Value Proposition Canvas is a business model tool that helps ensure that a company’s product or service is positioned around customers’ values and needs. Alexander Osterwalder, Yves Pigneur, and Alan Smith created the tool. The same authors of the Business Model Canvas aimed to map the value perceived by customers.
Therefore, the primary purpose is to create a fit between the product and the market. For this to happen, the Value Proposition Canvas explores these two (out of nine) blocks from the Business Model Canvas: Customer Segment and Value Proposition more deeply.
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As said before, Value Proposition Canvas comprises only two blocks — Value Proposition and Customer Segment. They are the core of the business model because they focus on “What” and “To whom.” In other words, how your company delivers value to your audience.
The canvas is divided into two sides: on the right side is the Client Profile. And that is divided into Jobs-to-be-done, Pains, and Gains. On the left side is the Value Proposition, subdivided into three: Products & Services, Gain Creators, and Pain Relievers. Let’s check each one out:
This is about what your customer is trying to do. You must include all tasks customers are trying to perform, the problems they are trying to solve, and the needs they want to satisfy. It’s also important to note the frequency and importance of each job, all the different roles the customer has to play, and in what contexts. To fulfill this step, you may ask yourself: