If you want to learn about the value proposition canvas, you came to right place.
In this article, you’ll get the value proposition canvas explained in a clear and understandable way.
A value proposition summarizes why a consumer should buy a company’s product or service. A value proposition should convince potential customers that they’ll get more value from a product or service than they would from other offerings.
One of the best ways to utilize the concept of value propositions is to use the value proposition canvas. The value proposition canvas was created by Alexander Osterwalder, Yves Pigneur, Gregory Bernarda, and Alan Smith. This canvas was introduced in their book Value Proposition Design: How to Create Products and Services Customers Want. Using this canvas to analyze customer segments is one of the best starting points to brainstorm business ideas.
Here are the building blocks that fall under the value proposition canvas, as described by these authors. It comes in two parts: customer segment profile and value proposition map.
Customer Segment Profile
- Pains – this describes bad outcomes, risks, and obstacles related to customer jobs
- Gains – this describes the outcomes customers want to achieve or the benefits they are seeking
- Customer Jobs – this describes what customers are trying to get done in their work and in their lives, as expressed in their own words
Value Proposition Map
- Pain Relievers – this describes how your products and services relieve customer pains
- Gain Creators – this describes how your products and services create customer gains
- Products & Services – this is a list of products and services a value proposition is built around
To look at this another way, here’s the structure of a value proposition that takes the concepts customer jobs, customer pains, and customer gains into consideration:
Here’s an example of a value proposition that uses this type of wording:
📚 "Value Proposition Design: How to Create Products and Services Customers Want" by Alexander Osterwalder, Yves Pigneur, Gregory Bernarda, Alan Smith
📚 "Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers" by Alexander Osterwalder, Yves Pigneur, Gregory Bernarda, Alan Smith
📚 Jobs to be Done: Theory to Practice
💻 Innovation: From Creativity to Entrepreneurship Specialization
💻 Strategic Management and Innovation Specialization (Coursera):
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