food industry. But again, the customers are not perceived that aimco get with the food as something to be wanna eat, So the products failed. Another example is Harley Davidson, known for its very famous moral cycles. When they introduced new perfumes, the smell of the perfume, they thought was gonna be nice with the you know, that brand Hurley deficient. But the smell did not resonate with the authentic deep brand that they had so that brought it also failed. The last example wanna share with you is the Ford that sell ah model introduced by Ford. I mean a giant company that you have a lot of resources, a lot of knowledge. They don't understand the customer need because this product before it sell the design itself was compared to a toilet seat on eventually filled so and recited the customer is not as easy as we think. There's a lot of challenges that its face, whether you are a start up company or an existing organization. The big challenge for startups at enterprises is that there's a lot of wasted time and resources on pursuing this parts and services. These are unproductive meetings going back and forth, and there's a lot of uncommon language. People are talking about the product. They have a different understanding of what the customer wants. It's really chaotic and difficult, and that ultimately leads to product failure. In many cases, which is really sad. You may have really amazing ideas, but because of these challenges you are doomed to fail. So we definitely need a better approach for creating value for customers on lowering risk of failure. For that reason, this course we focus on a new amazing tool called the Value Proposition canvas. This tool is mentioned in the top seller book Value Proposition Design by Alex, Pastor of Older. Now this book is a continuation off the Business Model generation book that is also a top seller and has introduced the business model Canvas stool. So this is a continuation off that tool that dives in deeper to help us design products and services that customers actually want. I personally have uses tools, and I found it really, really amazing, and I hope that you find it beneficial and be able to apply it right the way to help you design the next awesome product and service for your company. 3. 2: you may have heard the story before that if you have an idea for a product or a service that you truly believe in, unwilling to work really hard to make it happen. You did this idea and you research it and then you produce a business plan. Ah, document that describes all aspects of your business. All the details from your financials, your marketing plan, toe all the details you need to convince an investor or a banker or whatever. You go for funding, that your idea is good and then you get the money and then you succeed. Does that sound familiar? Well, this is always to think of business. The always used to look at business and believe that this is how we should go about it. But this actually very risky. There's a lot of challenges that we face as entrepreneurs and also as companies that will make this really difficult to implement. We also fall in love with our ideas, and we lose focus on what customers really want. Among other challenges, that makes it very hard for any entrepreneur or business to start learning from their mistakes and be able to avoid all the costly mistakes and time wasting all these things. So I want to share with you a process called the Value Design Process, Also described in the book The Value Proposition Canvas, This process describes a way in which we can extract hypothesis. We can come up with tests that we design, and then we were on to velvet with the customers. It's almost like a iterated fast process, a very lean process that we can validate quickly our assumptions before putting a lot of money and time and effort into the final product. So the first tool in this valley design process is called the business model. Canvas this till you've been perhaps a familiar with or you have used it. I've delivered a course before on this topic, and you can find more details about it with a special coupon at the end of the course. It is really important to know at least the basics of this to in order to understand fully the value or the information in this course, this course we will focus on the second tool, the value proposition canvas. This tool is a continuation that builds on the business more canvas, and it will be our main focus for the scores. The other elements or the steps and the value design process will not be covered in the scope of this course. Hopefully, we can cover in future courses, so that's how the value proposition canvas looks like. We will cover it in more details in little lectures, and we'll have also examples that we can help us understand the tool in more depth. 4. 3: the business model. Canvas is the previous tool in which this tool, the value Proposition campus and the scores is building on. So I think will be helpful to give you a quick review for those who have not taken the course or know about the tool. So there was a smaller canvases, essentially one page that, as you can see in the picture, you have a lot of cool, sticky notes and information that helps you, you know, with the business. So let me explain this Father, the business model canvas is a tool to create and analyse business models. It can help you whether you are and you start a company trying to create a new business model easily. Or you are interesting company trying to analyze an update your existing business model. So the business model canvases a one page composed off nine building blocks. Each building blocks describes an essential element that makes up any business model. Any business you can think off can be broken down into these nine building blocks as you can see her fun of you, so let's go through them. The business model canvas is first starts with the customer segments the customer segment essentially are the group people on our organizations, a company or organization aims to reach and create value for with with a dedicated value proposition, a value proposition are based