12 Forms of Value Applied

12 Forms of Value Applied

o   Hassle Premium

o   People will pay when there’s a hassle

o   Time to complete

o   Effort

o   Distraction

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   Modularity-Legos

o   12 Forms of Value in combination

§  Example

·      Magazine

o   Subscriptions

§  Audience Aggregation

o   Bundling and Unbundling

o   Bundling

o   Small and modular

§  Repurpose value for more value

§  Multiple offers in one single offer

·      Example

o   Cell phones (product)

o   Service Plan (subscription)

o   More Offers, means higher Perceived Value

o   Unbundling

o   One offer split into multiple offers

§  Goal: Configure to whatever the customer wants.

·      Example

o   1 MP3 vs Entire CD

o   Prototype

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

o   Website

§  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

§  Iteration

o   Small

o   Clear

o   Quick

o   Once you know what people want

o   Go

§  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   Alternatives

o   Examine the customers alternatives

o   Trade Offs

o   A Decision that places a higher value on options

§  Economic

§  Temporal

§  Effort

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   Emotion-Feeling?

o   Cost-Give to Get Cost

o   Trade Off

§  Why some things catch on and others don’t.

o   Kevin Maney Says

o   Convenience

o   Quick, reliable, easy, flexible

o   Fidelity

o   Quality, status, aesthetic appeal, emotion

§  Difficult to do both

·      Example

o   GAP INC

§  Old Navy

§  Banana Republic

§  Gap

·      Offers different trade offs