Value Proposition / What are your customer’s pains?
2017 SA Week 2 Session 1 Review of BMC and Value Proposition by Karen Kearsley of Keysie.
Today’s class was about finding your customer’s pain point and figuring out exactly what it is you do that is unique to your business. . . otherwise known as your unique value proposition. Joey and Lianna led the class and we all took turns giving our hypothesis as to what we felt our customer’s pain point is and our unique value proposition is. In the end, we have to realize, as we start our business these value propositions are what we assume the customer wants. . . and and we should keep in mind we could be wrong with those assumptions.
If we are selling prepared food and think hungry people are your customer your are only partially correct. There are lots of places for people to find food. You have to come up with your value proposition, what makes your food special and why customers will flock to your food vs any of the many choices they already have. One classmate’s business, EMPANADA DADA, includes a food truck. He figured out a local office park only had one lousy cafeteria and no other convenient options for lunch. The people who worked at this particular office park had the pain point of no good lunch options they could reach during their lunch time. He had successfully identified one segment of his customer population and his unique value proposition was a great tasting, conveniently available, eat on the go lunch.
Now it was time for the rest of us to give it a go. There are many different types of businesses being started in our cohort. Although they are all unique, the basic business principles apply to all.
To help clarify what our unique value proposition is and who we considered our customers and their particular pain points, Joey and Lianna gave us a Mad-Lib like exercise to help us sort things out:
Helps______________ [customer segment]
Who want to ________________ [job done]
By _________ ___________ [verb & customer pain]
And _______ _________________, [verb & customer pain]
(unlike ____________) [competing value proposition]
We went around the room sharing our Mad-Libs and critiqued and helped each other broaden or narrow their customer segments. It really helped to bounce off our thoughts and ideas with Lianna, Joey and the rest of our cohort. It is so awesome to see the whole group cheering each other on and caring about each other’s success.
Joey and Lianna explained there are as many pain points as there are businesses out there and what it is you assume your customer is looking for may not actually be the case. You shouldn’t assume just because a type of business does not exist in a particular area, “If I build it, the customers will come.” They gave us an example where a restaurateur noticed there were not many healthy restaurant choices in her area. After she set up her business she found out the hard way that the population in her area didn’t care about healthy eating as the customers did not come. Had she done the research on the neighborhood, heavily populated with college students, she may had found out they didn’t have a need for healthy food, they may have had a need for cheap eats.
EforAll is helping us build our businesses by forcing us through steps every business owner should go through to make informed business decisions and avoid as many mistakes as possible. Now looking forward to our next class where we discuss how to test the hypotheses we have about our customer’s needs. Every week we are getting closer to greater success!
Check out the video: https://www.facebook.com/EforAllLowellLawrence/posts/741797586000381