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

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?

2. 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?

3. 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?

4. 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?

5. 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?

6. 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.