If you have no customers, you have no business.
The Value Proposition Canvas is a strategic management and lean startup tool created by Strategyzer that allows to design, test and implement value propositions. It supports the Business Model Canvas by focusing on the 2 most important building blocks of a Business Model: the Customer Segment and the Value Proposition.
When the Value Proposition match the characteristics of the Customer Segment, we have the so called Problem-Solution fit. If there is a real market need for that Problem-Solution fit and customers wants it (it gets traction), we then have the so called Product-Market fit.
The Value Proposition Canvas consists of 2 parts:
- Customer segment profile:
It describes the characteristics of a customer in more details:
– Jobs (tasks, problems, needs) a customer is trying to perform in order to achieve a functional, social or emotional benefit.
– pain (undesired costs, situations, negative emotions and risks) a customer could experience before, during or after getting a job done.
– gain (functional utilities, social gains, positive emotions and costs saving) a customers requires, expect, desire or would love to have.
- Value Map
It describes which features of your value proposition (Product or Service) will address your customers most important jobs, pain and gains by eliminating pains (Pain Relievers) and creating benefits (Gain Greators).
Here is a 4.5 minutes overview of how the Value Proposition Canvas works: