Entrepreneurship: 2 Sides of the Value Proposition Canvas – What Customer’s Expect

The Value Proposition Canvas has two sides. The customer profile side allows you to clarify your understanding of the customer. While the value map allows you to describe how you intend to create value for that customer. The ultimate goal is to create a fit where the two sides meet each other.

What is a Value Proposition?

Value proposition describes the benefits that customers can expect from your products and services. In order to create a fit, you need to observe customers and then create a value proposition that is attractive to them.

Value Proposition Canvas: Value Map

Value Proposition Canvas

The Value Map describes the features of a specific value proposition in your business model in a more structured and detailed way. It breaks your value proposition down into three components:

  • Products and Services

This is a list of all the products and services your value proposition is built around. This bundle of products and services helps your customer perform their functional, social, or emotional jobs or meet basic needs. Although products and services do not create value alone, they do create value in the presence of a relationship to a specific customer segment and their jobs, pains, and gains. Products and services may be tangible, intangible, digital, or financial.

  • Pain Relievers

This describes how your products and services alleviate customer pains. They outline how you intend on eliminating or alleviating the things that inhibit or annoy your customers either before, during, or after they are trying to perform a job. Great value propositions address pains that actually matter to customers, especially extreme pains. Instead of trying to create a value proposition that tries to relieve every pain, it is better to focus on only a few pains and alleviate them really well. Relieving extreme pains creates far more value than relieving moderate pains.

  • Gain Creators

This describes how your products and services create customer gains. Gain creators outline how you intend to produce outcomes and benefits that your customer expects, wants, or would even be surprised by. these can include functional utility, social gains, positive emotions, and cost savings. Essential gain creators add far more value than ones that are merely ‘nice to have.’

Value Proposition Canvas: Customer Profile

Value Proposition Canvas

The Customer Profile describes a specific customer segment in your business model in a more structured and detailed way. It breaks the customer down into three components:

  • Customer Jobs

This describes what customers are trying to get done in their work and in their lives. This includes everything from the tasks they are trying to perform to the problems they are trying to solve to the needs they are trying to satisfy. It is crucial for you to take on the customer’s perspective when observing jobs. The four main types of jobs are: Functional jobs performed to complete a specific task; Social jobs performed to gain or maintain power and status; Emotional jobs performed to achieve a certain emotional state; Supporting jobs performed in the context of consuming value.

  • Pains

This describes bad outcomes, risks, and obstacles related to customer jobs. Undesired outcomes are functional pains; obstacles prevent the customer from even getting started on the job, and risks involve important negative consequences.

  • Gains
gains

This describes the outcomes customers want to achieve or the concrete benefits they are seeking. Some gains are expected and desired while others would surprise the customer. The four types of customer gains are: required gains, expected gains, desired gains, and unexpected gains.

Value Proposition Canvas: Achieving Fit

You achieve Fit when your value map meets your customer profile. When your products and services produce pain relievers and gain creators that match one or more or the jobs, pains, and gains that are important to your customer.

The more thorough and detailed your Value Proposition Canvas is, the better. It will help you prepare customer interviews and tests regarding your assumptions about customer jobs, pains, and gains, as well as give you valuable insights about your customers.

https://www.strategyzer.com/canvas/value-proposition-canvas