12. Instruments for Customer Modeling (Customer...

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a Business 12. Instruments for Customer Modeling (Customer Development, Value Proposition Design) Prof. Dr. Uwe Aßmann Softwaretechnologie Fakultät Informatik Technische Universität Dresden 2015-0.11, 11/6/15 http://st.inf.tu-dresden.de/teaching/saab „The hard part is finding a problem to solve“ [Kevin Systrom from Instagram] 1) Customer Development 2) Value Proposition Analysis 3) Pain Analysis 4) Gain Analysis 5) Pain-Gain Banana 6) Different Kinds of Fits 1) Stickiness and Virality 7) Customer Situation Analysis 1) Customer Interviews 2) Customer Double Funnel 3) Customer Feedback 8) Channel Analysis 9) The Evolving Nested BMC Cactus

Transcript of 12. Instruments for Customer Modeling (Customer...

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a Business

12. Instruments for Customer Modeling (Customer Development, Value Proposition Design)

Prof. Dr. Uwe AßmannSoftwaretechnologieFakultät InformatikTechnische Universität Dresden2015-0.11, 11/6/15http://st.inf.tu-dresden.de/teaching/saab

„The hard part is finding a problem to solve“

[Kevin Systrom from Instagram]

1) Customer Development

2) Value Proposition Analysis

3) Pain Analysis

4) Gain Analysis

5) Pain-Gain Banana

6) Different Kinds of Fits

1) Stickiness and Virality

7) Customer Situation Analysis

1) Customer Interviews

2) Customer Double Funnel

3) Customer Feedback

8) Channel Analysis

9) The Evolving Nested BMC Cactus

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2 Software as a Business

Obligatory Literature

► A. Osterwalder, Y. Pigneur et al. Value Proposition Design. Wiley.

► [BlankDorf] Steve Blank, Bob Dorf, Nils Högsdal, Daniel Bartel. Das Handbuch für Startups – die deutsche Ausgabe von 'The Startup Owner's Manual'. Deutsche Übersetzung von Kathrin Lichtenberg. 2014. O'Reilly.

■ http://www.daniel-bartel.de/das-handbuch-fuumlr-startups.html

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a Business

12.1. Customer Modeling (Customer Development)

Find out who the customer is, what she needs and desires.. a specific part of the Lean Innovation process[Blank]

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4 Software as a Business

Q3: Blank's Customer Modeling Process “Customer Development”

1. Customer Discovery

(Customer Analysis)

2. Customer(Hypothesis)

Validation

3. Customer Creation

(Kundenaufbau)(Selling)

4. Company Building(Unternehmens-

Aufbau)

I. Customer Search

Disillusioned?StrategicChange

Verified

Found Verified

II. Customer Building

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Q3: Blank's Customer Development Process Blended with Maurya's Running Lean Process

Customer Discovery

Customer(Hypothesis)

Validation

Customer Creation(-aufbau)

Company Building(Unternehmens-

Aufbau)

Customer Search

Disillusioned?

Verified

StrategicChange

Found Verified

Customer Building

Problem-Solution Fit Product-Market Fit

Efficiency (Sell) Scale

(Startup Genome Report)

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Q4: Step 1: The Customer Discovery Subprocess (Problem-Solution Fit)

1.1 Customer Vision

1.2 Customer Interviews

(MVV testing)

2.1 Customer tests

(MVP testing)

StrategicCrisis

1. Customer Discovery

Disillusioned?

StrategicChange

Verified

MVVFound Verified

2. Customer (Hypothesis) Validation

Problem-Solution Fit

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Q4: Step 2: The Customer Validation Subprocess (Product-Market Fit)

2.1 Sales Preparation

2.1.2 IdentifyEarlyAdopers

2.1.3 OptimizationPlans and Tools

2.1.4 Sales Roadmap(Vertrieb)

2. Customer Validation

Disillusioned?StrategicChange

2.1.5 CustomerBinding and

Development

2.2 Product Development 2.3 Assessment

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a Business

12.2 Pain-Gain Analysis (Value Proposition Analysis) of Osterwalder for Customer Modeling

Value Proposition CanvasFrom “Value Proposition Design”

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Killing Pain and Filling Desire

► Customer Analysis is something different than Selling.■ Selling addresses an individual customer■ Customer Analysis analyses the world of a potential customer

► Needs do not make a customer buy – only pain.

