A Harvard professor once famously pointed out that people don’t go to the hardware store to buy a drill – they go to buy a hole. Customers don’t buy products: they buy a desired result. They have a “job to be done”.
Successful businesses have one thing in common – they offer a product or service that helps customers accomplish their job more effectively, conveniently or affordably. By implication, to be successful, brands must offer the best product for the job, the offer that most closely meets a customer’s real needs. They need a strong Customer Value Proposition.
We create and evaluate a Customer Value Proposition using the Strategy Canvas, a Blue Ocean Strategy tool. The Strategy Canvas enables a brand to position its offer competitively, according to customers’ key decision-making criteria. It highlights the real points of difference and areas on which the brand should focus its efforts.
Strategic Research has also developed an approach to refine the business model of new offers. We have observed that the biggest obstacle to radical innovation is the difficulty in finding a sustainable business model: real innovation often demands knowledge and skills that the company does not currently possess. As well as creating the Customer Value Proposition, we therefore assess:
- How revenue is generated, and at what cost to the brand
- What resources are required to develop the new offer
- Which processes to put in place to deliver the Customer Value Proposition sustainably.