Beyond Market Research: Customer Empathy Maps and the Business Model

Transcription

1 Beyond Market Research: Customer Empathy Maps and the Business Model A UNC BizHub Munch and Master January 30, 2014 Greeley, Colorado John Latham, PhD, CQE Organization Architect + Social Scientist john@johnlatham.me Randy Cox CEO, Co-Founder randy@virtjoule.com Ryan Speir Executive Director ryan@uncbizhub.org

2 Business Model - The Basics Key Activities Customer Relationships Key Partners Value Propositions Customer Segments Key Resources Channels Cost Structure Revenue Streams This work (template) is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

3 Business Model - Example Designed by: Randy Cox, Landon Cox, and John Latham Key Partners Key Activities Value Propositions Customer Relationships Customer Segments - Verizon provides cellular network for telemetry data from sensor to server - Verizon is also lead generator - Amazon provides server for data storage and delivery - Nova Engineering provides circuit boards - Insurance (general liability and errors and omissions) - Lead generation - Qualify leads - Sales - Manufacturing + Assy - Fulfillment (pack + ship) - Installation - Baseline Analysis - Analysis + Alerts - Product Development - System Maint + Repair - Case Studies + PR Key Resources - 2 People (CEO + CTO) - Internal Funding (no VC) - Light design + manufacturing space Improved Operations - Reduced Energy Usage - Reduced GHG Emissions - Increased Asset Life - Reduced Operating $$$ Preventive Maintenance - Prevent Catastrophic Fail - Reduced Downtime - Reduced Repair Cost $$$ Business Continuity - Reduced Response Time - Reduced Perishable Loss - Reduced Downtime - Reduced Cust Impact - Reduced Failure Cost $$$ More Savings than Cost!!! Vibration Data is FREE!!! Personal Assistance Dedicated Personal Assistance Expert to Expert Automated Services Self Service Channels Verizon Personal Networks One on One Referrals Trade Publications Trade Associations Web/Blog Advertisements Owners Facilities Managers Resellers Manufacturers (e.g., HVAC) Cost Structure Revenue Streams This work (template) is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. Content (c) Virtjoule, Inc All Rights Reserved

4 Value Propositions - Example Improved Operations Preventive Maintenance Business Continuity Benefits - Reduced Energy Consumption - Reduced GHG Emissions - Increased Lifetime of Asset - Reduced Operating Cost $$$ - Prevent Catastrophic Failure - Reduced Downtown - Reduced Cost of Repair $$$ - Reduced Response Time - Reduced Perishable Loss - Reduced Downtime - Reduced Customer Impact - Reduced Failure Cost $$$ Why Diagnostics Data Early Warning Data Realtime Failure Data Products Vibration Data from Virtjoule Sensors on Multiple Display Devices (ipad, iphone, Computer...) What Vibration Data Delivery Process Amazon Server How Virtjoule, Inc. (c) All Rights Reserved Cellular

5 Empathy Map - Example Researchers: Randy Cox, Landon Cox HEAR? Influencers community Boss/ shareholders ROI loans Friends Quality Issues Influencers nearby businesses Influencers services Community Perception Friends We want different products Influencers suppliers I am loyal to people and services that help me Worries About Employees Influencers other people like me Financial Security Public we re one of you Profit Public we care about the environment THINK and FEEL? Growth Owners I need help SAY and DO? Worries Business Disruption Preoccupied w Operational Problems I am cheap Appearance I like what I do Business Survival Worry Failure Environment All types of competitors Market I try to get and maintain relationships Friends other business people Environment Daily operations challenges Offers Everyone wants a piece of me Friends customers SEE? Pain Obstacles Cash Flow Frustrations Day to Day Grind Fears Business Failure Obstacles Not enough savings Frustrations Getting good help you can trust Gain Achieve security Measures survival Measures have I done good? Measures have I provided for my family? Adapted from Business Model Generation by Alex Osterwalder and Yves Pigneur, Wiley, ISBN: , p. 130 Content (c) Virtjoule, Inc All Rights Reserved