► Value does not make a customer by – only desire.

► Blocking factors (obstacles) transform pains to gains► Goals transform future pains to future gains

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VPC

► Osterwalder refined the value proposition field of the BMC with a new canvas, the Value Proposition Canvas.

Pain and Gain create value proposition.Pain and Gain create value proposition.

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TU Dresden, Prof. U. Aßmann Earning money with softwarehttp://businessmodelalchemist.com/

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VP Canvas Process

► VPA uses a canvas to map the customer pains and gains to products and services

Productsand ServicesQuestions

GainGain Questions

Customer Job/SituationQuestions

Gain creatorQuestions

PainsPain Questions

[Osterwalder-OPC]

Pain relieverQuestions

Customer ProfileValue Map Value Proposition

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VP Canvas Mapping and Fit

► VPA creates mappings between the entries of the customer profile and entries of the value map (value proposition fit)

► Check completeness, consistency of fit!

Productsand ServicesQuestions

GainGain Questions

Customer Job/SituationQuestions

Gain creatorQuestions

PainsPain Questions

[Osterwalder-VPD]

Pain relieverQuestions

Customer ProfileValue Map Value Proposition

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VPC is a Subcanvas of the Business Model Canvas

Key Partners CustomerRelations

Customer Segments

Key Activities

Channels

[Osterwalder-BMC]

Key Resources

Customer ProfileResources

Value Proposition(Wertangebote)

Costs Revenues

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The Evolving BMC-VPC Canvas Cactus (extended)

► Growing a tree with side edges (link tree - cactus) out of a first version■ Assess with red-yellow-green; choose a current “greenest” “champion”

► Every step tests hypotheses about the customer► Not too many canvases are kept active (small dashboard)

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BMC-VPC Refinement is Customer Modeling

► The BMC-VPC cactus evolves during customer modeling

A red BMC-VPC shows why a persona cannot become a customerA red BMC-VPC shows why a persona cannot become a customer

A green BMC-VPC models a customer faithfullyA green BMC-VPC models a customer faithfully

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a BusinessFakultät Informatik Institut Software- und Multimediatechnik, Lehrstuhl Softwaretechnologie

12.3 Pain Analysis with Different Types of Pains

• .. diving into the VPC

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18 Software as a Business

The Pain Hierarchy: Pain Drives Selling and Buying

► For business, find a good pain.

A blocking factor is an immediate problem to be removed

A fear of catastrophy sells almost always

A clear catastrophy or force sells.

A fear of force sells almost always

A clear pain is half the business

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19 Software as a Business

Problem Interview Scripted Questions

► Status Questions: ■ Tell me about how do you do $Topic today.■ Do you use any $TOOLS/$PRODUCTS/$APPS/$TRICKS to help you get

$Topic done?■ Tell me more about how the process $Topic goes■ Who is involved in making this decision?

► Questions about Past:■ Last time you did $Topic, what were you doing right before you got started? ■ Last time you did $Topic, how long did it take?■ Last time you did $Topic, how much did it cost?■ Where did you most recently go to buy $Topic?■ May I ask, why did you come to that conclusion?■ Once you finished, what did you do afterwards?

► Wishful thinking with “what-if questions”:■ If you had a magic wand and were able to do anything you cannot do today,

what would it be? (gute Fee)■ Is there anything else I should have asked about $Topic?

[Alvarez]

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20 Software as a Business

► Pressure and awareness are two important factors influencing customer decisions. Their product determines decisions

► Problems with high pressure and awareness MUST be solved and lead to buy decisions

► A Need is a measure to solve a problem

Pain analysis in the Pressure/Awareness-Product (Pain Portfolio)

Fear of Future Problem

Clear NeedsClear Needs

Force (presses)

Force (presses)

Hidden NeedHidden Need

Hidden Problem

(grumbling)

Hidden Problem

(grumbling)

Catastrophy(kills)

Catastrophy(kills)

