Value Proposition Canvas Activity Guide - REDFworkshop
Value Proposition Canvas – Activity Guide The Value Proposition Designer Canvas is like a plug-in tool to the Business Model Canvas. It helps you design, test, and build your company’s Value Proposition to Customers in a more structured and thoughtful way, just like the Canvas assists you in the business model design process. 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 Designer Canvas helps you work towards this fit in a more systematic way. Step 1 - What can we observe? Customer Jobs-to-be-done Start by describing what the customers you are targeting are trying to get done. It could be the tasks they are trying to perform and complete, the problems they are trying to solve, or the needs they are trying to satisfy. Functional Job: What functional job is your customer trying to get done? (perform or complete a specific task, solve a specific problem) Social Job: What social job is your customer trying to get done? (trying to look good, gain power or status) Emotional Job: What emotional job is your customer trying to get done? (esthetics, feel good, security) Basic Needs: What basic needs is your customer trying to satisfy? (communication, nutrition, belonging, etc.) 1
Customer Pains Now describe negative emotions, undesired costs and situations, and risks that your customer experiences or could experience before, during, and after getting the job done. Rank each pain below according to the intensity it represents for your customer. Is it very intense (10) or is it very light (1). For each pain indicate how often it occurs (wkly, mthly, etc.) Ask yourself: 1 Customer Pain Cost: What does your customer find too costly? (takes a lot of time, costs too much money, requires substantial efforts) 2 Feeling Bad: What makes your customer feel bad? (frustrations, annoyances, things that give them a headache) 3 Performance of Known Competition: How are current solutions underperforming for your customer? (lack of features, performance, malfunctioning) 4 Main Difficulties & Challenges: What are the main difficulties and challenges your customer encounters? (understanding how things work, difficulties getting things done, resistance) Intensity Frequency 2
5 Negative social consequences: What negative social consequences does your customer encounter or fear? (loss of face, power, trust, or status) 6 Risks: What risks does your customer fear? (financial, social, technical risks, or what could go awfully wrong) 7 Keeps Awake at Night: What’s keeping your customer awake at night? (big issues, concerns, worries) 8 Common Mistakes: What common mistakes does your customer make? (usage mistakes) 9 Barriers: What barriers are keeping your customer from adopting solutions? (upfront investment costs, learning curve, resistance to change) INTENSITY OF EACH ITEM WILL/MAY DEPEND ON THE INDIVIDUAL or CUSTOMER SEGMENT 3
Customer Gains Now describe the benefits your customer expects, desires or would be surprised by. This includes functional utility, social gains, positive emotions, and cost savings. Consider each gain listed below according to its relevance to your customer. Is it substantial or is it insignificant? Ask yourself: 1 Savings: Which savings would make your customer happy? (time money and effort) 2 Outcome Expectations: What outcomes does your customer expect and what would go beyond his/her expectations? (quality level, more of something, less of something) 3 Current Solutions – Delight?: How do current solutions delight your customer? (specific features, performance, quality) 4 Life or Job – Easier? : What would make your customer’s job or life easier? (flatter learning curve, more services, lower cost of ownership) 5 Positive Social Consequences: What positive social consequences does your customer desire? (makes them look good, increase in power, status) 4
6 What are customers looking for? (e.g. good design, guarantees, specific or more features 7 What do customers dream about? (e.g. big achievements, big reliefs) 8 How does your customer measure success and failure? (e.g. performance, cost) 9 What would increase the likelihood of adopting a solution? (e.g. lower cost, less investments, lower risk, better quality, performance, design) 5
Products & Services Now that you sketched out a profile of your Customer, let's tackle the Value Proposition. First, think about all the products and services your value proposition is built around. Products and services may either be tangible (e.g. manufactured goods, face-to-face customer service), digital/virtual (e.g. downloads, online presence) or intangible (e.g. copyrights, quality assurance, partnerships you have). Ask yourself which products and services you offer that help your customer get either a functional, social, or emotional job done, or help him/her satisfy basic needs? Rank all products and services according to their importance to your customer. Are they crucial or trivial to your customer? A B C D E F G H I J K L 6
Pain Relievers Now let’s outline how your products and services create value. First, think about how your products and services alleviate customer pains. How do they eliminate or reduce negative emotions, undesired costs and situations, and risks your customer experiences or could experience before, during, and after getting the job done? Ask yourself if they. produce savings? (e.g. in terms of time, money, or efforts, .) make your customers feel better? (e.g. kills frustrations, annoyances, things that give them a headache, .) fix underperforming solutions? (e.g. new features, better performance, better quality, .) put an end to difficulties and challenges your customers encounter? (e.g. make things easier, helping them get done, eliminate resistance, .) wipe out negative social consequences your customers encounter or fear? (e.g. loss of face, power, trust, or status. eliminate risks your customers fear? (e.g. financial, social, technical risks, or what could go awfully wrong, . help your customers better sleep at night? (e.g. by helping with big issues, diminishing concerns, or eliminating worries, . limit or eradicate common mistakes customers make? (e.g. usage mistakes, .) get rid of barriers that are keeping your customer from adopting solutions? (e.g. lower or no upfront investment costs, flatter learning curve, less resistance to change, .) Rank each pain your products and services kill according to their intensity for your customer. Is it very intense or very light? For each pain indicate how often it occurs. A B C D E F G H I J K L 7
Gain Creators Finally, describe how your products and services create customer gains. How do they create benefits your customer expects, desires or would be surprised by, including functional utility, social gains, positive emotions, and cost savings? Ask yourself if they. create savings that make your customer happy? (e.g. in terms of time, money and effort, .) produce outcomes your customer expects or that go beyond their expectations? (e.g. better quality level, more of something, less of something, . copy or outperform current solutions that delight your customer? (e.g. regarding specific features, performance, quality, .) make your customer’s job or life easier? (e.g. flatter learning curve, usability, accessibility, more services, lower cost of ownership, .) create positive social consequences that your customer desires? (e.g. makes them look good, produces an increase in power, status, .) do something customers are looking for? (e.g. good design, guarantees, specific or more features, .) fulfill something customers are dreaming about? (e.g. help big achievements, produce big reliefs, . produce positive outcomes matching your customer’s success and failure criteria? (e.g. better performance, lower cost, .) help make adoption easier? (e.g. lower cost, less investments, lower risk, better quality, performance, design, .) Rank each gain your products and services create according to its relevance to your customer. Is it substantial or insignificant? For each gain indicate how often it occurs. A B C D E F G H I J K L 8
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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
When to use the Value Proposition Canvas 8 How to Fill the Value Proposition Canvas - Step by Step Guide 10 Always Start with the Customer 10 Move on to the Value Proposition side 13 Additional Tips 16 Fit or Misfit 18 Value Proposition Canvas Examples 21 Tesla 21 Toyota 22 Airbnb 24 Harvard University Website 25 Apple Pay 26
addition, Value Proposition Canvas, which is one of the components of Business Model Canvas, has been proposed as a tool to further refine and design Value Proposition (Osterwalder . et al., 2014). Value Proposition Canvas is a canvas to confirm that the needs of the customer and the seeds of the business are consistent. This canvas has two
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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
3.2 Value Proposition Canvas The Value Proposition Canvas (VPC) describes the features of a specific value proposition in the business model in a more structured and detailed approach (Osterwalder et al., 2014). The VPC (figure 1) breaks the value proposition down into products & services, pain relievers and gain creators (on the left side). On the
HTML5 Canvas Sergio Luján Mora . 2 HTML5 & CSS3 Content Canvas Canvas reference HTML5 & CSS3 CANVAS . 3 HTML5 & CSS3 Canvas The canvas element provides an API for two-dimensional drawing—lines, fills, images, text, and so on The canvas is only a container for graphics, a
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 .
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