Value proposition canvas#

Definition — Value model canvas

A value proposition canvas is a visual description of our customer segments, and our value propositions to solve the customers’ problems.

A visual tool divided into two main sections. On the right, a cricle representing 'Customer Profile' section includes three parts: 'Customer Jobs', 'Pains', and 'Gains'. On the left, a square representating the 'Value Proposition Map' section includes three parts: 'Products & Services', 'Pain Relievers', and 'Gain Creators'. An arrow from each meet in the middle, representing the product-market fit.

Fig. 15 The structure of a value proposition canvas. Source: reproduced from https://www.strategyzer.com/#

Fig. 15 shows the structure of a value proposition model. It contains two parts:

  1. A customer profile, which describes the customers within a single segment, including their problems.

  2. A value map, which describes the value propositions that potential solutions bring to that segment.

Value proposition canvases are used to define the value propositions and customer segments of a business model canvas. Effectively, for every segment, we map the segment to the value propositions that solve that segment’s programs. Therefore, there can be multiple value proposition canvases in a single business model:

A business model canvas with several value proposition canvases sitting inside

The four types of startup markets#

When we are starting up a new product or company, there a four broad types markets:

  1. Entering an existing market: The market is well-established and we are simply providing something with a different slant.

  2. Creating an entirely new market: There is currently no market and we are establishing it.

  3. Re-segment an existing market as a low-cost provider: There is a well-established market, and we are providing a surface at a lower price than competitors.

  4. Re-segment an existing market as a niche player: There is a well-established market, and we are appealing to a niche part of the market via e.g. higher quality.

The features of a product are driven by how well they satisfy a market: the product/market fit. Larger companies tend to be market-driven, while startups tend to be product-driven.

Customer profile#

A customer profile canvas

Fig. 16 The structure of a customer profile. Source: reproduced from https://www.strategyzer.com/#

Customer jobs: Trigger questions[1]#

  1. What is the one thing that your customer couldn’t live without accomplishing? What are the stepping stones that could help your customer achieve this key job?

  2. What are the different contexts that your customers might be in? How do their activities and goals change depending on these different contexts?

  3. What does your customer need to accomplish that involves interaction with others?

  4. What tasks are your customers trying to perform in their work or personal life? What functional problems are your customers trying to solve?

  5. Are there problems that you think customers have that they may not even be aware of?

  6. What emotional needs are your customers trying to satisfy? What jobs, if completed, would give the user a sense of self-satisfaction?

  7. How does your customer want to be perceived by others? What can your customer do to help themselves be perceived this way?

  8. How does your customer want to feel? What does your customer need to do to feel this way?

  9. Track your customer’s interaction with a product or service throughout its lifespan. What supporting jobs surface throughout this life cycle? Does the user switch roles throughout this process?

Customer pains: Trigger questions[1]#

  1. How do your customers define too costly? Takes a lot of time, costs too much money, or requires substantial efforts?

  2. What makes your customers feel bad? What are their frustrations, annoyances, or things that give them a headache?

  3. How are current value propositions under-performing for your customers? Which features are they missing? Are there performance issues that annoy them or malfunctions they cite?

  4. What are the main difficulties and challenges your customers encounter? Do they understand how things work, have difficulties getting certain things done, or resist particular jobs for specific reasons?

  5. What negative social consequences do your customers encounter or fear? Are they afraid of a loss of face, power, trust, or status?

  6. What risks do your customers fear? Are they afraid of financial, social, or technical risks, or are they asking themselves what could go wrong?

  7. What’s keeping your customers awake at night? What are their big issues, concerns, and worries?

  8. What common mistakes do your customers make? Are they using a solution the wrong way?

  9. What barriers are keeping your customers from adopting a value proposition? Are there upfront investment costs, a steep learning curve, or other obstacles preventing adoption?

Customer gains: Trigger questions[1]#

  1. Which savings would make your customers happy? Which savings in terms of time, money, and effort would they value?

  2. What quality levels do they expect, and what would they wish for more or less of?

  3. How do current value propositions delight your customers? Which specific features do they enjoy? What performance and quality do they expect?

  4. What would make your customers’ jobs or lives easier? Could there be a flatter learning curve, more services, or lower costs of ownership?

  5. What positive social consequences do your customers desire? What makes them look good? What increases their power or their status?

  6. What are customers looking for most? Are they searching for good design, guarantees, specific or more features?

  7. What do customers dream about? What do they aspire to achieve, or what would be a big relief to them?

  8. How do your customers measure success and failure? How do they gauge performance or cost?

  9. What would increase your customers’ likelihood of adopting a value proposition? Do they desire lower cost, less investment, lower risk, or better quality?

Prioritisation#

Once we have a list of jobs, pains and gains, we prioritise them:

  • Rank the jobs: what are the high-value jobs?

  • Rank the gains: what is the relevance of the gain?

  • Rank the pains: what is the significance of the pain?

Value map#

A value map canvas

Fig. 17 The structure of a value map. Source: https://www.strategyzer.com/#

Pain relievers: Trigger questions[1]#

Could your product:

  1. produce savings? In terms of time, money, or efforts.

  2. make your customers feel better? By killing frustrations, annoyances, and other things that give customers a headache.

  3. fix under-performing solutions? By introducing new features, better performance, or enhanced quality.

  4. put an end to difficulties and challenges your customers encounter? By making things easier or eliminating obstacles.

  5. wipe out negative social consequences your customers encounter or fear? In terms of loss of face or lost power, trust, or status.

  6. eliminate risks your customers fear? In terms of financial, social, technical risks, or things that could potentially go wrong.

  7. help your customers better sleep at night? By addressing significant issues, diminishing concerns, or eliminating worries.

  8. limit or eradicate common mistakes customers make? By helping them use a solution the right way.

  9. eliminate barriers that are keeping your customer from adopting value propositions? Introducing lower or no upfront investment costs, a flatter learning curve, or eliminating other obstacles preventing adoption.

Gain Creators: Trigger Questions[1]#

Could your product:

  1. create savings that please your customers? In terms of time, money, and effort.

  2. produce outcomes your customers expect or that exceed their expectations? By offering quality levels, more of something, or less of something.

  3. outperform current value propositions and delight your customers? Regarding specific features, performance, or quality.

  4. make your customers’ work or life easier? Via better usability, accessibility, more services, or lower cost of ownership.

  5. create positive social consequences? By making them look good or producing an increase in power or status.

  6. do something specific that customers are looking for? In terms of good design, guarantees, or specific or more features.

  7. fulfil a desire customers dream about? By helping them achieve their aspirations or getting relief from a hardship?

  8. produce positive outcomes matching your customers’ success and failure criteria? In terms of better performance or lower cost

Six ways to innovate from a customer profile#

Alex Osterwalder outlines six ways to innovate from customer profiles[1]:

Strategy

Explanation

Address more jobs?

Can we help customers complete more jobs in their day?

More important jobs?

Can we help customers do something more valuable?

Beyond functional jobs?

Can we help customers create value by fulfilling important social and emotional jobs?

Help more customers?

Can we help more customers by making jobs easier or cheaper?

Do a job better?

Can we help customers do a higher quality on existing jobs?

Takeaways#

Takeaways

  1. A value proposition canvas describes our customers, their problems, and the value propositions to help with these problems.

  2. It contains two parts: a customer profile and a value map.

  3. A customer profile describes the jobs, gains, and pains of customers in a segment.

  4. A value map describes the pain relievers, gain creators, and products/services behind these.

  5. When we interview customers to construct profiles, we need to listen.

  6. Interviews aren’t about just asking questions – they are about learning.

References#