What is the Value Proposition Canvas, and how can you use it to create a compelling value proposition?

1 What is the Value Proposition Canvas?

The Value Proposition Canvas is a tool developed by Strategyzer, a company that specializes in business model innovation. It consists of two parts: the Customer Profile and the Value Map. The Customer Profile helps you understand your customer segment, their jobs, pains, and gains. The Value Map helps you define your value proposition, your products and services, pain relievers, and gain creators. The goal is to align your value proposition with your customer segment, and create a fit between what you offer and what they want.

2 How to use the Value Proposition Canvas?

In order to use the Value Proposition Canvas, you should begin by identifying your customer segment and listing their jobs, pains, and gains. Jobs are the tasks, activities, or problems that customers want to accomplish or solve; pains are the negative outcomes, risks, or obstacles that customers experience or fear; and gains are the positive outcomes, benefits, or aspirations that customers desire or expect. Next, describe your value proposition and list your products and services, pain relievers, and gain creators. Products and services are the tangible or intangible offerings that you provide to your customers; pain relievers are the ways that your products and services alleviate customers' pains; and gain creators are the ways that your products and services generate or increase customers' gains. Then compare and contrast the two parts of the canvas to look for a fit between them. You can use different colors or symbols to indicate the fit, such as stars, checkmarks, or arrows. Finally, validate your value proposition canvas with customers using interviews, surveys, experiments, or prototypes. Based on the feedback and evidence you collect, adjust and improve your value proposition canvas until you find a strong fit.

3 Why use the Value Proposition Canvas?

The Value Proposition Canvas is a useful tool for numerous reasons. It encourages you to focus on your customers and their needs, rather than on your products and features. Additionally, it allows you to communicate your value proposition clearly and concisely, while differentiating it from competitors. This tool also helps you validate your value proposition with customers, and create a relevant, desirable, and valuable offer that drives their decision to buy from you. The Value Proposition Canvas can help you comprehend your customers, define your value proposition, match your offer with their needs, and test and refine your fit. Ultimately, the use of this tool increases the likelihood of creating a product or service that customers love and purchase.

4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?