Strategyzer's Value Proposition Canvas Explained

Every day companies design products and services to improve their customers lives. But 72% of new product and service innovations fail to deliver on expectations. This means that customers don't care about 7 out of 10 new products introduced to the market. It doesn't have to be this way. Just like you create value for your business with a business model canvas, there is in fact a tool to intentionally visualize, design and test how you create value for customers. It's called the Value Proposition Canvas. The value Proposition canvas is composed of two the customer profile and the value map. With the customer profile, you describe the jobs your customers try to get done. Jobs can be functional, like getting from A to B, social like impressing friends and colleagues, or emotional, like gaining peace of mind. You highlight your customers pains which annoy customers while trying to get a job done. Pains are negative outcomes that customers hope to avoid, like dissatisfactions of existing solutions and challenges, frustrations, risks or obstacles related to performing a job. And you outline customer gains which describe how customers measure the success of a job. Well done gains are positive outcomes that customers hope to achieve, like concrete results, benefits and even aspirations. Use the customer profile to visualize, test and track your understanding of the people or companies you intend to create value for. It's a map that becomes clearer the more you learn about your customers. The second part of the canvas is the value map. With it, you list the products and services your value proposition builds on. You describe in which way these products, services and features are pain relievers, how they eliminate, reduce or minimize pains customers care about making their life easier. And you outline in which way they are game creators, how they produce, increase or maximise outcomes and benefits that your customers expect, desire, or would be surprised by. The value map makes explicit how your products and services relieve pains and create gains. Use it to design, test and iterate your value proposition until you figure out what resonates with customers. You achieve fit by creating a clear connection between what matters to customers and how your products, services and features ease pains and create gains. Great value propositions target essential customer jobs, pains and gains and do so extremely well. Your customer profile may contain countless jobs, pains and gains, but your value map highlights which ones you intend to focus on. But don't forget an outstanding value proposition can still fail if your business model is flawed. Successful companies embed outstanding value propositions in scalable and profitable business models. Use the Value Proposition canvas to create products and services that customers want. Get started@stragizer.com.