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The core of our business model is built around a solution for our customer's needs or problems. In this video we'll take a look at this value proposition and the different ways we can deliver it to our customers through our channels.
[Pasan Premaratne] The next part of our model that we want to explore is our value proposition.
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Our value proposition is the core of our business idea and what we frame everything else around.
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"Value proposition" is just a fancy term for the product or service that you are offering.
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This seems simple enough.
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To clearly define or communicate our value proposition to others
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and to lay it out in our future business plans,
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all we need to do is answer the following questions:
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What value do we deliver to our customer segments,
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what problems are we helping solve,
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and what customer needs or wants are we satisfying?
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Once you've answered these high-level questions,
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it becomes easier to associate the specific features of the product or service
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with the problems they solve or the needs and wants that they fulfill.
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Now that we know our value proposition
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and the customers who we deliver this value proposition to,
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we need to figure out how we are going to deliver it to them.
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This is the focus of our next section: The Channels.
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First, let's start by asking through which channels
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are we going to reach our customer segments?
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You can have multiple channels through which you reach your customer segments,
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but each channel has five distinct phases.
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When you're exploring channels, break it down into these following phases:
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[Awareness] Using this channel, how can you raise awareness
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of the product or service you are offering?
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[Evaluation] What kinds of methods of evaluation are you offering your customers?
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[Purchase] How can a customer purchase your product or service?
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[Delivery] Once a customer has purchased your product or service, how do you deliver it to them?
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[Post Purchase] And finally, how do we offer post-purchase support to our customers?
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Once you have all your channels broken down into the five phases, you will have a better understanding
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of your dependencies, cost structures associated, and your profit margins
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and can thereby figure out which ones can help you reach
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as large a segment as possible while retaining the most revenue.
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