The value proposition is a business tool that can help to create, design and implement value propositions. It is a tool which is used by tutors, trainers and business start-ups to look at the fit between customers and their products/services. It is used as a bolt-on to the Business Model Canvas in order to outline the value proposition more clearly. The value proposition canvas has two sides: the customer segment who the business intends to create value for and the value proposition which will helps the business at-tract customers. The canvas draws a parallel between products and services offered and customer needs. With the customer profile the business clarifies its understanding of the customer and with the value map the business describes how it intends to create value for that customer (i.e. fit between both sides).
The customer profile is composed of
• customer jobs the customers are trying to complete (e.g. function, social and personal jobs)
• customer pains that picture the negative aspects they may face while trying to complete the jobs (e.g. undesired outcomes, obstacles and risks)
• customer gains that show the positive outcomes which the customers may have (e.g. required gains, expected gains, desired gains and unexpected gains) Care must be taken to identify the importance of customer jobs, level of severity of pains and relevance of gains obtained.
The value proposition addresses the customer profile and is composed of
• products and services the business is delivering; they can be tangible, intangi-ble, digital, financial etc,
• pain relievers describe how the products and services can soften an soften the specific pains the customers face
• gain creators describe how customers can benefit from the business’ products and services When the features of your value proposition map perfectly match the characteristics of the customer profile the business achieves a fit.
Instructions on completing the value proposition map
1. Start with customer jobs: describe what jobs a specific customer is trying to get done
2. Add pains and gains: define every pain the customer experiences or could ex-perience before, during, and after getting the job done and define gains for eve-ry benefit the customer expects, desires or would be surprised by
3. List all the products and services the business’ value proposition is built around
4. Outline how the business intends to create value: describe how the products and services create value by either killing customer pains or creating customer gains
Frequently committed mistakes
• Do not alleviate every pain and target every gain --> focus on a limited number of pain relievers and gain creators
• Do not mix present and future --> make sure you clearly distinguish between the presently existing and future ideas
• One map per value proposition --> focus on one value proposition for a specific customer segment on a single map
Sources accessed on May 23rd, 2018
http://www.marketingteacher.com/value-proposition-canvas/ https://assets.strategyzer.com/assets/resources/the-value-proposition-canvas-instruction-manual.pdf
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