on a bundle of products and services that create value for a customer segment. The channels described how a value proposition is communicated and delivered to a customer segment through communication, distribution and sales channels. The customer relationships outlined what type of relationship is established and maintained with each customer segment, and they also explain how customers are acquired and retained. The fifth building block is the revenue streams. Revenue streams result from a value proposition successfully offered to a customer segment . So it's how organization captures value on a price that customers are willing to pay for that service or product. The next building block is key resources. It's the most important assets required to offer and deliver the previously described elements. The key activities are the most important activities on organization needs to perform well . Next. Key partnerships show that it works off suppliers and partners that bring an external resources and activities to the business. So these are the things that are outside the company not within the activities and the resource is on. Finally, the cost structure describes all costs incurred to operate the business model. You can see on the right side we have the revenue streams and in the car structure, the difference is the profit. So the profit is calculated by subtracting the total off all costs in the cost structure and from the total off all revenue streams on the right side. I hope this quick review gives you a basic understanding off. What the business moral canvas is on helps you just to grasp the ideas and concepts into the store. If you would like to learn more and go more depth, I recommended take my course on business model canvas. As I said before, you can find information and a special discount for you at the end of the course. 5. 4: the value proposition. Canvas is a tool that helps us design, test and build great value propositions. As we said earlier, it builds on the business more canvas tool that we described in the last lecture. So if you look at the two building blocks, the value proposition and the customer segment, the customer segment, as we said, is the group of people or company or individuals that we're trying to solve the problem or meet their needs. And the value proposition is are offering through our product or service is gonna satisfy the customer need or solve their problem. So we need to ensure that both of these fit meaning that the benefits instilled into the value proposition actually meets the exact requirement of the customer. So from that were able to extract the tool, the value proposition canvas. So on one side we have the customer profile understanding you know who is the customer and then the other side. We have the value map, which is our offering. So the value map is a set of value proposition benefits that you designed to attract customers, and the customer profile is a set off customer characteristics that you assume observed and verify in the market. So we're essentially designing benefits to meet exact characteristics off the customer profile. The value proposition canvas is composed off two sides. The right side is the customer profile, and the left side is the value map. The customer profile is composed of three sections. The jobs the customers to accomplish that pains negative outcomes, is trying to avoid what, doing these jobs and the gains the positive outcomes is trying to get from doing these jobs . The value map is composed of three things. The pain relievers, game creators and products and services. We will describe each of these in more detail into the following section, but for now, this gives you a visual understanding of what the value proposition canvases before we move on. Legis Look at if we approach the customer from the left side, if we basically have ah, product designed looking for a customer that's called a product inspired innovation. In a way, it's, ah, market Bush. You're trying to take a product and find a suitable market and what you can customers a product and sell to them if you're cold. My example before about my device to inspect aviator in the start up story. That's exactly it was really hard to push the product and its design features to suit a customer need. So you essential searching for a customer for your product. The opposite of this is the customer inspired innovation in which you are looking at what the customer wants, what are their needs, and based on that you develop a product or a service, so that's typically a better approach because it keeps the customer in mind. You really listening very carefully. Are you not trying to push a product or technology down the customers throat? You really understanding on working with what the are the characteristics and the needs off the customer? In the next section, we will dive deep into all the components off the value proposition campus. 6. 5: the customer profile makes up the right side off the value proposition. Canvas in this section will focus on the essential things you need to get started first. Our objective is to visualize what matters to your customers in a shareable format. The outcome will be a one page, actionable customer profile. To get started, need to first download the customer profile canvas. You'll find a link to a pdf file into the resource of section off this lecture. Then you need to grab a set of small, sticky notes prefer with different colors on would be different markers, and you see after in the course on the number three will need to use these sticky notes to map out our customer profile. We will describe how the user more details in the following section, so let's get started. 7. 