Future Catastrophy

Present Problem

Hidden Problem

Future PainFuture Pain

Awareness

Pressure

Clear Vision of Future Need

Clear Vision of Future Need

Clear ProblemClear Problem

Risk(dangerous)

Risk(dangerous)

Death march(I will die)

Death march(I will die)

Pain(hurts)

Pain(hurts)

Future ForceFuture ForceFuture ForceFuture Force

BlockingFactor

BlockingFactor

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21 Software as a Business

Examples of Future Force

► New country-wide governance rules■ New finance rules of tax authorities■ Laws (e.g., the EU law on dynamite)■ New taxes, raise of taxes

► New social governance rules■ Gender equality issues■ Quotas

► Health problems: Age, illness, Alzheimer, heart attack

► Future Force of Competition Change■ New competitors and competing products

. USP and UCA gets lost■ New business models of competitors

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How to Achieve Disruptive Innovations (Game Changers)

► A Blocking factor is a (hidden) problem directly hindering that the goal of the customer is reached

► A Blocking factor remover (block remover, overcomer) is a special kind of pain killer, applicable to different types of innovations

■ It enables a discontinuous revolutionary, radical innovation (enabler for a discontinuous innovation)

■ A discontinuity enabler (blocking factor changer) is a pain killer removing a blocking factor that leads to a change in a market

■ A disruption enabler (game changer): It may even enable a disruptive innovation

► An innovative company should work on blocking factor removers and game changers

► Questions for Game Changers:■ What blocks the radical innovation? ■ What blocks the disruptive innovation?

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23 Software as a Business

Pain Analysis and Pain Priority List

► The pain priority list is a list of pains prioritized by pressure-awareness product from the pain portfolio

► Produce with G-A-P analysis: Generate pains, Assess them, Prioritize them

Problem Pressure Awareness Pain Priority

tooth pain 10 10 100

tooth inflamation 10 5 50

tooth hole 3 8 24

weak tooth health inherited

1 1-5 1-5

ignorance of health measures

1 1 1

forgetting to brush teeth

1 4 4

eating too much sugar

1 3 3

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24 Software as a Business

Exc.: Classify: is it a Problem, Need, Pain, Catastrophy? Determine Pain Priority

► Climate catastrophy

► Deodorant

► Partnership portals

► Islamistic terrorism in the West

► Odol mouth water

► Glasses

► Attack on your software ■ threat modeling, attack modeling

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25 Software as a Business

Getting Research Funding with Pain

► Funding for the Climate Catastrophy

► Funding for the Hadron Collider■ Gain: World formula

► Funding for the Energiewende

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26 Software as a Business

Pain Canvas

► A problem hypothesis is tested in pain analysis. If it is validated, it becomes a tested (real) pain (fact).

► A pain canvas (problem classification canvas) classifies the problems into different classes of pains

► It forms the left part of the Pain-Gain Banana and can be used for ■ Stating a problem hypothesis in VPA■ Specifying questions for costumer interviews■ Preparing selling and sales interviews.

► The problem canvas is derived from different sources, e.g., SPIN, Maslow, ZOPP

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27 Software as a Business

Pain Canvas (Problem Classification Canvas)

► Put a problem first into the “General” or “Background” field, then classify it (from left to right)

► Think about which stakeholder has which objectives

► First untested, then tested

BackgroundState

PainsHidden effects(implication)

Catastrophies

Blocking factorsRisks

PainsMood Problems Value Proposition

ObjectivesGeneralProblems

Outer Forces

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28 Software as a Business

Pain Killer Canvas

► By adding pain killers, the Pain Canvas can be extended to the pain killer canvas

BackgroundState

PainsHidden effects(implication)

Catastrophies

Pains and Pain KillersMood Problems Value Proposition

ObjectivesGeneralProblems

Blocking factorremover

Catastrophyavoider

Pain killer

Problemhandler

Blocking factorsRisks

Outer Forces

Forcehandler

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a Business

12.3.2 Pain Management

•Like Risk management (→ course Softwaremanagement)•Put up a PDCA process•Identify pains, assess pains, classify pains with pain portfolio and Problem canvas

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30 Software as a Business

Pain Management with Pain Diary, Pain Sheet, Pain Priority List, Pain Canvas, Pain Killer Canvas

