Turning night into day: this was the Value Proposition of one of the inventions that made human history, Thomas Edison’s light bulb. It seems clear that, with such a promise, his invention was destined to change the fate of the world (not least because its competitors were gas lamps, oil lamps, and classic candles). But precisely in the differentiation and value of its product lies its success.
Every startup and entrepreneur must know the differentiating element of their business offering, whether it is a product or a service, because otherwise they are bound to blend into the crowd and concede nothing more than others.
If you know what differentiates your business, you can not only gain a key competitive advantage, but also gain a deep understanding of your customer. All of this connects and binds to illuminate the road to success, just as electromagnetic waves propagate through space from a simple light bulb.
Need to see a little more clearly? Then get ready to learn about one of the most enlightening tools for your business: the Value Proposition Canvas!
What is the Value Proposition Canvas
The Value Proposition Canvas is a strategic tool used to define and articulate a company’s value proposition in a clear and concise manner. This strategic document is used to ensure that a company’s product or service exactly matches the needs and desires of its customers.
It is a visual scheme divided into two sections:
- Customer Profile, which includes Customer Jobs, Pains, Gains);
- Value Map, within which we find Products and Services, Pain Relievers, Gain Creators.
The Value Proposition Canvas is a versatile tool that can be used by companies of all sizes and industries. It is especially useful for startups and companies that are launching new products or services and a valuable resource for companies that want to define a compelling value proposition, position themselves in the marketplace, and achieve success.
Benefits of the Value Proposition Canvas
The Value Proposition Canvas model can help companies create winning value propositions, increase their market competitiveness and achieve long-term success.
One of the key benefits of the Value Proposition Canvas is the ability to define precisely what makes a product or service unique. It seems obvious, but many companies to the question “what makes you unique compared to the competition?” cannot answer.
Instead, this framework allows you to clearly identify why customers should choose your company’s offering over alternatives in the marketplace. The clarity with which you can define your Value Proposition is valuable and prevents you from focusing on less relevant elements.
In addition, a second benefit of the Business Canvas Value Proposition is a natural consequence of the first: you can thoroughly understand your customer base. It is as if by knowing yourself as a brand you also learn about your customers. This happens because, in addition to the value map, within the document you also have to fill out a customer profile. After a detailed analysis of tasks, pains and benefits and an iterative process of validation and adaptation, you can understand exactly what your customers are looking for and want.
The third benefit of the Proposition Value Canvas is the opportunity provided by this document to gain a competitive advantage. In fact, by using a Value Proposition Canvas Template, you can outline the factors that make you different, therefore competitive in the marketplace.
Let us also not forget that a Canvas Value Proposition supports the marketing team in several ways in creating effective campaigns and communications. This happens because through this valuable tool the team can:
- better understand their target audience and their needs;
- clearly communicate the unique value of the company;
- develop targeted campaigns that generate concrete results;
- create engaging and persuasive marketing materials;
- measure and optimize the effectiveness of their marketing activities through the metrics that emerged as a result of writing the paper.
But to benefit from these advantages, the Value Proposition Canvas must be filled out correctly.
How to fill out the Value Proposition Canvas correctly
To make the most of a Value Proposition canvas, it is essential to follow its structure and take a strategic approach. Remember that it is an iterative process: validate your canvas with customers, gather feedback and regularly update your value proposition to stay aligned with the needs of the market and your target audience.
The customer profile
Within the Value Proposition Canvas, the Customer Profile section plays a major role, because only by knowing your customer can you define an effective and distinctive value proposition.
You can gather this information with both quantitative and qualitative research, working on buyer personas, leveraging empathy maps, and carefully benchmarking with competitor customers.
If you know how to use the right tools and strategies, you will gain a thorough understanding of your target audience. You need to work on three elements: Customer Jobs, Pains and Gains.
Customer Jobs
Description: the “Jobs” field describes the tasks that clients seek to perform in their life or work. These can be functional, social or emotional.
Examples:
- use software to process data, shop online, repair an electrical appliance (functional job);
- use branded clothing to convey a successful image, attend networking events to build professional relationships (social job);
- feel safe using a home security product, feel joy watching a moving movie, reduce stress through meditation techniques (emotional job).
Pains
Description: the field of pains represents the frustrations, problems and risks that clients face when trying to perform their tasks.
Examples:
- complex and difficult-to-use software;
- stress caused by lack of customer support;
- concerns about the environmental and social impact of using a product.
Gains
Description: gains indicate the advantages gained from completing one of the jobs. These can be both tangible and intangible and include improvements, desires fulfilled, and goals achieved.
Examples:
- time savings, increased productivity, reduced operating costs (functional gains);
- feel more confident, experience joy in using a product, reduce stress (emotional gains);
- improve professional image, be perceived as innovative, strengthen social relations (social gain).
The value map
In the Value Map section, the focus shifts from who the customer is and what they need to how your company can concretely respond to those needs. This map must be customer-oriented but differentiating in your proposition, truthful, that is, based on hard facts and real customer benefits, and at the same time easy to understand and convey.
