Lean ITP class 2: Customer Segments, Value Proposition exercises

1. Class 3 / 12
February 23, 2015
Jen van der Meer | jd1159 at nyu dot edu
Josh Knowles | chasing at spaceship dot com
LEAN
LAUNCHPAD
AT NYU ITP

2. 6:30 – 7:30
Team presentations
7:30 – 8:00
Overview and User Profiles
8:00-8:15
Break
8:15-8:45
Customer Exercise
8:45 – 9:15
Value Proposition Exercise
TODAY:

3. .
CLASS TIMEFRAME 2015
2/2
Business Models
Customer Development
2/9
Value Proposition
Research tools
2/16
President’s Day
2/23
Customer Segments
Research Tools
3/23
Spring Break
3/9
Customer Relationships
Product Development
3/23
Resources
Activities + Costs
3/30
Product Development
UX and User Interface
Design
4/6
UI UX Part 2
4/13
Product Development
User test
4/20
Product development
4/27
Product MVP
May!
Delicious Celebration
Lessons Learned
3/2
Revenue Streams
Distribution Channels

4. 4

5. FOUNDERS DILEMMA

6. Founder’s Dilemma. Noam Wasserman.

7. CUSTOMERS

8. Business model hypothesis
CUSTOMER DISCOVERY: PHASE 1
Market
Size
Value Prop
1 Product
MVP
Customers
Who/Probl
em
Channels
Value Prop
2
Key
Resources
Partners
Revenue
Value Prop
Low Fidelity
MVP
Customers
Source/Wi
ring
Channels
Market
Type
Customer
Relationship
Traffic
Partners
Pricing
PhysicalChannelWeb/MobileChannel

9. MARKET SIZE
TAM: Total Available Market
Total Market Size Available TODAY
TAM: Total Available Market
Total Market Size Available TODAY

10. MARKET SIZE
SAM: Servicable
Available Market
Focus on Your Own
Technology/Services

11. MARKET SIZE
Target Market:
What realistic
market share
can be
obtained

12. Super user
Early evangelist
Willing to spend money for an incomplete, buggy, barely
functional product
YOUR FIRST TARGET CUSTOMER

13. Where are they in life?
Where would you find them?
What are their needs? Why are these their needs?
How are they solving the problem now?
WHO IS HE/SHE?

14. Segments are clusters of customers with unique behaviors.
Before you are able to analyze buying, usage, and referral
data, your segmentation will be a hypothesis, based on:
• Demographics
• Psychographics/
• Technographics
• Behavioral
CUSTOMER SEGMENTS

15. BEFORE THE
WEB: SURVEY BASED
SEGMENTATION

16. 1. Define hypotheses of unique customer segments
2. Choose 2-3 to test
3. Develop a user story for each
4. Develop a value proposition for each
5. Determine profit potential for each
TESTING CUSTOMER SEGMENTS

17. VALUE PROPOSITION FIT

18. CUSTOMER SEGMENTS: WHAT ARE
THEY SEEKING?

19. PRODUCT VISION
Ultimate Product Vision
Product Features
and Benefits
MVP

20. A concise summary of the smallest possible group of
features that will work as a standalone product while still
solving at least the core problem and demonstrating the
product’s value.
MVP is:
• A tactic for cutting back on wasted development hours
• A strategy to get the product into earlyvangelists hands
as soon as possible
• A tool for generating maximum customer learning in the
shortest possible time.
MVP

21. VALUE PROPOSITION CANVAS

22. WHAT CAME BEFORE STEVE AND ERIC
22

23. .
NEXT WEEK PREP:
Watch Lecture Customer Relationships—take the quiz
Watch Lecture Partners
Read: Business Model Generation 180-225
Optional Reading: Lean Analytics by Alistair Croll and Ben Yoskovitz
overview.

24. .
NEXT WEEK PRESENTATION:
5 people customer discovery interviews
Prepare a presentation – guidelines below:
· Cover slide
· Latest version Business Model Canvas with changes marked
· Market size (TAM, SAM, Target Market)
Total addressable: how big is the universe
Served available market: how many can I reach with my sales channel?
Target market: who will be the most likely buyers?
· Propose experiments to test your value proposition. What constitutes a
pass/fail signal for each
test?