6: the first step in constructing the customer profile is choosing the customer segment. Now. If you have downloaded their value proposition canvas, you probably noticed the top right where. Sales customer segment. So that's our first step. We have to decide who are the group of people or the customers of trying to serve or solve their problem. So let's start by defining what is a customer segment. Ah, customer segment is the groups of people or organizations who share similar characteristics that you aim to reach and create value for them. So you can consider any off these things in regarding a customer segment. It could be based on demographics. People with common age, gender income, Mariel status, ethnic backgrounds could be something with Geographics Are the local national regional to national behaviour. Oh, did he have a shared benefit? Uses rate or patterns on cycle graphics? Do they do certain activities in common personality and values attitudes? So think of the customer segment who are the specific group of people that you are trying to serve and which one of these combinations really make up the customer. Of course, the more you know about the customer segment, the more helps you and drafting and guessing the customer profile. But for now, we can Onley just you work what you have. If you have some basic information, that's fine. If you have a lot of research, lot of understanding that will be also helpful in constructing the canvas. So for our example here to make it easy to explain the details of the value proposition canvas, we're going to choose first of all, our customer segment. So I chose in this example taxi passengers in a man Your them So that just said a customer segment who will use a taxi to go from Point A to Point B, and they happened to be located in a geographical location, which I chose to be young man Jordan. Of course, when you think of taxi writers, they maybe some various, is from one location to another. But for now, in this example, just imagine that if you're in there shoes, you just, you know, writing a taxi and think of all things that we discussed now, so you'll go through regarding the jobs, pains and gains. We will explain this in more detail in the next lecture 8. 7: now that we define who are the customer segments, in our example will be the taxi passengers in our man, Jordan. Now we can move on to the first segment off the customer profile canvas, which is the customer jobs. Castle jobs means What are the customers trying to get done in their work or in their life ? A customer job could be the task that they are trying to perform and complete the problem they are trying to solve or they need. They are trying to satisfy. So make sure you think the customer's perspective when investigating the jobs where you think off as important, may not be the same case as what the customer is considering if you call our example with the Inspector Meter, the home inspection device, What we thought was most important was not the same for the customer. We cared more about the conducting off the if the data collection using the device, whereas the customer cured more about protecting themselves from lawsuits so liability so anyhow, the customer jobs could be functional jobs, social jobs, personal or even emotional jobs. So this now dive deep into the mind off our target customer. The taxi passengers. Let's imagine. What jobs are they trying to get done? So first of all, you might imagine maybe trying to call a taxi. So they are you using their normal phone? Maybe they are calling the company tryingto find where they can get a taxi. Another thing they could do is perhaps they are trying to find a taxi of person. So they're outside and they're just waiting in the street, waving at taxes, passing by, hoping we'll stop for them. So that's something trying to do. Now. It's assumed they got in the taxi. Now. Maybe they have to give another job is to give directions to the taxi driver. I want to go to this place or that place or howling will take. So there's an here, an effort to describe the directions to the location. I finally, perhaps, we can think of painting. So at the end off the job near the end, you, as the customer, have to pay for the service so they job off. Paying is something as well that has to be included into this, you know, and to this segment. So we have done now is we have thought deeply by observing by thinking, If you have any information from research or you've observed the customers, you've had a chance to stop them before you take all this into consideration. Are you trying to think hard about what are all the jobs the customer is trying to get done ? 9. 8: now that we are going to fight the customer jobs off the customer profile now we can move on to the next segment, which is the customer Pains Pains. Describe anything that annoys your customer before, during and after trying to get a job done or simply prevents them from getting a job done in the first place. So think, for example, of undesired outcomes that the customer wants to avoid. So, for example, maybe there's a pain. A solution itself is not work or performance poorly. Or perhaps it's something social or like emotional that this job makes me look bad or doing this job, you know, annoys me. You could also think of obstacles. What sort of pains are obstacles that prevent the customer from getting something done? So maybe this thing, I like the time to get the job done accurately, so that's an obstacle for me. The time is an issue and have enough time to get the job done. I don't think you can think of is risks, Chris are the undesired potential outcomes at the customer s fearing. So what can go wrong? What can have a negative impact or consequence on the customer keep in mind that the pains very in severity, so some customer may find a pain. You know, that is really, really bad that for them, this thing is the worst thing on the willing to pay for if you can make it go away. Some other pains may not be as relevant, so your job is to uncover which of these Spain's are the most severe. So now, going back to the taxi example, we said, we're gonna call taxi, find a taxi, give directions and pay. So what are some possible outcomes that you don't want to have? Perhaps waiting a long time to find a taxi is something nobody wants to do. So that's an obstacle or a pain for the customer, perhaps competing with other customers. If you're standing in a line trying to get online and find stop a taxi, someone will steal from you. That's also other outcome or pain that you don't want to deal with an additional unsafe driver. That could be a risk. So going with a driver who drives really fast or in a way, that is that professional, that could be considered a risk and another outcome that perhaps is really annoying to some customers is being overturned by taxi, so having a taxi charge you more is differently, a pain for a lot of customers. So these are not all the pains we can think off, but for now, just also the point that these are some of the pains that the customer might encounter while they are trying to get the jobs done off, calling a taxi, finding a taxi, giving directions or paying. 