The Value Proposition Canvas is a framework designed to align a product or service with customer needs and preferences. It was developed by Dr. Alexander Osterwalder as a tool to ensure that there is a strong match between the product and the target market.
Main Benefits of The Value Proposition Canvas
The Value Proposition Canvas helps organizations to create and communicate value propositions that effectively address customer needs.
The Value Proposition Canvas helps you:
- to ensure the product meets the needs of the market,
- to better understand and address customer needs and expectations,
- to identify the target customer segments,
- to create a competitive advantage.
Explanation of The Value Proposition Canvas
The Value Proposition Canvas is a customer-centric approach that is formed around two building blocks –Customer Profile and Value Proposition
In the Customer Profile section, businesses analyze their target customer. Understanding the specific needs, desires, and goals of the customers helps businesses to customize their value proposition.
The customer profile circle is divided into three parts: Jobs, Gains, and Pains.
Customer jobs encompass the practical, social, and emotional tasks that customers aim to achieve with the product & service. It involves understanding the objectives customers have in mind.
Gains refer to the advantages, benefits, or positive outcomes that customers anticipate and require from a product or service.
Pains represent the negative experiences, emotions, and risks that customers experience during the process of accomplishing their desired tasks. It focuses on problems that will be eliminated when using the product or service.
The value proposition is also divided into three parts: Products and Services, Gain Creators and Pain Relievers. Each part relates to the relevant customer profile section.
Products and Services refer to the specific features, products, and services that the company offers to enable customers to accomplish their tasks.
Gain creators focus on the offers that help customers to fulfill their desired gains. It includes all outcomes and benefits that the customers expect.
Pain relievers are centered on eliminating any aspects that may cause annoyance or dissatisfaction.
Businesses can create a perfect fit between the product and market when customers acknowledge and appreciate value proposition and subsequently take action.
How to Apply The Value Proposition Canvas
To apply The Value Proposition Canvas to your business, FITMINDS is providing an adoption of the model that fits your company and your company’s needs. By understanding and addressing customer jobs, pains, and gains, businesses can design value propositions that effectively meet customer needs.
Contact us to get more information or discover your probable personalized roadmap for Value Proposition Canvas.
Additional Tips and Readings
- You can read The Lean Startup Method for a better understanding of customer needs.
- To explore existing relations with your customers, you can read The Buy-Sell Hierarchy Model.
- To visualize customer buying habits, you can read The AIDA Model.
- To read more about segmentation, you can check Market Segmentation.
Contact us to develop successful marketing strategies via VALUE PROPOSITION CANVAS.
