Value Proposition Canvas

What is a Value Proposition Canvas?

The Value Proposition Canvas is a tool which can help ensure that a product or service is positioned around what the customer values and needs. The canvas was initially developed by Dr Alexander Osterwalder and can be used when there is a need to refine an existing product or service offering or where a new offering is being developed from scratch.

The Value Proposition Canvas has two building blocks – customer profile and an organisation’s value proposition. 

In the Customer Profile block, we look at the following elements: 

  • Gains – the benefits which the customer expects and needs and the things which may increase likelihood of adopting a value proposition.
  • Pains – the negative experiences, emotions and risks that the customer experiences in the process of getting the job done.
  • Customer jobs – the functional, social and emotional tasks customers are trying to perform, problems they are trying to solve and needs they wish to satisfy.

A customer profile is created for each customer segment, as each segment has distinct gains, pains and jobs.

In the Value Map block, we look at the value proposition that an organization offers through its products and/or services, including: 

  • Gain creators – how the product or service creates customer gains and how it offers added value to the customer.
  • Pain relievers – a description of exactly how the product or service alleviates customer pains.
  • Products and services – the products and services which create gain and relieve pain, and which underpin the creation of value for the customer.

Why do a Value Proposition analysis?

The Value Proposition Canvas can help any business or organization to:

  • Define their customer profiles. By brainstorming and analyzing the Customer Profile block, companies can identify their customers’ major jobs-to-be-done, the pains they face when trying to accomplish their jobs-to-be-done, and the gains they perceive by getting their jobs done;
  • Visualize the value your organizations’ product or service create. Define the most important components of your offering, how you relieve pain and create gains for your identified and targeted customers.
  • Achieve Product-Market fit. Adjust your Value Proposition based on the insights you gained from customer evidence and achieve Product-Market fit.

Who should use a Value Proposition canvas?

The Value Proposition Canvas is a great tool for marketing experts, product owners, and value creators and their teams, who work to develop products and services to a targeted audience. It is also valuable for any teams and organizations who are trying to understand how customers make decisions and what offers to create that they will find appealing. 

Use the Value Proposition Canvas to help with:

  • Understanding who your customers are, including what their lifestyles and real needs are to help create relevant products and services; 
  • Develop value propositions for your products and services for effective communications and marketing to your identified customers;
  • Increasing the sales and profitability of your products and services;
  • Reducing time wasted on developing ideas that customers may not be interested in.
Related templates
Facilitation tips

Value Proposition template

The Value Proposition template is divided into two sections:

The customer profile

On the right hand side of the template – identifies the customers’ Jobs To Be Done, which define what’s on our customer’s mind right now.

This section also looks at the Gains & Pains – the positive and negative states our customers want to attain/avoid.

The value proposition

On the left hand side of the template – is the place to list all the things that you are literally selling – like when car companies talk about airbags, leather seats and extended warranties.
In this section we look at how we describe our Product and Service Features. We also brainstorm the most relevant and interesting parts of what we sell, called Gain Creators and Pain Relievers, which gives us the best possible chance of making a sale.

How to do a Value Proposition analysis

Start a Value Proposition for a product or service by filling out the template and see where there are gaps. You can use the gaps as validation to run more experiments, ask more questions, try out new ideas. By understanding your customers’ preferences, biases and thoughts, you’ll find new ways to delight them and grow your business.

Tip To get the most from the Value Proposition activity, gather input from a range of participants with different perspectives. When you’re working with a large or distributed team, getting everyone together at the same time can be difficult, inconvenient, and costly. Using different technologies like video conferencing, online forms, and collaborative brainstorming software such as GroupMap can help overcome these challenges.

Brainstorm

Brainstorm ideas for each area of the Value Proposition canvas.

Group

Review responses, and collate ideas.

Rate

Rate the ideas according to likely impact on the organization.

Share

Share the outcomes of the session to relevant stakeholders.

Cross Device Compatibility

Save effort, time and money with GroupMap

Whether you have your best minds together in the same room, or distributed around the world, GroupMap’s unique technology allows groups of up to 2000 to submit ideas independently at separate times, from different places, in different timezones. Prevent dominant personalities swaying the group, drowning out the opinions of others – GroupMap allows everyone to brainstorm independently then effortlessly combines that information to reveal the full spectrum of ideas. GroupMap templates keep the objective front and center throughout the session, keeping everyone on task. This ensures the activity identifies actionable issues rather than becoming just a discussion on ideas. GroupMap gives you all the group decision making tools you need to prioritize, decide and take action.

Create your first map and invite people in to start sharing their thoughts right NOW. Experience the power of GroupMap with our 14-day, no risk, FREE trial. You don’t even need to provide your credit card details to access to all of our features, including the entire suite of templates, for a full 14 days.