6 Empathy Map - Example Researchers: Randy Cox, Landon Cox THINK and FEEL? HEAR? Boss Let s save money for owners Avoiding problems Pleasing the boss Preoccupation Complaints Saving Money Worries Do I look bad? Preoccupation New project / company growth topline Worries Technology Market offers Expensive services SEE? Market Complicated solutions Boss Let s increase 'renewals Boss Let s avoid business disruption Boss Let s be different (green) You need to do what I say You need to deliver on what you say you ll do Facility Managers Public Everything is great SAY and DO? Public I am the boss Don t make me look bad Environment Something is always going wrong I represent my boss who owns this place Environment high/soph buildings Market offers Bazillion ways to save energy Market offers Expensive solutions Environment Aging buildings inconsistent maintenance Pain Frustrations People and companies let me down Frustrations not enough time Fears Lost customers Fears I look bad Fears Business disruption Obstacles Locked into services Gain Want Less conflict Measures Expenses Want Smooth operations Measures Renewals Measures Lost Time Wants To know there is nothing wrong Wants To know someone else is watching Adapted from Business Model Generation by Alex Osterwalder and Yves Pigneur, Wiley, ISBN: , p. 130 Content (c) Virtjoule, Inc All Rights Reserved

7 Channels - Example 1 v 1 Trusted Sources Website/ Blog Personal Networks Referrals Verizon Lead Gen Trade Pubs + Assoc Adverts How do customers want to be reached? X X X How do we reach them now? X X X X X X How are our channels integrated? Verizon + Personal Networks With Verizon Which ones work best? X X Which ones are most cost efficient? X X X Scaleable? X X Virtjoule, Inc. (c) All Rights Reserved

8 Relationships - Example Conclusions from Empathy Maps Biz Model Options - New area requires lots of personal contact - Customers need to see proof - Customers must trust you - no snap decisions - Customers don t want to do this by themselves - Customer knows they re depending on you - Customer want you to be the silver bullet - high expectations - Personal Assistance - Dedicated Personal Assistance - Expert to Expert - Automated Services - Self Service Virtjoule, Inc. (c) All Rights Reserved

9 Empathy Map - Exercise Instructions 1. Pick another person near you to partner with for this exercise. 2. Give your partner your empathy map (handout) and assume the role of one of your customers. Pick a particular person that you know well. 3. Your partner will interview you and take notes on your handout. (5 min.) 4. Exchange roles and now interview your partner as they think of one of their customers. (5 min.) 5. Debrief and describe your notes on the empathy map to each other. (5 min.) Virtjoule, Inc. (c) All Rights Reserved Randy Cox CEO, Co-Founder

10 Empathy Map - Exercise Researchers: Date: HEAR? THINK and FEEL? What do they think and feel - what really counts, major preoccupations, worries, aspirations? SEE? What do they hear.. what friends say, what boss says, what influencers say? What do they see in the environment, friends, market offers, etc.? What do they say and do attitudes in public, appearance, behavior toward others? SAY and DO? PAIN? GAIN? Fears, Frustrations, Obstacles? Wants, Neds, Measure of Success? Adapted from Business Model Generation by Alex Osterwalder and Yves Pigneur, Wiley, ISBN: , p. 130

11 Discussion Notes - Large Group Value Proposition Customer Relationships Customer Segments How do your custom relationships reflect the empathy map? How does your value proposition address the contents of the empathy map? Channels How do your channels reflect the empathy map? This work (template) is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

12 Resources - Business Model The Book Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. Hoboken, NJ: John Wiley & Sons. The Website Free Preview of the Book (72 Page PDF) /downloads/businessmodelgeneration_preview.pdf Download Canvas Template PDF and Watch 2 minute video /canvas

13 Business Model Canvas Organization: Designer: Date: Key Partners Key Activities Value Propositions Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams This work (template) is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

14 Empathy Map Researchers: Date: THINK and FEEL? HEAR? SEE? SAY and DO? PAIN? GAIN? Adapted from Business Model Generation by Alex Osterwalder and Yves Pigneur, Wiley, ISBN: , p. 130