► A pain diary is a diary in which all problems, pains, deficiencies of techniques and tools are recorded day by day

► A pain sheet [Bosworth] suggests this 3-step table (reasons → impact → capabilities) for thinking about the pains of the customers

► A pain priority list ranks all known pains with a priority (product awareness * pressure)

► An untested pain canvas classifies all pains into different classes, but is untested

► A tested pain canvas has verified hypotheses about the pains

► A pain killer canvas is a tested pain canvas with annotated pain killers

CapabilitiesImpactReasons

Pain portfolio

AnnesGedanke

Pain priority

list

Untested pain

canvasPain diary Pain sheet

Pain identification Pain classification

Pain prioritization

Tested pain canvas

Pain killer canvas

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a BusinessFakultät Informatik Institut Software- und Multimediatechnik, Lehrstuhl Softwaretechnologie

12.3. Gain Analysis

.. different kinds of gains...

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32 Software as a Business

Gains/Value

Desire (Sehnsucht)

Hope

BenefitBenefit

Hidden ValueHidden Value

ParadiseParadise

Future Paradise

Present ValueHidden Value

Future GainFuture Gain

Awareness

Pressure

FeatureFeature

Clear Advantage

Clear Advantage

► Hope is a strong motivation

► Hidden value is implicit gain

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33 Software as a Business

Exc.: Classify: is it a Gain, Benefit, Desire? Determine Gain Priority

► Hadron Collider

► Google Glass

► Mobile phone

► Tablet computer

► Communism

► Socialism

► Vom Tellerwäscher zum Millionär

► Lottery

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a BusinessFakultät Informatik Institut Software- und Multimediatechnik, Lehrstuhl Softwaretechnologie

12.4 Pain-Gain Analysis with the Pain-Gain Banana

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35 Software as a Business

Severity Levels of Pain

► Pains are differently severe. The following levels can be distinguished:

NeedsNeeds

ForcesForces

Implicit NeedsImplicit Needs

CatastrophyCatastrophy

PainPain

Desire fillerDesire filler

AdvantagesAdvantages

Implicit GainsImplicit Gains

Features of ProductFeatures of Product

Explicit Benefit/GainExplicit Benefit/Gain

► Gains are differently severe. The following levels can be distinguished:

Pain killerPain killer

Competitive AdvantageCompetitive Advantage

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36 Software as a Business

Pain-Gain-Banana Canvas

► The Pain-Gain Banana canvas can be used for customer pain analysis■ Alternative to the VPC■ Canvas transforms hidden pains to competitive gains■ Derived from SPIN® selling, ZOPP, NABC and VPC

► Blocking factors directly transform pains to gains

► Goals transform future pains to future gains

► Catastrophies require urgent action

36

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37 Software as a Business

Pain-Gain-Banana Question Canvas

Backgroundquestions

ProblemquestionsGoal

questions

Hidden-Effect(Implication)

questions

Pain questions(Cost, Hinder)

Benefit-for-Cost questions

Obstacle – Blocking Factor

questions

Pain killers(benefits for cost)

NeedsNeeds

Advantages

Features

Benefits/Gains

PainPain

Implicit NeedsImplicit Needs

Competitive Advantage

Customer feels pain

Competition

Seller knows need

Customer knows blocking factors

Catastrophy questions

Catastrophy avoiderCatastrophyCatastrophyCustomer fears catastrophy

Force question ForcesForces EscapesCustomer knows force

CompetitionCompetition

Blockingfactors

Blockingfactors

Customer pain knowledge

Customer gainknowledge

Overcomer

Questions

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38 Software as a Business

Pain-Gain-Banana Stripped Form

Pain killers(benefits for cost)

NeedsNeeds

Advantages

Features

Benefits/Gains

PainPain

Implicit NeedsImplicit Needs

Competitive Advantage

Competition

Catastrophy avoiderCatastrophyCatastrophy

ForcesForces Escapes

CompetitionCompetition

Blockingfactors

Blockingfactors

Customer pain knowledge

Customer gainknowledge

Overcomer

Questions

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a BusinessFakultät Informatik Institut Software- und Multimediatechnik, Lehrstuhl Softwaretechnologie

