THE VALUE PROPOSITION CANVAS

As mentioned in the previous unit, the Value Proposition Canvas consists of two blocks: Value Proposition and Customer Segment. The purpose of this tool is to help design them within a simple and visual framework.

FINDING THE FIT

The purpose of the Value Proposition CANVAS is to help you design a value proposition that fits with the needs of customers and the so-called jobs-to-be- done (work to be done or customer tasks) that helps them solve their problems. This is what Lean Startup calls market-product fit or problem-solution fit.

Source: Osterwalder, A. Value Proposition Design: Como Construir Propostas de Valor Inovadoras, Ed. Alta Books,2019

CUSTOMER TASKS

Get a better look at customers by designing their profile. You need to look at three things to do this. Start by describing what your customers are trying to do.

• Tasks they are trying to accomplish or complete
• Problems they are trying to solve
• Needs they are trying to satisfy

Source: Osterwalder, A. Value Proposition Design: Como Construir Propostas de Valor Inovadoras, Ed. Alta Books, 2019

You can delve deeper into this information by seeking answers to the following questions:

• What functional tasks are your customers trying to accomplish? (e.g. problems they need to solve, tasks they need to complete, etc.)
• What social tasks are your customers trying to accomplish? (e.g., looking good in front of friends, family and colleagues, gaining status, getting promoted, etc.)
• What emotional tasks are they trying to accomplish? (e.g. aesthetics, feeling good, safety, etc.)
• What basic needs do they want to satisfy? (e.g. communication, sex, hygiene, etc.)

CUSTOMER PAINS

Describe the negative emotions, costs and unwanted situations, risks and other bad experiences that your customer may experience before, during or after the tasks listed above.

Source: Osterwalder, A. Value Proposition Design: Como Construir Propostas de Valor Inovadoras, Ed. Alta Books, 2019

Questions you need to ask to complete this step:

• What does your customer find too expensive (e.g.: takes too long, costs too much, requires too much effort, etc.)
• What makes your customer feel bad? (e.g.: frustrations, annoyances, things that give you a headache, etc.)
• How are current solutions falling short for your customers? (e.g. lack of features, performance, defects, etc.)
• What are the main difficulties and challenges your customers encounter? (e.g. understanding how certain things work, difficulties in performing tasks, resistance, etc.)
• What negative social consequences do your customers face or fear? (e.g. being disrespected, losing power, trust, status, etc.)
• What risks are your customers afraid of? (e.g., financial, social, technical or what could go very wrong in their lives?)
• What is keeping your customers up at night? (e.g. major issues, concerns, challenges, etc.)
• What common mistakes do your customers make? (e.g. errors in use, understanding, expectations, etc.)
• What barriers are preventing your customers from adopting new solutions to their problems (e.g., initial investment, learning curve, resistance to change, etc.)

CUSTOMER GAINS

Now describe the benefits that your customers expect, want or would be positively surprised if it existed. This includes functional utility, social gains, positive emotions, and cost savings.

Source: Osterwalder, A. Value Proposition Design: Como Construir Propostas de Valor Inovadoras, Ed. Alta Books, 2019

Questions you need to ask to complete this step:

• What ways to save would make your customers happy? (e.g. in terms of time, money, effort, etc.)
• What results do your customers expect and what would go beyond their expectations? (e.g. quality level, more of something, less of something else, etc.)
• What current solutions delight your customers? (e.g. specific features, performance, quality, etc.)
• What would make your customers' tasks easier for them? (e.g., shorter learning curve, more services, lower cost of ownership, etc.)
• What positive consequences do your customers want? (ex: look good, increase power, status, etc.)
• What are your customers looking for? (e.g., beautiful design, warranties, more specific features, etc.)
• How does your customer measure success and failure? (e.g. cost, performance, likes on social media, etc.)
• What would increase your customer's chances of adopting a solution? (e.g. lower cost, lower investment, more warranty, performance, design, etc.)