By Rachel Won / 27 April 2020 / Tags: Entrepreneur Journey

The Value Proposition Canvas is formed around two building blocks – customer profile and a company’s value proposition.

The Value Proposition Canvas was initially developed by Dr Alexander Osterwalder as a framework to ensure that there is a fit between the product and market. It is a detailed look at the relationship between two parts of the Osterwalder’s broader Business Model Canvas; customer segments and value propositions. The Value Proposition Canvas can be used when there is need to refine an existing product or service offering or where a new offering is being developed from scratch.

Customer Profile
•   Gains – the benefits which the customer expects and needs, what would delight customers and the things which may increase likelihood of adopting a value proposition.
•   Pains – the negative experiences, emotions and risks that the customer experiences in the process of getting the job done.
•   Customer jobs – the functional, social and emotional tasks customers are trying to perform, problems they are trying to solve and needs they wish to satisfy.

A customer profile should be created for each customer segment, as each segment has distinct gains, pains and jobs.

Value Map
•   Gain creators – how the product or service creates customer gains and how it offers added value to the customer.
•   Pain relievers – a description of exactly how the product or service alleviates customer pains.
•   Products and services – the products and services which create gain and relieve pain, and which underpin the creation of value for the customer.

Achieving fit between the value proposition and customer profile
After listing gain creators, pain relievers and products and services, each point identified can be ranked from nice to have to essential in terms of value to the customer. A fit is achieved when the products and services offered as part of the value proposition address the most significant pains and gains from the customer profile.

Identifying the value proposition on paper is only the first stage. It is then necessary to validate what is important to customers and get their feedback on the value proposition. These insights can then be used to go back and continually refine the proposition.

Nailing your own value prop
Hopefully these value proposition examples have given you some ideas of how you can improve or clarify your business’ value proposition. You don’t need an immense marketing to put what makes your business the best front-and-center in your messaging – just a little focus and a moment or two to consider your site from the perspective of your users.

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