How To Fill In A Value Proposition Canvas
What is a Value Proposition Canvas (VPC)
The Value Proposition Canvas (VPC) is a powerful way to get inside your customers’ heads and understand their needs more fully. It helps you make better decisions about what their needs are, and how you can solve them.
Better than that, it helps you understand how your users’ world changes thanks to your innovation!
A great way to refine your value proposition is to use the Value Proposition Canvas. This way you make sure you don’t forget any of the elements that need to come together to create a strong value proposition.
How to fill in the different sections of the canvas
The primary purpose of the VPC is to help you understand how your solution fits the needs of your users.
The tool has been created by Alex Osterwalder, the same creator of the Business Model Canvas (BMC). So the Value Proposition Canvas is a specification of two boxes of the BMC: Customer Segment and Value Proposition. So the canvas has only two blocks. On the right, you focus on the “who” while on the left on the “what“.
Let’s have a look now at each section of the Value Proposition Canvas and how to fill them.
Basically, a job-to-be-done is any task that someone wants to accomplish. This could be something as simple as buying a new pair of shoes or booking a vacation. The important thing is that the person has a specific goal in mind, and they are willing to put in the effort to achieve it. Of course, not all jobs are equally complex. Some may require more planning and effort than others. But as long as the person is motivated to get the job done, it can be considered a job to be done.
Pains are anything that annoys users. While some pains may be small, others can cause serious headaches. To identify which pains are causing the most problems, it’s important to listen to customer feedback. The pains that matter the most are the ones related to things such as time, money, frustrations, loneliness etc.
Conversely, the gains are what users wish to accomplish. Think deep. It’s not only about the functional reward (e.g. I have a new pair of shoes). It’s about the benefit it brings (e.g. I feel comfortable when walking, I can show them around).
Products & Services
In this quadrant of the Value Proposition Canvas list all the products and services you plan to offer. Define them as specifically as you can. Are they material or immaterial? When will they be used? How?
List here the benefits your solution brings. How will your product contribute to users’ happiness? And how is this contribution valued by users?
How will your product relieve the negative things listed above? Ideally, your product will both generate gains and relieve pains. Sometimes one of the two is a great start.
Where to start and when to use a Value Proposition Canvas
The crucial thing at this point is to distance yourself from your solution and try to understand what the customer wants. You can do that by either interviewing them or simply talking with customers regularly.
The Value Proposition Canvas can help you (re)structure your sales process, by better understanding your customers. It can also be used when adding new features or expanding into different market segments where it may demand significant investments of time/resources (or even both). Lastly, it’s a must-have when you’re launching your startup.
Tips for creating a successful value proposition
Creating a successful value proposition can be quite a challenge, but you’ll improve by coming back to it often. The first step is to gather as much relevant data as possible and base your proposition on real numbers rather than assumptions or estimations. Make sure you distinguish between data and assumptions.
Next, take time to consider all the different angles and perspectives in your business. Your focus should be on highlighting the unique value that you bring to the table – whether that’s price, quality, creativity, convenience, speed, or some other factor. Here, go for the bottom of the iceberg.
Finally, be sure to use clear language and persuasive language throughout your pitch. By following these simple tips, you can create an effective and compelling value proposition that will help set you apart from the crowd.