+ Introduction

What is Product Market Fit?
Why is it important?
How do I separate product and market?
The PMF Journey
Assessment Exercise

+ Problem Insight

Understand your customers
In person interaction examples
Customer research tips
Personas
Empathy map
Customer journey map
Other resources

+ Value Proposition

Customer profile - pains & gains
Value map - products
Mistakes to avoid
Critical assumptions exercise
Formulate hypotheses
Exercise Sheet - Value prop canvas

+ Problem solution fit

What is an MVP?
Determine what you want to test
Marketing MVP tests
WorldCover Case Study
Product MVP tests
Other resources

+ Launch & Measure

Designing lean experiments
A/B Testing
Lean experiment examples
What metrics should I use?

+ Iterate, pivot, or persevere?

Build -measure-learn
Keep in mind
Destacame Case Study
Where to focus in pivot?
Escala Case Study
Nomanini Case Study

+ Measuring PMF

PMF path
NPS
Must-have score
Lead indicator engagement data
Engagement
Retention
How do I know when I’m at PMF?

Resources

 

Value Proposition

Now that you have a solid understanding of your target customers and their pain points, we’re going to define your value proposition using the value prop canvas, and evaluate and decide on what needs you’re going to address with an MVP.

 
  Value Proposition Design (book)

Value Proposition Design (book)

 

Jobs / Pains / Gains

Jobs

Describe what the customers you are targeting are trying to get done. It could be the tasks they are trying to perform and complete, the problems they are trying to solve, or the needs they are trying to satisfy.

 
jobs.jpg
 

Pains

Describe negative emotions, undesired costs and situations, and risks that your customer experiences before, during, and after getting the job done.  Rank each pain according to the intensity it represents for your customer. Is it very intense or is it very light. For each pain indicate how often it occurs.

pains.jpg
 

Gains

Describe the benefits your customer expects, desires or would be surprised by. This includes functional utility, social gains, positive emotions, and cost savings. Rank each gain according to its relevance to your customer. Is it substantial or is it insignificant? For each gain indicate how often it occurs.

gains.jpg
 

Products & Services, Pain Relievers, Gain Creators

Products & Services

List all the products and services your value proposition is built around. Which products and services you offer that help your customer with a functional, social, or emotional job done, or help satisfy basic needs? Rank all products and services according to their importance to your customer. Are they crucial or trivial to your customer?

 
 

Pain Relievers

Describe how your products and services alleviate customer pains. How do they eliminate or reduce negative emotions, undesired costs and situations, and risks your customer experiences or could experience before, during, and after getting the job done? Rank each pain your products and services kill according to their intensity for your customer. Is it very intense or very light? For each pain indicate how often it occurs.

 

Gain Creators

Describe how your products and services create customer gains. How do they create benefits your customer expects, desires or would be surprised by, including functional utility, social gains, positive emotions, and cost savings?  Rank each gain your products and services create according to its relevance to your customer. Is it substantial or insignificant? For each gain indicate how often it occurs.

gain creators.jpg
 

Value Proposition Canvas Mistakes to Avoid

Not looking at the tool as two separate building blocks

  • It’s two distinct elements or building blocks.
  • The circle is the customer profile, which contains only things that can be observed about a customer segment.  These things are all outside of your direct control.
  • The square is your value map, and contains the things you will design into your value prop for the customer segment. These are things within your realm of control.

Mixing several customer segments into one canvas

  • Each distinct customer segment has different jobs, pains, and gains.  If you mix, it’s hard to know which segment’s jobs, pains and gains are being observed, and hard to focus on the highest priority.
  • Rather than mixing profiles, work through the Customer Profile one segment at a time.
  • You can hang multiple value prop canvases on a wall and separate each customer segment into its own canvas.

Creating your customer profile through the lens of your value proposition

  • It’s hard to remove ourselves from the idea, product, service, or technology, so we end up filling the Customer Profile with jobs, pains, and gains we see our value proposition resolving.  This fails to identify what the customer segments really need and what really motivates their behavior
  • We need to step into the shoes of our customers.  Forget what you’re offering and look beyond what you think your value prop could address.  Look for deeper motivations. Consider using The Five Whys approach to understand what’s really driving jobs, pains, and gains

Only focusing on functional jobs

  • People often focus on functional jobs, as these are what’s most visibly apparent, while ignoring jobs that are social or emotional in nature.  For example, customers might be trying to impress their boss or neighbors, or improve their social standing. The pains associated with social or emotional jobs are often more deeply felt by customers and the gains are usually more ferociously sought after.

Trying to address every single customer pain and gain

  • It’s unrealistic to believe you can link every job, pain, and gain from the Customer Profile to the products and services, pain relievers, and gain creators.  It’s going to waste time, and likely result in a value prop that doesn’t do any one thing very well, leaving customers unsatisfied
  • The best value propositions are focused on resolving those jobs, pains, and gains that are of the highest priority to customers. You need to make tradeoffs as to which you’ll address and what you’ll forego.
 
blocks.jpg

Critical Assumptions

At this stage it’s important to define the assumptions that are most critical to your value proposition. Along the product-market fit journey, we will validate or invalidate these assumptions, and adjust accordingly. While not exhaustive for every market and model, the list below is a great starting point for most businesses.

  • My target customer will be ________
  • The problem my customer wants to solve is ________
  • My customer’s needs can be solved with _________
  • My customer can’t solve this today because ________
  • The measurable change my customer wants to achieve is _________
  • My primary customer acquisition tactic will be _________
  • My earliest adopter will be _________
  • I will make money by __________
  • My primary competition will be _________
  • I will beat my competitors by __________
  • My biggest risk to financial viability is __________
  • What assumptions do I have that, if proven wrong, would cause this business to fail? 
 

Formulate Hypotheses

A hypothesis is a simple, educated guess for what you expect to happen in a given experiment. Hypotheses are similar to assumptions, but more specific. Hypotheses should include an “if, then” statement plus a numeric target. 

Example: If we provide in-person mobile phone literacy training across 2 villages, then 25% of all smallholder farmers in those villages will download and use our app.

Before we approach building and testing a minimum product, it’s helpful to reframe each of your critical assumptions as a hypothesis that can be tested and measured through lean experiments.  The framework below can help to guide your reframing of assumptions to hypotheses: 

IF we provide _________ (solution details), THEN _________% or _________ (#) of our target customers WILL _________(what specific behavior will take place in response)_________.

 
 

Follow through the next chapter


+ Introduction

What is Product Market Fit?
Why is it important?
How do I separate product and market?
The PMF Journey
Assessment Exercise

+ Problem Insight

Understand your customers
In person interaction examples
Customer research tips
Personas
Empathy map
Customer journey map
Other resources

+ Value Proposition

Customer profile - pains & gains
Value map - products
Mistakes to avoid
Critical assumptions exercise
Formulate hypotheses
Exercise Sheet - Value prop canvas

+ Problem solution fit

What is an MVP?
Determine what you want to test
Marketing MVP tests
WorldCover Case Study
Product MVP tests
Other resources

+ Launch & Measure

Designing lean experiments
A/B Testing
Lean experiment examples
What metrics should I use?

+ Iterate, pivot, or persevere?

Build -measure-learn
Keep in mind
Destacame Case Study
Where to focus in pivot?
Escala Case Study
Nomanini Case Study

+ Measuring PMF

PMF path
NPS
Must-have score
Lead indicator engagement data
Engagement
Retention
How do I know when I’m at PMF?

Resources