10. 9: Now we're moving on to the last segment off the customer profile, which is the customer gains. Customer gains refers to the outcomes and benefits your customer wants. Now some of these wants or benefits will be required. Some will be expected, some will be desired, and some will be a surprise of the customer. So let me explain with an example. If you look, for example, offering a phone, ah, phone. The required gin would be just for the phone to make phone calls. That's a functional job that the customer requires to, you know, do in terms of his jobs. To make a phone call they expected to gain would be something that is relatively and expected, gain to be included like, for example, the look of the phone. You know there's something independent of the functional job, but it's something that should come automatically with the product or service, and then we have desired gains. These are things that are a little higher things that if you are able to include extra functionality, extra features is the things that the custom would be happy if it's added in the product or service on. Lastly, unexpected gains on the things that you really shocked the customer, you surprise him. So, you know, amazingly in it something that wow, I don't know. This function was here. So you were go extra beyond what the customer expects. I give them something that really will help them accomplish the job and perhaps do much more now, just like we discussed the severity for the pains. Something for the games. We have to be relevant. Keep in mind some gains could be absolutely essential and expected by the customer on something just nice to have so ensure that your product or service, or at least came to not have it be just nice to have something that the customer really want to do because it really give him that desire, that gain that they are looking for now, back to our example. So we can say that the customer expects that the hat arrive on time. The taxi. This is an expectation that we're going to spend all day in a taxi that relatively arrive on time. Now, the more you can quantify these things, the better. So, for example, you say the customer expects to arrive within plus minus, you know, the distance times of 5 10 minutes, extra or less. That's something as the customer on the same thing. For the pains, the more you can quantify these things, the better you can have an understanding of what the gain or the pain and be able to focus on it. Toe address in your social letter on So we said, arrive on time. Also, fair price. The customer expects that he will be pay. A fair price will not be a ridiculous amount for the service. It has to be something reasonable again what that is. We have to really dig deeper and quantify what that IHS also easy payment. The way we pay the customer should be an easy process. Nothing complicated. So some will ask you for extra tip for extra money. So perhaps it's not ease in terms of how you pay or you compensate the driver on formally professionalism, so the customer expects or desires that the driver will be professional in terms of that, for example, they don't smoke in the car the way they behave this professional, the way they talk that way to conduct themselves. So these are some of the gains that we could think off regarding this example off taxi passengers again, you can think probably of more examples, but this is what we're trying to just focus on the main gains that we think are the most relevant to the customer. Now you may be thinking the RT gains the opposite off my pains. So, for example, if I put below wearing a long time and then opposite on gains are at one time are the opposites, in some cases they are. But remember that the gains are focusing on what the custom really desires, whereas the pains are things that the customers avoiding. So buying into some things when you quantify it will be more focused on pains on more on gains. But if you have them repeating its fine, you'll see later on, you're able to focus on the most essential things for pains and for gains 11. 10: the last step off the customer profile canvas is ranking no, even though the customer profile is based on an assumption off who the customer segment is . And I know each customer has different preferences and is very subjective, but you still have to get a sense off. What are the customer priorities here? Because you have to investigate which jobs are the majority that consider important or significant find out which pains that they are really extreme versus the ones that are not so much. Learn which gains are the most essential to the customer on which was just nice to have not a big deal. So here ranking helps us get a perspective off the customer and the starting point. Now, don't worry if yours is still you think is very subjective. It's a starting point and, as we go on will have many it orations where we can keep ranking and changing the pains, the gains and the customer jobs based on the feedback off the customers. For the time being, let's try to rank them so we start with the customer jobs here. We rank them based on importance. Which off these jobs do we think are the most important. We want them on top, and the bottom is actually the more insignificant something we do for the pains. We go with the most severe. Which pains are the most civil to the customer on which are moderate goes the bottom. And, lastly, the game relevance. Which ones ranked the highest in terms of how essential t out of the customer on which ones are just nice to have not a big deal of the are there or not? No, we have the Kozma profile ranked. As you can see, we have the higher, more parity or, more important, jobs, gains or pains on top, and the bottom ones are not so important now with a perspective off the customer profile again, it's a subjective. It's a starting point that will help us go from there. Keep checking with the customers a trait, a trait until we hopefully get it right 12. 