A well-structured Value Map is the basis for effective communication and a compelling value proposition. It allows you to speak directly to your customers’ hearts, showing them how your company can make a difference in their lives. It winds through Products and Services, Pain Relievers, Gain Creators.
Products and services
Description: this field includes the products and services the company offers around which the company’s value proposition is built.
Examples:
- e-learning platform that issues recognized certificates upon completion of courses taught by international experts;
- beauty product subscription service with monthly delivery of a selection of customized products selected according to individual preferences and needs;
- health food delivery service with subscription for weekly delivery of fresh, ready-to-eat meals for a pre-planned diet.
Pain relievers
Description: these are the elements that enable the product or service to simplify a process or break down an obstacle in performing an action.
Examples:
- accounting software with a free demo for one month with no obligation to purchase;
- medical consultation app, with real-time support chat with doctors to answer patients’ questions;
- project management platform with guided implementation and training sessions included in the software purchase.
Gain creators
Description: these items indicate the benefits the user derives from using the product or service.
Examples:
- the savings in time and effort in daily commuting offered by a company that sells electric bikes;
- community of active players and exclusive tournaments for premium members of an online gaming app;
- access to exclusive rates and discounts for hotels and flights through established partnerships between a tour operator and service providers.
Value Proposition Canvas example
If there is one company that has entered the market as a true breath of fresh air (which has since spawned a tornado of unresolved issues) this is Uber. The startup, which has now evolved into a colossal multinational operating in more than 66 countries and 500 cities around the world, has revolutionized the transportation industry with its unique and compelling value proposition, centered on three key pillars:
- convenience and accessibility;
- affordable and flexible prices;
- reliability and safety.
Uber’s Value Proposition has had a significant impact on the transportation market, as the company has increased competition and encouraged lower prices for traditional cabs, made transportation more accessible to a wider audience, including those who do not own cars, and contributed to the growth of the on-demand and sharing economy.
Certainly, its path has not been without obstacles and difficulties, and the company has made a significant effort to structure an attractive and differentiating value proposition. To hypothesize the outcome of that effort, however, here is what its Value Proposition Canvas template should look like.
Value Proposition
Products and services:
- Cab upon request
- Efficient runs
- One-click running
- Sharing the journey
Gain creators:
- Shorter waits for travel
- Cab availability upon request
- Low prices compared to cabs
Pain relievers:
- Smooth processing
- Cheaper runs
- Status sharing
- Cashless
- Reliability
Customer Segment
Jobs:
- Variety of service
- Availability on request
Gains:
- Faster service
- Low prices
- Availability
Pains:
- Higher costs
- Required processing time
- Reliability
- Security
The Value Proposition Canvas Template in pdf.
Do you also want to stand out from the competition?
Download Strategyzer’s original Value Proposition Canvas template now!
Value Proposition Canvas and Business Model Canvas: differences
The Business Model Canvas is a strategy map that provides a comprehensive view of how a business operates. It is structured around nine key elements that cover all the fundamental aspects of how a business creates, distributes and captures value. The Business Model Canvas is particularly useful in the early stages of development, in creating new strategies or in rethinking the existing business model. It provides a strategic and operational view of the entire business, enabling entrepreneurs and managers to understand how each component fits into the big picture.
On the other hand, the Value Proposition Canvas, as we have seen, focuses specifically on the company’s value proposition, that is, how the company satisfies customers’ needs and wants in a unique way compared to competitors. This tool is divided into two main parts, the customer profile and the value proposition. The Value Proposition Canvas is crucial for developing products or services that are truly relevant and desirable to the target market, helping the company to differentiate itself and position itself effectively.
Ultimately, while the Business Model Canvas provides a holistic and comprehensive view of a company’s business model, the Value Proposition Canvas focuses on the critical details of the value proposition and the customer.
Used together, these tools enable companies to develop a clear understanding of competitive market dynamics and create strategies that not only generate value, but are also relevant and attractive to target audiences.
Value Proposition Canvas and Lean Canvas: differences
Among the tools available for planning and defining an effective strategy, in addition to the Value Proposition Canvas, the Lean Canvas should also be considered. Although both aim to lay out a clear framework for the business, they have substantial differences that make them suitable for different phases and objectives.
The Value Proposition Canvas focuses on the value proposition, while the Lean Canvas embraces a broader vision, outlining the entire business model with a lean approach. It proves invaluable in the early stages, when a business idea is still being defined because it allows for rapid validation of basic assumptions, identifying key components for success.
Choosing between the two canvases depends on the stage your company is in: the Value Proposition Canvas is useful if you have a good understanding of your target customers and want to refine the value proposition to maximize its impact; the Lean Canvas, on the other hand, is useful in the early stages, as it helps you test and validate the business idea before investing valuable resources.
Both tools, however, are not mutually exclusive. Rather, they can be used in complementary ways. The Lean Canvas can be used to develop an initial business model, then switch to VPC at a later stage and refine the value proposition with greater precision.
In conclusion, the Value Proposition Canvas is the pattern of cables that when aligned well allow you to turn the light on your uniqueness!
