Understanding Your Customer Segment

The Completion Level of Your Training.

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Customer Side of Value Proposition Canvas

Understanding your customer is critical to every aspect of your business. The reason your business exists is to serve those customers, so you better understand every aspect of who they are and what they want.

The Value Proposition Canvas is a visual tool you can use to help you better understand who your customer is and what is important to them in their life.  Use the information you gather to better communicate with each group you serve, refine your offering to those groups, so it resonates more favorably with each group.

Learning Objectives:

  • Gain insight on developing demographic overview of your customer.
  • Understand how pains and gains influence customer behavior.
  • Learn how you can gather information to better understand who you serve and what they value.

 

Introduction to Customer Segmenting

BGS uses the Value Proposition Canvas by Strategyzer as a resource to help with understanding your customer and aligning your offering with what your customer wants and needs. The following video provides and overview of the customer segment side of the Value Proposition Canvas.

Begin defining your customers

 

Here you want to look at the general demographics that help you describe the different categories of customers who currently buy your product or service. This becomes important as you begin to classify your customers. You want to canvas and interview these different groups to see if their pains and gains are similar or different. This level of understanding helps you better communicate with each group and refine your offering, so it resonates more favorably with each group.

Assignment:

  • Define one of your customer categories using the type of descriptors to describe that type of customer in your terms.

What your customer wants

Customer gains represent the positive outcomes that your customer seeks. Do not get locked in specific to your product or service. Through this process you want to better understand your customer as a person so that you know how best to connect with them and make your offering resonate with them.

Think of this as how your customer evaluate success. focus your attention on positive outcomes, desired achievements, benefits, or things your customer aspires. Understanding these things will help you design a better offering.

Assignment:

  • List the gains you believe that customers want within the customer group you defined.
  • Are there others gains which are not part of your current offering?

What your customer avoids

You know that people tend to be either positive or negative in nature. Just like customer gains are positive oriented, then customer pains come from the opposite perspective looking at those things customers want to avoid. In this part of the process, we wanted to look at those negative outcomes. challenges, obstacles, and risks that your customers try to avoid.  This gives you the other side of the coin. You want to speak to both positive and negative benefits of your offering so that you communicate completely with your customers and market.

Assignment:

  • List the pains you believe that customers want to avoid within the customer group you defined.
  • Are there others pains which are not part of your current offering?
  • Based on the customer you described previously list 3-5 people who fall into this customer persona.
  • Contact those customers and have a conversation with them using your question set.