Customer Value is about the perception of what happens when the customer uses the product. The handyman is not buying a drill; he is buying the ability to make holes. The iPod was not the first nor arguably the best MP3 player but it was the coolest and it was made by Apple.
Connect your brand with the right perception and you won’t have to compete on price.
Getting into the market early is important. Customer feedback will eventually lead the way which means you may not end up where you thought you would go.
But go you must.
Success follows value better than itself. There are plenty of people who believe ______________ owes them something. (Fill in the blank: society, government, big business, school, etc). These are the value depleators; those who consume without returning the favor. But we’ll leave that debate to the protestors of social inequality.
Fortunately, in entrepreneurship, this cannot exist. You have to convince people to give you their money. They won’t do that if they don’t receive a benefit. They get to decide, not you, not your product idea, not the fact you received grant money to develop your technology, and not the fact that you have a patent.
The priority should be to solve a big problem in a big market at a price customers are willing to pay. Success will come.
There’s only one way to validate your product in the marketplace… SELL IT! Primary market research is extremely helpful but you have to get your product in the customer’s hand as soon and as cheaply as possible.
Witkowski’s Laws are from a speech given at Bridging the Gap 2012 at the Oak Ridge National Lab.
Musicians have to struggle with categories. Should they conform to a particular format, style or even the expectations of their fan base? If they do, they can win short term success but in the end, they are known for the past.
Entrepreneurs can get into the same trap if they look where everyone else is playing. Incremental improvements on other’s ideas won’t change the world.
It’s easy to be a critic. Critics report on the status quo. Critics react to change. Your job is not to please the critics. Rather, create something that will delight your customers. Give them something they’ve never had before.
Let the critics create the categories…AFTER you’ve already been there.
Technology and innovation are important but it HAS to solve a problem or create delight. Sell what you’ve got as soon as you can. That’s the only way to be sure you have something people will pay for.
You don’t get to decide if your innovation will be successful. The market does. Don’t you think you should ask them what they want to pay for?
Check out the post in outofthegarage.com
Find the most urgent need, fix the problem and sell it. The rest comes from customer feedback. It’s often version 3 or 4 that takes off.
If you solve a big problem in a huge market, success will follow. Focus on customer pain and delivering a unique solution.
Anyone who figures out how to sell coffee drinks for $4.50 after standing in line for ten minutes knows a thing or two about customer value.
People will pay for value. Find it and sell it for a premium.