Step 8: Quantify the Value Proposition

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

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

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

Overview 3 Simple Categories Better Faster Cheaper December 1, 2018

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

.. 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

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

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

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

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

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

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

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

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

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

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