11: now some. Whereas what we have done, we sent our objective off. The customer profile is to visualize what matters to our customer in a Cheryl format. Now we have one page that exactly that, and we also said the outcome will be a one page actionable customer profile. So we have done. We have first like our customer segment. We chose the taxi passengers in our man Jordan. If you recall number two, we identified the customer jobs, the jobs, the customers trying to get done. Three. We identified the customer pains. What are the pains that the experience in doing these jobs and four we identified the customer gains? What is the customer expecting or desiring to get out of these jobs on? Finally, we prioritized the jobs, pains and gains from the most significant to the least significant. Here are some of the most common mistakes that are done when containing the customer profile canvas first mixing several customer segments into one profile. So the more we focus on one customer segment, the more we can dive deep if we have to. General customer segments is very broad, is very hard to go on detail and get the context off the customer. I understand all the aspects of how the out of the job second thing is mixing jobs and outcomes. We have a difference between outcomes and jobs. Jobs are the verbs that things that customers are doing outcomes is what we expect out of it. These are the things that happen on the gains, the thing that the customer hoping to get. But they must do the job so they are independently the jobs and the outcomes. Number three focusing on a functional jobs on Lee on forgetting social and emotional jobs, so must keep in mind. It's not only just doing the job, the calling the this in our taxi to think, How does this job make the customer feel? If you feel important, make them feel bad? We had 2% all the aspects of the customer jobs, not only the functional ones. Fourth listing jobs, pains and gains with your value publisher in mind. So this is a typical mistake. If you already have a social in mind, isn't really impact your ability to listen to the customer jobs, pains and games? Try as much as possible not to think of the solution. Just focus on who the custom is, the status quo. What is exactly happening right now. Pay attention to the customer and don't think about the solution just yet. Number five. Identifying few jobs, Pains and gains This essentially means that you are just not enough information about the customer, so you have to really think with your team about all the aspects. Make as many posted notice possible on all these days. It's OK to guests at the beginning. With time, you're able tohave a deeper understanding. But just please try to increase the number of posts. Don't keep a little the more you have, the better, at least at the beginning, on finally being too vague and descriptions off pains and gains. The more we are can articulate and quantify these jobs and pains. Say the pain. For example. You know, I hate waiting more than 10 hours for this. I expect to have at least $10,000 profit on you know the software. So think exactly what are these exact details they can quantify to make the pain or the gain very clear, the more clear it is. The seasonal job will be in the next section, which is the value map creating the product or the service features that can deliver the value to meet the customer needs. 13. 12: value man makes up the left side off the value proposition canvas. Now that we have completed the customer profile the right side, we're ready to move on to the left side. Our objective year is to describe explicitly how our products and services create value. Our outcome will be a one page map off value creation. As you can tell, this is similar to what we have done for the customer profile. We're going to start by grabbing the customer profile that we have previously completed, the one that we have all the rag jobs, pains and gains, and the next week, download the Value map canvas. You will find a Pdf download file in the resource section. Third, we're going to grab a set of sticky notes and different colors, and finally, we're going to map out how we create value for our customer. Let's get started 14. 13: Now we are ready to work on the value on the right side. You see the customer profile, which has all the ranked jobs, pains and gains that we have done earlier in this section. We're going to talk about the products and services, which is the first segment off the value map. The products and services are the bundles off products and services that we're offering to alleviate the customer problem. So think off the jobs that we have discussed earlier. The functional jobs social, the emotional that the customs tried to accomplish. We have to think of how are part of services are going to alleviate that pain. So the part of services could be physical and tangible, such as goods manufactured products to the intangible products such as copyright services or after sales could be digital like music downloads could be financial, it can take many forms, and in our case of the taxi, ours will be intangible. It'll be a taxi smartphone application, so that's the products and services that we're going to try to match it to the jobs and to be done. So I'm imagining here to this example that attacks this part for application will help the customer call a taxi and perhaps give directions, pay and do other things. So that's see product or service that I'm choosing here in this example. 15. 