Beyond Market Research: Customer Empathy Maps and the Business Model
A UNC BizHub Munch and Master
January 30, 2014Greeley, Colorado
John Latham, PhD, CQEOrganization Architect + Social [email protected]
Randy CoxCEO, [email protected] www.virtjoule.com
www.uncbizhub.org
Ryan SpeirExecutive [email protected]
Value Propositions
Customer SegmentsKey Partners
Key Activities
Key Resources Channels
Customer Relationships
Cost Structure Revenue Streams
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Business Model - The “Basics”
Value Propositions
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 $$$
More Savings than Cost!!!
Vibration Data is FREE!!!
Customer Segments
Owners
Facilities Managers
Resellers
Manufacturers (e.g., HVAC)
Key Partners
- Verizon provides cellular network for telemetry data from sensor to server
- Verizon is also lead generator
- Amazon provides server for data storage and delivery
- Nova Engineering provides circuit boards
- Insurance (general liability and errors and omissions)
Key Activities
- Lead generation- Qualify leads- Sales- Manufacturing + Assy- Fulfillment (pack + ship)- Installation- Baseline Analysis- Analysis + Alerts- Product Development- System Maint + Repair- Case Studies + PR
Key Resources
- 2 People (CEO + CTO)
- Internal Funding (no VC)
- Light design + manufacturing space
Channels
VerizonPersonal NetworksOne on OneReferralsTrade PublicationsTrade AssociationsWeb/BlogAdvertisements
Customer Relationships
Personal Assistance
Dedicated Personal Assistance
Expert to Expert
Automated Services
Self Service
Cost Structure Revenue Streams
This work (template) is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. | Content (c) Virtjoule, Inc. 2013 - All Rights Reserved http://www.businessmodelgeneration.com
Designed by: Randy Cox, Landon Cox, and John Latham Business Model - Example
- Reduced Energy Consumption- Reduced GHG Emissions- Increased Lifetime of Asset- Reduced Operating Cost $$$
- Prevent Catastrophic Failure- Reduced Downtown- Reduced Cost of Repair $$$
- Reduced Response Time- Reduced Perishable Loss- Reduced Downtime- Reduced Customer Impact- Reduced Failure Cost $$$
Improved Operations Preventive Maintenance Business Continuity
Vibration Data from Virtjoule Sensors onMultiple Display Devices (iPad, iPhone, Computer...)
Cellular
DiagnosticsData
EarlyWarning
Data
RealtimeFailureData
Ben
efits
Prod
ucts
Del
iver
y Pr
oces
sValue Propositions - Example
Vibration Data
AmazonServer
Why
Wha
tH
ow
Virtjoule, Inc. (c) 2013 - All Rights Reserved www.virtjoule.com
Pain Gain
Adapted from Business Model Generation by Alex Osterwalder and Yves Pigneur, Wiley, ISBN: 978-0-470-87641-1, p. 130 Content (c) Virtjoule, Inc. 2013 - All Rights Reserved http://www.businessmodelgeneration.com
Researchers: Randy Cox, Landon Cox
Owners
THINK and FEEL?
SEE?
SAY and DO?
HEAR?
CountsCommunityPerception
Preoccupied w OperationalProblems
WorriesBusinessDisruption Worry
Failure
CountsBusinessSurvival
CountsGrowth
CountsProfit
CountsFinancialSecurity
WorriesAboutEmployees
Boss/shareholdersROI loans
FriendsQualityIssues
FriendsWe wantdifferentproducts
Influencersnearbybusinesses
Influencerssuppliers
Influencersother peoplelike meInfluencers
communityInfluencersservices
Public we’reone of you
Public wecare aboutthe environment
BehaviorI need help
BehaviorI am cheap
AppearanceI like what I do
BehaviorI am loyalto peopleand servicesthat help me
BehaviorI try to getand maintainrelationships
EnvironmentDaily operationschallenges
OffersEveryone wantsa piece of me
EnvironmentAll types ofcompetitors
Market
Friends otherbusiness people
Friendscustomers
FearsBusinessFailure
FrustrationsDay to DayGrind
FrustrationsGetting goodhelp youcan trust
ObstaclesCash Flow
ObstaclesNot enoughsavings
Measureshave I providedfor my family?
Achievesecurity
Measuressurvival
Measureshave I done good?
