The Value Proposition Canvas - How to match your Services with Customer Needs
The Value Proposition Canvas Explained
A Value Proposition Canvas is a tool that can be used to ensure that the item or product is designed on the basis of what the customer wants and desires.
It's a comprehensive analysis of the relation between two elements of Osterwalder's larger Business Model Canvas, customer segments and value propositions. While these components interact in intricate ways, a value statement is a straightforward statement focused on customer-related jobs and your service or product.
What is a value-proposition? The value Proposition is a clear description of the service you give to your customers, Your value proposition should satisfy a customer need through the completion of tasks for customers to gain.
The Digital Leadership Value Proposition Canvas breaks down your business plan into manageable sections. We also talk about customer research to ensure that your services and products are matched to the clients you wish to draw.
Value Proposition Canvas Structure
Customer Profile: Customer Jobs to be Done
The section on Customer Profile in the Value Proposition Canvas is centered around customer needs. We're using the capital "N" here to fully convey the main reason customers trust their product or service. Although this could involve complex psychology and motivational theories The core of Need is the alleviation of a problem.
Product Value Map: Your Products or Services Map
In the Products or Services in accordance with what your company's nature is) area of your Canvas You are specifically thinking about the services you're providing to customers. As a reference to the latest methods of marketing, the section also includes the Experience you're offering your customers. For instance, we know that people don't visit their preferred cafes for the sake of having the finest coffee, but also because it offers the best experience that is able to satisfy the emotional and psychological requirements of its patrons.
A Product Value Map contains:
It is recommended that you start creating the Elevator Pitch right away in order to create an initial draft to tweak (we like terrible drafts!). You can then modify the pitch as you go.
The Elevator Pitch follows a standard structure:
For [your target customer], who has [your customer’s need], [your product or service] is a [market category] that [one key benefit], unlike [the competition], the product [unique identifier].
A feature is a description of the product's functionality. This section should describe the functions of your product. You should also include reasons why your customer should believe in you (i.e. the reasons they should trust your product7). How are you and your vice president credible?
Your VP's core focus is on the benefits your product provides to customers. Your customer will be able to enjoy the benefits of your product by solving their problem quickly and with minimal pain. Your value proposition is built around the benefits of your product. Start by listing all the benefits your product could bring to your customer's lives.
Product experience refers to the overall effect of all features and benefits on the customer's perceptions. The product experience is not about features and benefits. It's much more about the emotional reasons people purchase your product and how it impacts their lives. Your brand's essence and market positioning will be shaped by your product experience.
How to Use the Value Proposition Template
Your organisation has several options to help you complete the Value Proposition template. These steps will encourage innovation.
These are the steps you should take to complete your template.
Always start with your customers
- Select a customer segment. It is important to stay focused.
- Understanding your customers' needs. Consider customer pains.
- Customer Expectations Are you able to deliver the expectations of your customer?
- Identify the segments of your customers. Find ways to match their needs with you own value proposition.
- Lay out your customer fears. Have the products and/or services that customers can use to feel better about themselves.
Consider the Value Proposition Section
- Get to know your products and services. Gain a better understanding of the benefits your service provides customers.
- Identify the fear relieving products and services that customers use.
- Write an elevator pitch to describe how your service will benefit customers.
- Make a list of your service or product value maps and explain how it will help customers.
Analysing Competing Solutions
- Are there any substitutes for your product?
- What can customers expect from businesses in your sector?
- Are you fully considering your customers for services?
- Are your competitors creating positive social outcomes that are different from yours?
- What kind of inertia could make your customers resist change in your business?
Before you begin to complete the template, you need to answer several questions. Although this list is not comprehensive, it can be used as a starting point.
- What are the key issues that customers need to be aware of in order to move forward? These issues could be regulatory or environmental.
- Where are the pains and gains of your customers? Get to know your customers.
- What can you do to reach new customer segments? What can you do to increase your competitive advantage?
- What are your customers' most pressing needs? Pay attention to your customers' most pressing problems.
- What emerging technologies are customers using? Don't miss innovation that most businesses are using.
- What are the competitive advantages and disadvantages of your competitors? What can you do to ensure your company provides similar customer experiences?
- Is it easy to get the resources you need to implement your business model? And how much does it cost? Make sure you have everything you need to implement your brand strategy.
Why using the Value proposition Canvas might be Not Effective?
The tool doesn't have any significant features that could be considered a disadvantage. The canvas can only cause harm if it is used incorrectly. Here are some examples of wrong usage.
Loss of distinction
Two parts make up the tool, which we have already discussed. Although they are interrelated, each component is an independent unit. You can make the biggest mistake with the canvas by not separating these parts and treating them as one canvas. There are two ways to specify components. The components on the right are out of your control. However, the ones on the left are things you can modify or improve.
Overloading customer segments
Railsware's video about the Uber value proposition canvas was very attentive. You will notice that we only looked at one customer segment, passengers. It is easier to analyse a different template that deals with drivers. You can also narrow the segment by age, social status, and interests. You will need a separate canvas for each user category. It is a big mistake to combine all of them in one chart. This makes it harder to identify the most important jobs, pains, or gains. The result is that the left side of your product will become misfocused and your product's value will drop.
Filling in the wrong way
It is important to fill the value map in the right order. If you go from left to right, it will help you determine the product's demand. You'll fail to see what customers actually need if you do it the other way. The right side of the canvas is independent from the left, which aims to achieve as many customer profile issues as possible.