The Value Proposition

Hafa adai and welcome to Strive’s first post.

I know I have my first post scheduled for August 5, but I’m excited and thought this brief introduction to a major component of the business model canvas (BMC) was important to share with you.

The component I would like to dig into today is the value proposition. It plays a key role in your business model, and is literally the center of the BMC. It is so important in fact, that there is a value proposition canvas (VPC).

the-value-proposition-canvasValue-Proposition-Canvas

The VPC is made up of two parts that integrate in order to create the value your business needs to provide. The first part of the VPC is the right side of the picture above called the customer profile. The customer profile is made of three components that revolve around your target customer.

The Customer Profile

Customer Jobs

The first section that we need to identify is the customer jobs. These are the things that your customer has to do through daily life or likes to do as a hobby. So first, you want to identify what your customer does.

Pains

The second section is the pains, what are the issues or inconveniences that happen when your customer does their job. What obstacles do they have to overcome? Identify what those pains are.

Gains

The third section is gains. What does the customer get out of doing the job? What benefits do they receive that makes it worth doing the job? Identify those gains.

The Value Map

The second part of the VPC is the value map. The value map is also made up of three sections that coordinate with the three on the customer profile side.

Products and Services

The first section is the products and services. If you are a startup, then you would include the products and services that you are planning on providing to your customers. If you are a growing business then write in the new products or services that you would like to add.

Pain Relievers

Now, in the pain relievers section,  you are going to identify how your products and services alleviate the customers pains. This is how you are creating value for your customer. The customer still has to do the job, but you are making it easier for them with your product or service. If your not, then those products and services need to be changed.

Gain Creators

The last section is gain creators. Gain creators is how your products and services affect the customer positively. The customer not only gets the job done, but benefits more by having used your product or service.

silver and gold coins
Photo by Pixabay on Pexels.com

True Value in your Value Proposition

True value comes when your products and services are able to relieve the pains and increase the gains that the customer receives when doing their jobs.

Remember that the best products and services solve a problem. You need to find solutions to your customers problems and help them capitalize on their rewards to create happy customers.

Ta Da!

I hope this was helpful. If it was don’t miss out on the coming series for the Business Model Canvas. The first post is coming out this Sunday on August 5.

If you really don’t want to miss please drop your email in the subscription bar and I’ll have it sent straight to your email.

Go forth and shine.

E.B.

 

Still confused? Here is a short video on how to use the Value Proposition Canvas from Strategyzer.

 

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