12.5 Different Kind of Fits in the Value Proposition Design Process

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40 Software as a Business

Stages of Fitness

Product-Market

Fit

Problem-SolutionFit

(Vision Fit)

Business-Model-Venture-Capital

Fit

Scale Fit(Virality)

Lean Innovation Process

Fitness stages

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41 Software as a Business

Steps in the Stages of Maturity

Product-Market

Fit

Problem-SolutionFit

Business-Model-Venture-Capital

Fit

Scale Fit(Virality)

Lean Innovation Process

Fitness stages

red yellow green red yellow green red yellow green red yellow green

Example

► A yellow BM-VC-fit is a BM that has been matured after one round of correction by the Vcs

► A green problem-solution fit is a value proposition stable pain/gain analysis, but without services and products

► A green product-market fit is a value proposition stable pain/gain analysis with services and products, i.e., a stable BMC

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a BusinessFakultät Informatik Institut Software- und Multimediatechnik, Lehrstuhl Softwaretechnologie

12.5.2. Stickiness and Virality

.. how to achieve that the news spreads itself(how to achieve mouth-to-mouth words)

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44 Software as a Business

Virality

► A viral product/service is one about which news spreads easily, because people talk about it.

For virality, increase the pain priority, gain priority, and UCA.For virality, increase the pain priority, gain priority, and UCA.

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46 Software as a Business

Pain-Gain-Stickiness

A sticky product/service has high pain and gain priority.(green: infectious)

A sticky product/service has high pain and gain priority.(green: infectious)

iPadiPad

New tooth pasteNew tooth paste

e-Cigarettee-CigaretteE-call in Car

NavigatorNavigator

Gain priority

Pain priority

LipstickLipstick

iPodiPod

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47 Software as a Business

Pain-Gain-UCA-Virality

iPadiPad

New tooth pasteNew tooth paste

e-Cigarettee-CigaretteE-call in Car

NavigatorNavigator

Gain priority

Pain priority

LipstickLipstick

iPodiPod

A viral product/service has high pain, high gain priority, and high (ultimate) competitive advantage.(visualized here with size of green boxes)

A viral product/service has high pain, high gain priority, and high (ultimate) competitive advantage.(visualized here with size of green boxes)

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48 Software as a Business

The “Lean Analytics” Stages and Their Metrics

Revenue

Viraility (real pain, real gain, UCA)

Stickiness (will the dogs eat dog food? Real pain, real gain)

Empathy (Tested Value Proposition)

Scale

[LeanAnalytics]

► The Lean Analytics Stages are a simple stage system for product/service product-market fit.

► [LeanAnalytics] contains metrics for every stage

Problem-solution fit

Product-market fit

Scale fit

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49 Software as a Business

The Pirate Metrics AARRR for Web Site Visits

Revenue (does a visitor pay?)

Retention (stickiness) (does a one-time visitor return?)

Activation (which activities do they start on your website)

Acquisition (how do customers know from you?

Referral (does a visitor recommend your website)

[LeanAnalytics][Dave McClure http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version]

► “Even pirates need metrics.” (Dave McClure)

► Example: the story of Dropbox – starting with a smoke video of a non-existing product■ http://techcrunch.com/2011/10/19/dropbox-minimal-viable-product/

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a BusinessFakultät Informatik Institut Software- und Multimediatechnik, Lehrstuhl Softwaretechnologie

12.7 Analysis of the Customer's World

Before understanding the pain and gain of the customer, we need to understand its world

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51 Software as a Business

The Major 4 Obstacles to Customer Know-How Can Only Be Remedied by Testing the Customer Hypotheses

► In a group, untested information about the customer can be collected by canvases

► Hypotheses about the customer have to be formed► Hypothesis must be tested by getting out of the building

[Alvarez, Blank/Dorf]

Engineer'sIgnorance

Self BiasIgnorance of

Customer Search

Bias towards one's own great idea and technology

Being an engineer seduces to skip validating ideas

Ignorance to know how to find customers

Ignorance ofStart

Ignorance to know how start

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52 Software as a Business

Empathy Map for Customer Modelling

Prof

. U

. Aßm

ann,

TU

Dre

sden

52http://blog.8thcolor.com/2011/08/who-are-our-posible-customers/empathy_map/

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53 Software as a Business

Simpler: Modelling the Customer's Feelings

Prof

. U

. Aßm

ann,

TU

Dre

sden http://mw2013.museumsandtheweb.com/

wp-content/uploads/2013/02/mitroff.fig2_.jpg

http://www.johndoyle.ie/?p=92

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54 Software as a Business

Modeling the Customer's DayHow should a good “Customer Day Canvas” look?