Empathy Map - Example
Pain Gain
Facility Managers
THINK and FEEL?
SEE?
SAY and DO?
HEAR?
Researchers: Randy Cox, Landon Cox
WorriesTechnology
PreoccupationComplaints
PreoccupationNew project /company growthtopline
WorriesDo Ilook bad?
CountsSavingMoney
CountsPleasingthe bossCounts
Avoidingproblems
BossLet’s avoidbusinessdisruption
BossLet’s savemoney forowners
BossLet’s increase'renewals
BossLet’s bedifferent(green)
BehaviorI representmy boss whoowns this place
PublicEverythingis great
PublicI am the boss
BehaviorYou needto do whatI say
BehaviorDon’t makeme look bad
BehaviorYou need todeliver onwhat you say you’ll do
MarketComplicatedsolutions
Environmenthigh/sophbuildings
Market offersExpensivesolutions
Environment Aging buildingsinconsistentmaintenance
Market offersBazillion waysto save energy
Market offersExpensiveservices
EnvironmentSomething isalways goingwrong
FearsI look bad
Frustrationsnot enoughtime
FearsBusinessdisruption
ObstaclesLocked intoservices
FrustrationsPeople andcompanies letme down Fears
Lost customers
WantsTo knowsomeone elseis watching
MeasuresExpenses
MeasuresLost Time
WantSmoothoperations
WantLessconflict
MeasuresRenewals
WantsTo knowthere isnothing wrong
Empathy Map - Example
Adapted from Business Model Generation by Alex Osterwalder and Yves Pigneur, Wiley, ISBN: 978-0-470-87641-1, p. 130 Content (c) Virtjoule, Inc. 2013 - All Rights Reserved http://www.businessmodelgeneration.com
Channels - Example
Virtjoule, Inc. (c) 2013 - All Rights Reserved
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
WithVerizon
Which ones work best? X X
Which ones are most cost efficient? X X X
Scaleable? X X
1 v 1 TrustedSources
Website/Blog
Personal Networks Referrals
Verizon Lead Gen
Trade Pubs + Assoc
Adverts
www.virtjoule.com
Relationships - Example
Virtjoule, Inc. (c) 2013 - All Rights Reserved
- 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
Conclusions from Empathy Maps Biz Model Options
www.virtjoule.com
Empathy Map - Exercise Instructions
Virtjoule, Inc. (c) 2013 - All Rights Reserved
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.)
Randy CoxCEO, Co-Founder
PAIN? GAIN?
THINK and FEEL?
SEE?
SAY and DO?
HEAR?
Researchers:Empathy Map - Exercise
Adapted from Business Model Generation by Alex Osterwalder and Yves Pigneur, Wiley, ISBN: 978-0-470-87641-1, p. 130 http://www.businessmodelgeneration.com
Date:
What do they see in the environment, friends, market offers, etc.?
What do they think and feel - what really counts,major preoccupations, worries,
aspirations?
What do they hear..what friends say,what boss says,
what influencers say?
What do they say and do…attitudes in public, appearance,
behavior toward others?
Fears, Frustrations, Obstacles? Wants, Neds, Measure of Success?
Value Proposition Customer Segments
Channels
Customer Relationships
This work (template) is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. http://www.businessmodelgeneration.com
Discussion Notes - Large Group
How does your valueproposition address the contents of the empathy map?
How do your custom relationships reflectthe empathy map?
How do yourchannels reflect the empathy map?
Resources - Business Model
The Book
Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. Hoboken, NJ: John Wiley & Sons.
The Website
www.businessmodelgeneration.com
Free Preview of the Book (72 Page PDF)
http://www.businessmodelgeneration.com/downloads/businessmodelgeneration_preview.pdf
Download Canvas Template PDF and Watch 2 minute video
http://www.businessmodelgeneration.com/canvas
Value Propositions Customer SegmentsKey Partners Key Activities
Key Resources Channels
Customer Relationships
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 http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. http://www.businessmodelgeneration.com
Business Model Canvas Organization: Date:Designer:
PAIN? GAIN?
THINK and FEEL?
SEE?
SAY and DO?
HEAR?
Researchers:Empathy Map
Adapted from Business Model Generation by Alex Osterwalder and Yves Pigneur, Wiley, ISBN: 978-0-470-87641-1, p. 130 http://www.businessmodelgeneration.com
Date: