Designing for superior business performance

A guide for technology, creative and startup leaders

"if you love what you're doing and you always put the customer first, success will be yours.”
Ray Kroc.

Choice 3: Delight we create

Steps in engineering delight

In this section

Outline the steps to augmenting a value proposition with unique delight.

Steps in designing a value proposition with delight

Step 1

In step one, you engineer a value proposition as per the standard established by Michael Porter, Harvard Business Professor, reiterated in standard methods since that time.

  1. Problems we solve - needs we satisfy?
  2. Which customers - Who do we serve (who has those needs)
  3. What relative price

The connected elements of a Value Proposition

Porters value proposition

Porters value proposition - this model remains current on Harvard Business Review website at the time this page was updated.

Step 2

Overlay the concepts from Michael Porter's value map, but focus predominately on the value drivers rather than all the related decisions.

Step 2 Guiding precursor

The precursor to guide to Step 2: is to develop some ideal customer narratives (Begin with the end in mind) describing what is desired in terms of customer experience. You will see the details soon.

Step 3

Decide on which strategy pattern your value proposition will apply.

  1. Cost leadership - for ability to delight on price
  2. Differentiation - for ability to delight on quality, performance, uniqueness
  3. Both - remembering this is as dangerous as it is tempting

Step 4

Decide on the revenue models, to ensure the value proposition returns value to the business stakeholders.

Engineering customer delight in StrategyCAD™

engineering delight in strategyCAD

StrategyCAD™ supports these steps using the steps shown in the above screenshot

  1. Which customers - first leg of Porters value proposition method.

  2. Problems we solve - uses the great innovator Clayton Christensen's Jobs to Be Done framework to define problems and needs as the second leg of Porters value proposition method

  3. Delight we create - this is where you and your team define some narratives of what customers need to be saying in response to your value proposition. These narratives can describe who, how and why the customer is delighted with your value proposition. You can capture what they will ideally be saying and how they are feeling.

  4. The goal in this step is to define a combination of the value drivers that represent the delight you and your team want to create. This delight might come from the narratives, existing customer feedback, studying the available feedback from rival offerings and so on.

    What exactly is a value driver

    A Value driver is an attribute of your value proposition that makes the customer experience delightful. Moreover, (just like McDonald's) it is an attribute that customers can consistently rely on or expect from your value proposition. Example value drivers include:

    • Price / cost
    • Convenience
    • Appearance / style / aesthetics
    • Speed of service / delivery
    • Friendliness, attitude, helpfulness, authenticity of service.
    • Diversity of range

    Frequently it will not be any one single value driver, but the combination that creates delight. You will see some examples during this chapter.

    As part of this step you can evaluate to what extent the value drivers:

    1. Resonate with customers or prospective customers.
    2. Are experienced by customers or prospective customers.

  5. Relative price In StrategyCAD™ you choose the relative price within each offering. This gives you the flexibility to have different price tiers within the same value proposition or avoid the need to create multiple value propositions that only vary by price. Needs and customer segments might be the same or very similar.

  6. Revenue model - here you decide with what revenue model you will capture value for the business. There are only a handful to choose from and you can choose multiple for different scenarios e.g purchase and/or lease.

Continue . . .

 

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