Value Propositions CanvasEstimated Reading Time: just 4 min

Value Propositions are how the company wants to get to the moment in which its products and services create value for a specific Customer Segment/Buyer Persona.
In the Lean Startup Methodology, this moment is called the Product/Market Fit.

Defining Value Propositions is about
– Identifying Customer Segments’ real needs
– Linking them to the value that the business can offer them

In this context, Value Propositions Canvas helps:
– Defining Value Propositions
– Getting to the Product/Market Fit

Value Propositions Canvas in BMC

Value Propositions Canvas takes part in the Business Model Canvas by ensuring the link between Value Propositions and Customer Segments is tight.

Value Propositions Canvas

Value Propositions Canvas is based on 2 sections:

  • Customer Profile (also called the Circle): this section focuses on customer understanding and it is based on Customer Segments/Buyer Personas
  • Value Map (also called the Square): this section focuses on how the company intends to create value for Customer Segments/Buyer Personas

Inside these 2 sections there are 6 blocks:

  1. Customer Jobs: this block focuses on understanding the things the customers are trying to get done

There are typically four main types of job

  • Functional jobs: to perform or complete a specific task or solve a specific problem
  • Social jobs: to look good or gain power or status
  • Personal/emotional jobs: to seek a specific emotional state such as feeling good or secure
  • Supporting jobs: they arise from three different roles in the context of purchasing and consuming values
    • Buyer of Value (such as comparing offers, deciding which products to buy or taking delivery of a product or service)
    • Co-creator of Value (such as posting product reviews and feedback or participating in the design of a product or service)
    • Transferrer of Value (such as cancelling a subscription, disposing of a product, transferring it to others, or reselling it)

Other important factors to understand Customer Jobs are:

  • Job Context (since it may impose certain constraints or limitations)
  • Job Importance (since not all jobs have the same importance to your customer)

Some useful questions for filling this section are

  • What kind of jobs the customer is trying to get done?
  • What is the Job Context?
  • What is the Importance of each job?
  1. Customer Pains: this block focuses on what concerns customers before, during, and after trying to get a job done. It could also be about what prevents them from getting a job done or the risks related to getting a job done badly/not getting it done

Some useful questions for filling this section are

  • What are the undesired outcomes, problems and characteristics for the customer?
  • What are the obstacles for the customer?
  • What are the risks for the customer?
  • What is the Severity of each pain?
  1. Customer Gains: this block focuses on the outcomes and benefits the customers want

Some useful questions for filling this section are

  • What are the Required Gains for the customer?
  • What are the Expected Gains for the customer?
  • What are the Desired Gains for the customer?
  • What are the Unexpected Gains for the customer?
  • What is each Gain Relevance?
  • What is the Functional Utility of each gain?
  1. Product and Services: this block focuses on what the company offers

Some useful questions for filling this section are

  • What Physical/Tangible Products does the company offer?
  • What Intangible Products does the company offer?
  • What Digital Products does the company offer?
  • What Financial Products does the company offer?
  • What is the Relevance of each product for the customer?
  1. Pain Relievers: this block focuses on how exactly the company’s products and services alleviate specific customer pains

Some useful questions for filling this section are

  • What customer’s undesired outcomes, problems and characteristics can be solved by the company’s products and services?
  • What customer’s obstacles can be solved by the company’s products and services?
  • What are the customer’s risks can be solved by the company’s products and services?
  • What Relevance does the Pain Reliever have for the customer?
  1. Gain Creators: this block focuses on how exactly the company’s products and services create gains for the customer

Some useful questions for filling this section are

  • What Required Gains are provided to the customer by the company’sc products and services?
  • What Expected Gains are provided to the customer by the company’s products and services?
  • What Desired Gains are provided to the customer by the company’s products and services?
  • What Unexpected Gains are provided to the customer by the company’s products and services?
  • What is each Gain Relevance for the customer?

APPLICATIONS, ANALYSIS & NEXT STEPS

Value Propositions Canvas does a good job by helping the company figure out how to create value for their Customer Segments/Buyer Personas so that it will gain a competitive advantage by making informed decisions.

Anyway, the most core application of the Canvas is to be the baseline for a Brainstorming and to ask at least quarterly:

  • Does it make sense?
  • Could it be better?
  • Does the rest of my team understand and agree? Are there additional ideas?
  • Did the competitive environment change? Does the company have/maintain a long-term competitive advantage?

The output is a list of ideas/changes to be tested and implemented for a continuous improvement of the products and services so that they can create value for specific Customer Segments.

Nicola Zaffonato Administrator

Business Strategy | Product Marketing | Executive Master eCommerce Management | Business Innovation Master | MSc

I am driven by my personal growth and of people/contexts that surround me.

I followed a professional path in Valentino Fashion Group and Luxottica during which, thanks to the ability to understand different businesses and interests, I was able to succeed in Operations, Merchandising and Retail.

These organizations have exploited my ability to mediate and translate needs/constraints into practice, assigning me to Project Management roles.

Luxottica relied on my ability to analyze, to anticipate things and to imagine/implement solutions by appointing me in Supply Chain Management department and assigning me to the Product Management of IoT solutions for Anti-counterfeiting and Retail digitalization.

During this professional path, I also developed my leadership by managing teams to build Processes, Organizations, Systems and Governance Tools.

follow me
Sharing is Caring!
search previous next tag category expand menu location phone mail time cart zoom edit close