Every day, companies design products and services to improve customers' lives. But 72% of new products and services innovations fail to deliver on expectations. This means that customers don't care about 7/10 products that are introduced to the market. It doesn't have to be this way.
A Value Proposition Canvas helps you achieve a better fit by better understanding your customer, the jobs they want to complete, and their pains and gains while trying to do so. By identifying which products, functions, or services relieve pains and create gains.
Just like you create value for your business with a Business Model Canvas, there is a tool to visualize, design, and test how you create value for customers.
It's called a Value Proposition Canvas. The VPC is composed of two parts:
With the Customer Profile, you describe the jobs your customer is trying to get done. Jobs can be functional, social, or emotional. A functional job can be as simple as getting from A to B. A social job can be impressing friends and colleagues. In contrast, an emotional job can be obtaining peace of mind.
You highlight your customer pains, which annoy customers while they try to get their job done. Pains are negative outcomes that customers hope to avoid, like dissatisfaction with existing solutions and challenges, frustrations, risks, or obstacles related to performing a job.
You outline customer gains, which describe how customers measure the success of a job well done. Gains are positive outcomes that customers hope to achieve. Like concrete results, benefits, and even aspirations.
Use the Customer Profile to visualize, test, and track your understanding of the people or companies you intend to create value for.
It's a map that becomes clearer, the more you learn about your customers.
The second part of the canvas is the value map. With it, you list the products and services your value proposition builds on. You describe in which way these products, services, and features are pain relievers. How they eliminate, reduce, or minimize pains customers care about. Making their lives easier.
You outline in which way they are gain creators. How they produce, increase, or maximize outcomes and benefits that your customers expect, desire, or would be surprised by.
The value map makes explicit how your products and services relieve pains and create gains. Use it to design, test, and iterate your value proposition until you figure out what resonates with customers.
You achieve fit by creating a clear connection between what matters to customers and how your product, services, and features ease pains and create gains.
Great value proposition target essential customer jobs, pains, and gains and do so exceptionally well. Your customer profile may contain countless jobs, pains, and gains, but your value map highlights which ones you intend to focus on.
Don't forget: A great Value Proposition can still fail if your business model is flawed. Successful companies embed outstanding value propositions and scalable and profitable business models. Use the value proposition canvas to create products and services customers want.