4th users and benefits

Users and Benefits

By Liz Taylor

By the end of this session

• You will understand the difference between features and benefits

• You will learn about the science of customer discovery

• You will learn about product life cycles and how users can change overtime

Pen

Features• Has a lid • Has a clip • Made of plastic • No wires • Contains ink

Benefits• The pen doesn’t dry out • The pen doesn’t get draw

in your bag • Can place in/ on your

jacket • Unlikely to break in bag • Portable • No Mess

Features Benefits

The Science of Customer Discovery

www.sheffield.ac.uk/enterprise

We define a problem


We form a hypothesis


We make observations and perform experiments


Eureka!


Planning a project or a business is EXACTLY The same


Customer Discovery

(or market research)


Customer Discovery is just like any other research you undertake

• You form a hypothesis • You read some journals/books etc. • You undertake some tests/experimentation • You interpret these results to prove, refute or

refine your hypothesis

It is an iterative process


What you are trying to find out on this journey is: • Who are your customers? • Why would they come to your event? • What problems or needs do they have that your

event might solve? • What will your customers gain from going to

your event?


Customer discovery helps you to create and test your value proposition

Hypothesise the customer discovery journey

You need to start with a hypothesis, a set of assumptions about your customers. You may validate some of these assumptions using secondary market research

• Who are your customers? • Why would they come to your event? • What problems or needs do they have that your event

might solve? This all leads to us developing a hypothesised Value Proposition

Secondary Market ResearchThis is essentially what you do at your desk: Google is your friend

Who is your users? How big is your potential market? What events are happening already in that market? What does the market typically pay for your event? How frequent are these events?

But this doesn’t really do more that develop your hypothesis – how do you test it?

Value Proposition

So: • You have an idea for an event or project • You think your event is better, cheaper,

more convenient than others in the market. You have hypothesised a solution

• We observe and test the market to create a Value Proposition by doing…

Primary Research

This is essentially direct contact with your potential customer base

Primary research is often the bit entrepreneurs are most intimidated at doing and yet the most important. Without primary research you are risking all on gut instinct .

Primary Research

• Face to face discussions – get to know your potential customers

• Online surveys – useful but response rates can be low

• Test trading – give it a go. Is this always possible?

• Mystery shopper – a bit of industrial espionage


Customer interviews are ESSENTIAL

But its important they are done right or you risk wasting your time and theirs, or even worse going to market with something no one wants to buy.

http://www.youtube.com/watch?v=KZYntTU3JW4





Customer interviews

1) “Tell me about the last time…” 2) “Yes, and…”3) The 5 Why’s.4) “Tell me more about that.” 5) “What do you mean by…”6) How are you dealing with the problem now?7) Silence is golden.

Who are the main users of this?

Back in time…

http://www.youtube.com/watch?v=GzbEHCZwgPE • What are the differences between each of

the adverts? • Why do you think they changed each

advert? • Did they change the product?

http://www.youtube.com/watch?v=GzbEHCZwgPE

You should now have

• A better idea of the differences between features and benefits

• Understand the real value of customer discovery

• Understand that users might change- this could be down to the product life cycle

Any Questions?

Education

4th users and benefits