Night MorningBreakfast

MorningWork Lunch Afternoon

Work

Dinner EveningHome

EveningOut Go to Bed Falling

Asleep

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55 Software as a Business

Customer Analysis with Maslow

► Play your customer …. and fill a Maslow pyramid

http://upload.wikimedia.org/wikipedia/commons/thumb/2/2c/Erweiterte_Bed%C3%BCrfnishierarchie_%281970%29_nach_Maslow.svg/600px-Erweiterte_Bed%C3%BCrfnishierarchie_%281970%29_nach_Maslow.svg.png

physiologic

safety

social esteem

love/belonging

cognitive

esthetics

self realization

transcendence

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57 Software as a Business

Analyzing the Customer's Relationships

► An organizational / influence map draws the network of the customer that can influence his buy-no-buy decisions

► Analysis can start with a table or a graph

► Analysis constructs a dependency graph (partial or total order)

► Deciders are the sinks of the dependency graph

[Blank/Dorf]

Managerial Technical Financial

High Department boss

Accounter

Middle Engineer

low Project leader End user

1 2

3

4 5<<depends on>>

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58 Software as a Business

Customer Relationship Analysis with Business Model You

► Play your customer …. and fill a BMY Canvas.

Key PartnersWho helpsYour customer?

CustomerRelationshipsHow does sheinteract?

Customer SegmentsWhom doesYour customer help?

Key activitiesWhat do Your customer do?

ChannelsHow do they know him?How does shedeliver?

Key ResourcesWhat she isand has

Value PropositionHow does Your customer help?

Cost StructureWhat does he give?

Revenue StreamsWhat does she get?

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59 Software as a Business

Customer Profile (Persona)

► A Customer Persona (profile, archetype) is a story about an average customer from a customer segment.

■ Derived from Empathy Map, Influence Map, VPA, Problem Analysis, Customer's Day, Customers influence map

► Table form of Persona:

Highlights in the customer's day, problem canvas, VPC, or influence map

Hints for aquisition

Gets up with difficulties Don't call him before 10:00; send him a coffee kit for advertisement

Doesn't like to read Send him a DVD with video

Has friends in political party PDU Analyze partie's opinion about the effects of your product

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60 Software as a Business

The Market Slices (Customer Segments)

Target Person Group

Target Market (TM)

Served Adressable Market (SAM)

Total Adressable Market (TAM)

Target Person Profile (Persona)

[Blank/Dorf]

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a BusinessFakultät Informatik Institut Software- und Multimediatechnik, Lehrstuhl Softwaretechnologie

12.7.2 (Potential) Customer Interviews as Simple Tests for Hypotheses

Interviews are the fastest, cheapest way to learn more about what your customers are doign and what problems they're facing. [Alvarez]

People will talk to you because we all like to help others, like to sound smart, like to fix things, and like to complain. [Alvarez]

It's not the customer's job to know what they want. [Steve Jobs]

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62 Software as a Business

Forms of Interviews

Problem Interview

Finding out the customer's problems and pains

Filling a problem canvas

Solution Interview

Finding out which solutions and gainsthe customer needsFilling a VPC canvas

SPIN interview

Walking with the customer from implicit needs to explicit needs

[RunningLean, Alvarez, Rackham, Bosworth]

Solutions Selling Interview

Walking with the customer from reasons to capabilities

Pain-Gain Banana Interview

Walking with the customer from hidden needs to competitive advantage

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63 Software as a Business

Problem Presentation [Blank/Dorf]

► The problem presentation shall help to find information from the customer about his problem.

