Ask The Right Questions
All four elements of a business model are important, but none is more significant than the “What” (your value proposition), which means you should simply ask your customers what they want, right? Yes, you could but unfortunately it just doesn’t work
Customers simply don’t have the required skills and insights to be innovative and creative on your behalf, and therefore they cannot tell you what your value proposition should be. But they have other important skills – they have the ability to tell you about the problems, frustrations, and challenges they have experienced with current products and services.
Problems, Frustrations & Challenges
Problems, frustrations, and challenges are often combined under the umbrella entitled “pains”, a word often used by Swiss business guru Alexander Osterwalder. Knowing about pains is a good start, but not all pains are equally important, which lead to two additional questions:
- How often they occur?
- How big an impact they have?
If a pain happens infrequently with little impact, then it can be cured with an aspirin – most companies can solve that easily. On the other hand, if a pain happens frequently and has an enormous impact then an aspirin won’t relieve the pain. Once your company can relieve these serious pains, you have a foundation for a strong value proposition.
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