14: the second segment off the value map. This pain relievers pain relievers describe how exactly your products and services alleviate specific customer pain. They explicitly outlined how you intend to eliminate or reduce some off the things that may I know your customer before, during or after the job trying to get done now great value propositions for this on pains that matters to the customers, in particular extreme pains. So the bigger the pain that you focus on, the more the customer will be attracted to your solution. You don't need to solve every single pain that the customer has. That's unrealistic. But if you focus on the key pains, then hopefully your product or service will be really dead on and will please the customer . So, looking at our taxi example, we have the pains before it's, for example, waiting a long time. So what would eliminate or relieve that pain, for example, instant booking, having the ability for the customer to book instantly the taxi instead of wearing a time that is, for example, a pain reliever next being overcharged by taxi. So perhaps having a system where you pay by credit card and sloping cash that could be a way to eliminate that pain cost system. So instead of the customer you know, being again back to the payment method, you have no have a standard. So the standard off payment is very clear. The rules are very clear. No one's gonna ask you force you're paying more and, you know, you know, change the number change. The value is a system. There's enforced in the application, so you have to worry about the payment. The payment is defined and you spate. And lastly here is having an unsafe driver. So having a signed driver who's coming just for you, that could be something that is, you know, pain reliever. You're not fighting for any driver. There's someone coming specifically for you. So these are some pain relievers. Maybe they're not all the pain relievers. For all the pains we have in the customer profile again, that's OK. Your goes to think off. What are the top pains I want? Are the pain relievers ever actually eliminate or reduce the pain in the customer profile 16. 15: the third and the last segment off the value map is going. Creators game creators describe how your products and services create customer games. They explicitly outline how you intend to produce outcomes and benefits their customer expects, desires or will be surprised by. Just like in pain relievers, game creators don't need to address every single game that, um, defied in the customer profile. You could just focus on the most relevant gains of the customers on trying to incorporate that into products and services to really make a difference for the customer. In our tax example, we have that arriving on time is an important game for the customer. So saving time is an important game creator that we give to the customer to our product and service. You'll be able to save time something an outcome that the customer would love to have also professional drivers. We mentioned that some are you know, they expect a professional driver in the gain that customer profile. Now professional drivers will have trained professionals who are handling the taxi driving , so that will also be an expected gain or a desired gain for the customer visual map. We can surprise the customer. Give them a game creator. That dinner expect so by example, having a visual map wherever detectives traveling. So it's traveling. You can see on the map on your smartphone where you are going. This will you have the confidence that the taxes go in the right direction, and you also have a sense of security, can track every move or perhaps change your mind. Where to stop her to go. So gives you that visual security that you know the customer would be really un expecting to have in the product or service and finally, a rating system. So in order to guarantee also that the system is very professional, that we're gonna have a rating system in which the customer can rank or rate the taxi driver on this way whenever you take a taxi or or attacks, if he can see the ratings of each driver and can. Based on that, I decided to take the taxi or to take a different one. So these are some game creators that again help the customer get a certain outcome that they want out of the jobs that we described earlier and where does not meet every single gain that the customer has, but we want to focus on the most important, most relevant gains, and we designed them part of our value map. 17. 16: The last step off the value map is to rank the priorities. We start by racking the products and services by the most essential, the most important products and services to the least important. In our case, it was only the taxi smartphone app. We have only focus on that. So that would be the only thing now for the pain reliever. Same thing we look at our pain relievers, which are the most essential. Now we move to the top by moving the post, it notes on top and the ones just nice to have in the bottom and same thing we do also for the game creators, the most essential on top, the least essential or the nice to have on the bottom. If we do this, we end up with again around value map, just as we have done for the customer profile. Now we can put both against each other, as you can see, so we have the customer profile on the right side having the most important or the highest , most significant jobs, pains and gains on the left side, the value map right by the most important products and services. Pendrick Pain relievers on game creators 18. 17: Let's summarize all the steps we have done for the value map. First, our objective was to describe explicitly. How our products and services create value are welcome was to create one page map off the value creation. The first supported was actually listing out the product and service we want to offer. So based on the customer profile, we said, OK, we're gonna offer this particular product or service. Second, we outlined the pain relievers that will relieve the pains mentioned and the customer profile. We also applying the game creators, the King critters that will create the gains expected by the customer again in the customer profile. And finally, we ranked all the products and services the pain relievers again, creators all on the order of importance. Now let's look at the most common mistakes done when creating the value map. The 1st 1 is listing out all your products and services rather than just those target at a specific segment. So you have to focus on who is the customer segment who are the group of people. We are trying to solve the problem if you and have more than one customer segment in your company or in your idea, then you'll be distracted. So you to focus on just the customer segment and make sure the products and services are aligned, where their needs or their problems. The second thing is adding products and services to the pain reliever and gain creator feels so the game creator and the pain reliever of fields. These are the characteristics of the products and services are not to be confused with the actual product and services. Third, offer pain relievers and game creators that have nothing to do with the pains and gain in the customer profile. Remember, forget all your ideas about the value map. You have to look at the customer profile first and then make sure you only mention that pain relievers and the game creators that are relevant the customer profile. Adding thing for your own head or re own ideas, your own bias may distract you from actually staying focused on what the customer really needs and finally make the unrealistic attempt toe address all customer pains and gains. As we mentioned before, It is impossible or unrealistic toe address every single customer pain and gain, so we need to just focus on the most relevant, the most important, and if we do so, the customer will be happy with our product and service. 19. 18: Now that we have completed the customer profile and the value map, we're ready to work on the fit. Our objective here is to verify if we are addressing what matters to the customer. Our outcome is connection between our products and services and the customer jobs, pains and gays making sure it all fits. So the first thing we do is to bring the value proposition nap and the customer segment profile that we have completed earlier. We put both across from each other, and then we go through pain relievers and gain creators. One by one, we check if they fit with the customer job, pain or gay. Finally, we put a check mark on each one that does this way. We were able to map out exactly the connection between each off the pain relievers and the pains, the game creators and the gains and ultimately at the end, the product on service and the job that needs to be done by the customer 20. 19: Let's look at our customer profile and value map for the Tactics Smartphone application idea. Let's try to make them fit. Now we can only achieve fit is when the customers gets excited about our value proposition , which happens on Lee will be addressed. All the important jobs the customers trying to do alleviate all the extreme pains and create essential gains that the customers cares about. So let's start with the pains. Instant booking is a pain reliever, and we matched it with winning a long time. So this is a match. The instant booking will resolve the issue off waiting a long time. The assigned driver. We assign a driver instead off to address the pain off the customer off, competing with other customers with to get a taxi. So that's also addressed. Now we go the cost system. The cost system is a way that the will be a fair for the customer to pay an amount that has already agreed upon by the system. So that's also addressed. Now we go to the cash this point we could not address, at least in this pain reliever and the pains. So this one we put an X because it needs some work. We have not addressed it reminder that we cannot address every single pain or every single gain. We do what we can, and we focus on the most significant, the most important ones. Now let's move on to the game creators and the games. So safe time. That's a gain creator that we want to offer to the customer so they can arrive on time. So this one matches next one as professional drivers. So by having professional drivers, we're gonna add some professionalism to the experience of the customer, which is something that they desire. So this one also checks out no next rating system rating system. In a way, it's a way to still make it more professional. So we make it point at the same point off professional under games because it's still under the same thing. So rating systems is a gain creator that adds value to the professional aspect that the customers looking for. Next, we have other items that aren't really fitting. So have a visual map that we describe. This is something that we said we're gonna surprise the customer by giving them something that they don't expect now, in our assumption, it might make sense or you might not. This is something to verify, but at least as far as we have, the understanding of the customer profile, it does not require something like a visual map. So you put an X on it also for a fair price and easy payment North. These are not addressed as faras the game creators. Now we don't something Europe on purpose is if you look on the pain relievers, we have no cash. This point actually could be matching with the easy payment under the, uh, the the Game creators. So sometimes you have to say, you know, repeating points from the pain relievers and the game creators. So this is a starting point. It's fine. But we have to look at it again and review each point to make sure you know, it really matches up some points again. We cannot meet. That's fine. This is the process that we follow and finding what the customer really cares about. Now, after we come to the best assumptions, we have a test, our assumptions with the customer. So you may come with, you know, the best option. The best idea came with the best. You know, Valium at the other says the customer needs to the best of your knowledge. It resolves the problems it creates, the games they're looking for, and then you wanna buy the customer from interacting with the customer. You may realize that there are some wrong assumptions, and there are some points that you got right. So what happens after we have to go back and review again all the points that we have in the value map and re evaluate our value map compared to the customer profile? As you can tell, this is a repeating process. We have to keep adjusting and redesigning until we get it right. It's, I know it's a difficult process, not easy. But this is how we get closer and closer to what the customer really wants, hoping that we can create the best product and service that would really sell, Ultimately will come up with so many different value maps or value propositions. But one of these will be the perfect fit for the customer that will really make them go crazy and be happy and be wanted to buy this product. There are three types off fit. The first thought is, Ah, problem, solution fit where we identify relevant customer job, Spain's and gains that you believe can address with your value proposition. So this is on Lee. A solution on paper that you think is, at least in concert applies. It makes us the next up of fit is more advanced. It's called the product market fit Here. Customers positively react to your value proposition, and it gets traction in the market. So this is something more advanced that now you have some interaction with the customer and you validated that they actually like this product or service. The last kind of fit is called a business model fit. Here you'll find a business model that is scalable, unprofitable, so you're validated with the customers, and now you're a point where you know it works. It makes money, and now you can easily now scale the business model of your business and grow it more and more. And you're sure that make money and said, Please, the customer all the start of fit. As you can tell, it's not final. Even if you are at the business model fit at some point, you maybe have to evaluate your business model, go back and forth to maintain that fit. So a reminder that fit is achieved when the customer gets excited about your value proposition, which only happens again when you address all the important jobs the customers looking for alleviate extreme pains they are suffering from and give them all the essential gains that they are looking for. 21. 20: there's any tool called the ad lib Value Proposition template. This tool will help us extract the value proposition from the canvas we have been working on. Our objective here is to quickly generate potential value propositions, and the outcome will be on alternative prototypes in the form of a pitiable sentences. So this sentence that you come up with you can picture to your customers to stakeholders to see how it sounds like. Are you really solving the problem of the customer that does sound appealing to them? This template can be downloaded in the resource section. Then you can print it and use for your idea. If you look at the template, you'll see there are blue little symbols under each blank space. This refer to each of the product of services, the gains of the pains, all things, the elements that we have covered in the canvas previously. So all you do is refer back to the canvas and then kind of fill in the blanks with the top or the most significant off these elements. Let's see an example to make it clear. Here's our taxi application service. Let's see how it looks like our product of services is Taxi smartphone application. It helps who. The customer segment, the taxi passengers who want to book a taxi by minimizing waiting time for a taxi and enjoying affordable prices. Unlike typical taxes services by phone. So notice how all the elements will just referred back to the canvas, and we fill them in to see how this sounds like our taxes. Smartphone application helps taxi passengers who want to book a taxi by minimizing waiting time for a taxi and enjoying affordable prices, unlike typical tax services by phone. So notice how we have been able to come up with one example. One value proposition. Of course, you could come up with any many other different variations, but now we have something we can sell. This is the up off our canvas, and you're encouraged to come up with as many ad lib value propositions as you can. This way, we have different than you contest with your customers or discuss. Discuss with your team 22. 21: congratulations. If you are here, this means you are at the end of the course. Let's summarize together what we have learned so far. We learned that the value proposition canvas helps us clarify the customer needs on how to create value for them. It's a very powerful tool that now you are ready to use. Next, we can extract value propositions using the add little. So now you can come up with very nice pitch sentences that you can share with your colleagues and your customers. From there, you can validate these assumptions by talking to your customers and see what they like, what they don't like and go from there. And lastly, you can take all the insights that you have learned by talking to customers on update on Change your Value Publishing canvas as you see fit now going back to our value design process. Now you have this amazing tool called the Value Proposition canvas, in which you can design, build and test amazing value propositions. If you want to learn more, I highly recommend buying the business model generation and the value proposition designed by Alex Faster water. These two books are the references I've used in creating the scores, and there's tons of tons of good stuff additional to what I covered in the course that you can learn. These are great references on I highly recommend them. Finally, I want to thank you personally for taking my course. It was a great pleasure, and I hope that I can be a part of your success in your next start up. If you want to connect with me, my name is a Matt safe, and you can visit my Hope site. I might save dot com or connect with me on Twitter or Lincoln. Don't forget leva. Good review. If you like the scores. And also don't forget to check out the bonus section for more additional materials. Thank you once again, and I wish you all the best on your next product or service.