■ It presents the current state of problem hypotheses in form of a problem-solution list

■ It shall ask questions for problem analysis and VPA, preferably prepared by filling the canvases before

■ Using “What-if”-questions■ Using “Hidden-effect”-questions■ Using “Cost” questions■ Using “Pain” questions

Problem Solution Today Solution tomorrow

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a BusinessFakultät Informatik Institut Software- und Multimediatechnik, Lehrstuhl Softwaretechnologie

12.7.3 Customer Feedback

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65 Software as a Business

Customer Feedback Opportunities

► Domain-specific Fairs are a good place to meet domain experts

► User Days: allow for questions and discussions with customers

► User Conferences with talks■ Exhibit or give a talk at a potential OEM's conference

► At the beer: customers are honest

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66 Software as a Business

Customer Discovery Report Table [Blank/Dorf]

► The report table estimates with school grading the maturity in the customer funnel of all potential customers.

► School grading can be 1-3, 1-5, 1-16, 1-100

Customer Enthusiastic

Urgently needed

Importance of effects

Improvised solution

120 days Importance of Decider

120x2 total

Miller 1 1 3 5 5 1 10 26

Bush 1 2 4 5 1 3 2 18

Clinton 5 3 1 1 1 1 2 14

Trump 2 2 4 3 3 5 6 25

Average 2,25 2 3 3.5 2,5 2,5 5

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a BusinessFakultät Informatik Institut Software- und Multimediatechnik, Lehrstuhl Softwaretechnologie

12.8. Channel Analysis

How does your product arrive at the customer?

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69 Software as a Business

Channel Flipbook Canvas [LeanAnalytics]

► Put a problem first into the “Product Type” or “Service Type” field, then think about acquisition, selling, revenue, and delivery

► Subcanvas of BMC for filling Channel and RevenueStream

AcquisitionChannel

Revenue modelSelling tactic Delivery Model

Product TypeService Type

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a BusinessFakultät Informatik Institut Software- und Multimediatechnik, Lehrstuhl Softwaretechnologie

12.8.1 Keeping the Customer with Double-Funnel

How do you bind the customer? (Stammkunde)

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71 Software as a Business

Customer Double Funnel Canvas (Startup Funnel Board)

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72 Software as a Business

Blank/Dorf Double Funnel

► Cold customer aquisition is 10 times more difficult than customer binding

Consideration

Interest (Aquise)

Purchase(Activate)

Awareness

Blank's Double Funnel

Bind

Up-selling

Next-selling

Cross-selling

Referral

Customer relationship management

Customer bonus programs

Customer feedback programs

Blogs, twitter, facebook, emails

Loyality programs (birthdays...)

Rabatt-Programs

Product updatesCompetitions

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Fakultät Informatik - Institut Software- und Multimediatechnik - Softwaretechnologie – Prof. Aßmann - Software as a BusinessFakultät Informatik Institut Software- und Multimediatechnik, Lehrstuhl Softwaretechnologie

12.9. The Evolving Cactus of the Nested BMC

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74 Software as a Business

The Dependency Structure of Canvases (the Nested BMC)

► How would you maintain an evolving cactus for all these canvases?

BMC

VPC

Customer JourneyCanvas (CJC)

ReqEC

ChannelFlipbook Canvas

Pain CanvasPain Killer Canvas

Pain-GainBanana

Pain Portfolio CustomerEmpathy Map

CustomerBMCY

Customer DoubleFunnel Canvas

SPIN™ Canvas

Solution Selling™

Canvas

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75 Software as a Business

The End

► Explain the difference between customer empathy, activation, stickiness, virality and referral.

► What is the difference between untested, assessed, and tested canvases?

► What is a strong real tested pain?

► Why are catastrophies better for a good value proposition than blocking factors?

► Explain the influence of the UCA for virality.

► Why is the pirate metrics important for building good value propositions?

► How can you cross the border between Virality and Revenue in the LeanAnalytics stages?

► Explain the differences between the SPIN™ Canvas and the VPC. Which canvas do you prefer for a cold call?

► Explain how you use the Channel Flipbook Canvas, the Customer Empathy Map and the Customer Double-Funnel Canvas for a Customer and Customer-Segment Analysis.