12 Forms of Value Applied
o Hassle Premium
o People will pay when there’s a hassle
o Time to complete
o Confusion, uncertainty, complexity
o Prior Costly experience
o Eliminate peoples hassle, there’s opportunity.
o Perceived Value
o Value is in the eye of the beholder
§ How much customers are willing to pay
§ Satisfies core Human Drives
§ Attractive, easy to visualize end result.
o High hassle premium reducing end user involvement.
o Social Signs
§ Status seeking
o 12 Forms of Value in combination
§ Audience Aggregation
o Bundling and Unbundling
o Small and modular
§ Repurpose value for more value
§ Multiple offers in one single offer
o Cell phones (product)
o Service Plan (subscription)
o More Offers, means higher Perceived Value
o One offer split into multiple offers
§ Goal: Configure to whatever the customer wants.
o 1 MP3 vs Entire CD
o The ability to translate an idea into reality.
o Does your idea really work?
§ Show your work in progress
§ It’s a representation of the offer.
· Look for feedback
§ Define what accomplishments meets each Iteration
· Iteration Cycle
o Wigwam Method
§ Things get better over time due to inevitable change
o Watch- what’s happening, if it works, why not?
o Ideate-improvement or options
o Guess-biggest impact
o Which-changes to make
o Act-to change
o Measure-what happened? + or -, Keep or change?
o Iteration Velocity
o Google’s Approach
§ More at bats per unit of time and money.
· Iteration cycle should run as quickly as possible
o Several A Day
o Once you know what people want
§ Feedback is the core of Iteration Cycles
o Feedback from customers
o Open Ended Questions
o Listen more than talk
o Steady yourself
o Keep Calm
o Thick Skin
o Grain of Salt
o Everything makes offering better
o Pre Orders
o Test Willingness to Purchase
§ Shadow Testing
o Learn Your Barriers to Purchase
o Examine the customers alternatives
o Trade Offs
o A Decision that places a higher value on options
o Find patterns in your best customers then replicate for all.
o Economic Value
o Efficacy-how well does it work?
o Speed-how quickly
o Reliability-how reliable?
o Ease of Use-How much effort?
o Flexibility-Things it can do?
o Status-Way others perceive me?
o Aesthetic Appeal-Attractive/Aesthetically pleasing
o Cost-Give to Get Cost
o Trade Off
§ Why some things catch on and others don’t.
o Kevin Maney Says
o Quick, reliable, easy, flexible
o Quality, status, aesthetic appeal, emotion
§ Difficult to do both
o GAP INC
§ Old Navy
§ Banana Republic
· Offers different trade offs