Map, think though, and discuss your value propositions and how they match your customers’ needs.
👥 3 – 10 people | ⏰ between 45 and 90 minutes
Objectives of Value Proposition Canvas
This thinking and design tool helps you design Value Propositions that match your customers’ needs and aids them in solving their problems.
The Value Proposition Canvas guides you to problem- solution fit in a more structured, thoughtful way. It captures core issues around customer problems and potential solutions.
The Value Proposition Canvas is based on two blocks from the Business Model Canvas: the Value Proposition and the Customer Segment.
This exercise sketches out both in more detail with a simple but powerful structure, which will allow for better strategic conversations and prepare you for testing both building blocks.
- Before starting the canvas, sketch a profile of your target customers. First, determine what they are trying to accomplish. This could be tasks they are trying to perform and complete, problems they are trying to solve, or needs they are trying to satisfy. Next, describe any negative emotions, costs, and risks that they might experience before, during, and after getting the job done. Then describe the benefits they expect, desire, or would be surprised by, which include utility, social gains, positive emotions, and cost savings.
- Once the team has completed the customer profile, begin creating the Value Proposition Canvas. Divide a flip-chart sheet of paper into three sections: Products & Services, Gain Creators, and Pain Relievers. See an example of the template: http://www.businessmodelgeneration.com/downloads/value_proposition_canvas.pdf
- In the Products & Services section: List all the products and services your value proposition is built around. Which products and services do you offer that help your customer get either a functional, social, or emotional job done, or help him/her satisfy basic needs? Rank all products and services according to their importance to your customer—are they crucial or trivial?
- In the Gain Creators section: Describe how your products and services create customer gains. How do they create benefits your customer expects, desires or would be surprised by, including functional utility, social gains, positive emotions, and cost savings?
- In the Pain Relievers section: Describe how your products and services alleviate customer pains. How do they eliminate or reduce negative emotions, undesired costs and situations, and risks your customer experiences or could experience before, during, and after getting the job done?
- You can use the Value Proposition Canvas like the Business Model Canvas: plot it as a poster, post it up on the wall, then use sticky notes to start sketching.
What is Value Proposition
A value proposition is a promise of value to be delivered, communicated, and acknowledged. It is also a belief from the customer about how value (benefit) will be delivered, experienced and acquired.https://en.wikipedia.org/wiki/Value_proposition