VALUE PROPOSITION CANVAS 101

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VALUEPROPOSITIONCANVAS 101EMAD SAIFEducator & Entrepreneur@esaif

VALUE PROPOSITIONDescribes the benefits customers can expect from yourproducts & servicesVALUE PROPOSITIONPRODUCT / SERVICECUSTOMER

PRODUCT /SERVICECUSTOMERNOT EASY

#1STARTUPMISTAKEBuildingSomethingNobody Wants

BIGCHALLENGEStartupEnterpriseWasted time & resourcesUnproductive meetingsUncommon languageProductFailure

Need better approachfor creating value forcustomers & loweringrisk of failure!

VALUE PROPOSITION CANVAS

Value Design TestsPrioritizeTestsour focusRunTestsCaptureLearningsMakeProgress

Value Proposition Canvas (VPC)

9buildingblocksBusiness Model Canvas

Business Model Canvas

FIT?Value MapThe set of value propositionbenefits that you design toattract customersCustomer ProfileThe set of customercharacteristics that youassume, observe and verifyin the market

Value Proposition Canvas (VPC)gain creatorsgainsproducts &servicesjobspain relieversValue MappainsCustomer Profile

PRODUCT INSPIRED INNOVATIONValue MapCustomer Profile

CUSTOMER INSPIRED INNOVATIONValue MapCustomer Profile

Customer Profile OverviewOBJECTIVE:Visualize what matters to yourcustomers in a sharable format1Download theCustomer ProfileCanvasOUTCOME: 1 page actionablecustomer profile2Grab a Set ofSmall StickyNotes3Map Out YourCustomerProfile

Choosing aCustomer Segment

Customer SegmentDefinition:The groups of people or organizationswho share similar characteristics that youaim to reach and create value for them

MARKET sage RatesPersonality& InternationalEthnicBackground

Taxi Passengers in Amman, Jordan1. Customer SegmentTaxi Passengers in Ez

2. Customer JobsWhat customers are trying to get done?Call TaxiFind TaxiGivedirectionsPay

3. Customer PainsWhat annoys the customer before,during & after getting job doneCall TaxiFind TaxiGivedirectionsWait along timeUnsafedriverCompete withother customersOverchargedby TaxiPay

4. Customer GainsWhat outcomes & benefits customerswant?EasypaymentFair priceArrive ontimeCall TaxiFind TaxiprofessionalGivedirectionsWait along timeUnsafedriverCompete withother customersOverchargedby TaxiPay

5. RankingWhat is the customer priority?EasypaymentFair priceArrive ontimeCall TaxiFind TaxiprofessionalGivedirectionsWait along timeUnsafedriverCompete withother customersOverchargedby TaxiPay

5. RankingWhat is the customer priority?Fair priceprofessionalRankedEasypaymentWait along timeOverchargedby TaxiCall TaxiFind TaxiGivedirectionsPayCompete withother customersUnsafedriverRankedRankedArrive ontime

Customer Profile SummaryOBJECTIVE:1SelectcustomersegmentVisualize what matters to yourcustomers in a sharable format2IdentifycustomerJobsOUTCOME: 1 page actionablecustomer s5Prioritizejobs, pains& gains

Value Map OverviewOBJECTIVE:1Describe explicitly how yourproducts and services create valueGrab the CustomerProfile you previouslycompleted2Download theValue Map CanvasOUTCOME: 1 page map of valuecreation3Grab a Set ofSmall StickyNotes4Map out how youcreate value foryour customers

1. Products & ServicesWhat you offer customersArrive ontimeFair priceprofessionalTaxiSmartphoneAppEasypaymentWait along timeOverchargedby TaxiCall TaxiFind TaxiGivedirectionsPayCompete withother customersUnsafedriver

2. Pain RelieversHow exactly your products and servicesalleviate specific customer painsArrive ontimeFair priceprofessionalEasypaymentTaxiSmartphoneAppNo CashInstantbookingAssigneddriverCostSystemWait along timeOverchargedby TaxiCall TaxiFind TaxiGivedirectionsPayCompete withother customersUnsafedriver

3. Gain CreatorsSave rsHow your products and services createcustomer gainsArrive ontimeFair priceprofessionalVisual MapNo entWait along timeOverchargedby TaxiCall TaxiFind TaxiGivedirectionsPayCompete withother customersUnsafedriver

Save rsVisual MapNo CashInstantbookingAssigneddriverCostSystemProducts & ServicesRank products &services from niceto have to essentialPain RelieversRank pains from niceto have to essentialGain CreatorsRank gains from niceto have to essential

RANKEDSave TimeProfessional driversRating SystemVisual stSystemNo CashProducts & ServicesRank products &services from niceto have to essentialPain RelieversRank pains from niceto have to essentialGain CreatorsRank gains from niceto have to essential

Ranked VPCSave TimeProfessional driversRating SystemVisual stSystemNo CashArrive ontimeFair priceprofessionalEasypaymentWait along timeOverchargedby TaxiCall TaxiFind TaxiGivedirectionsPayCompete withother customersUnsafedriver

Value Map SummaryOBJECTIVE:Describe explicitly how yourproducts and services create value1List productsand services2Outline painrelieversOUTCOME: 1 page map of valuecreation3Outline gaincreators4Rank by orderof importance

Fit OverviewOBJECTIVE:Verify if you are addressing whatmatters to customersOUTCOME:Connection between yourproducts and services andcustomer jobs, pains, and gains1Bring in the Value Proposition Map andCustomer Segment Profile you completedearlier.2Go through Pain Relievers and Gain Creatorsone by one, and check to see whether they fita customer job, pain, or gain.3Put a check mark on each one that does.

Taxi Smartphone ApplicationSave TimeProfessional driversRating SystemVisual stSystemNo CashArrive ontimeFair priceprofessionalEasypaymentWait along timeOverchargedby TaxiCall TaxiFind TaxiGivedirectionsPayCompete withother customersUnsafedriver

Test Your Customer AssumptionsBest Fitwrongassumptions!Customer

Adjust &Redesign

1Best Fit2n

Taxi Smartphone Appad-libVALUEPROPOSITIONTEMPLATETaxi passengersbook a taximinimizingenjoyingwaiting time for a taxiaffordable pricesTypical taxi services by phoneStrategyzer.com/vpd

Business Model Canvas . Business Model Canvas . The set of value proposition benefits that you design to attract customers . The set of customer characteristics that you assume, observe and verify in the market . FIT? . TEMPLATE

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Template & example Make a large printout of the Value Proposition Canvas template (page 5) and use this in a brainstorm with colleagues. Have a look at the Example for AirBnB to learn how the Value Proposition Canvas can be applied in practice. How to use The value proposition canvas

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Clarifying Your Value Proposition 14 Ask Your Customers 16 More Ideas to Find Your Value Proposition 19 Value Propositions & New Products 22 Using Your Value Proposition 24 Exercise I: Finding Your Value Proposition 25 Exercise II: Writing Your Value Proposition 27 Sales Tools 29 jill@jillkonrath.com Jill Konrath 2012 2 Irresistible Value .

The goal of the Value Proposition Designer Canvas is to assist you in designing great Value Propositions that match your Customer's needs and jobs-to-be-done and helps them solve their problems. This is what the start-up scene calls product-market fit or problem-solution fit. The Value Proposition