“Working on the needs of your customers” … Easier said than done! There are, of course, ways in which you can help yourself. One of them is to use the value proposition canvas. This matrix is based on three axes:
Target Empathy: describes the confrontation of potential clients with a problem and their condition when they try to solve it, not to mention what they get in the end.
Creativity around solving the problems of this target: this time, it is a matter of imagining what could relieve customers as the problem is being solved, and the gains they would get from it.
Realism: Finally, concrete proposals are put on paper to help customers.
We use the value proposition canvas that we describe in detail in this article.
Working on the needs of its customers: value proposition canvas
Have you come up with your business idea?
OK. However, you must be sure that it corresponds well to the needs of your future customers. If your idea does not correspond to something your customer values, you’d better change your mind very quickly or evolve your idea, to avoid disillusionment and investments at a loss. Warning: Testing the validity of an idea is often more complex than you think. For example, just because an offer works somewhere (another city, another department, another country…) doesn’t mean it will walk on your territory. It all depends on the needs and uses of consumers in this particular territory.
We also invite you, as much as possible, to test your idea before you start, and validate it. The goal is to define, before launch, the product or service that is most in line with what users expect.
What is the value proposition canvas?
The value proposition is what allows customers to see whether the solution is meeting their problem and thus to learn more about the product or service. It’s kind of a promise about the future (“That’s what we bring you with our solution”).
The value proposition responds to a need that is not met or is insufficiently satisfied. It is ultimately what the customer is willing to pay. By extension, the value proposition outline is the method for defining the value proposition.
With this matrix, we focus on:
its problem and therefore its need;
the answer we’re going to provide.
The Value Proposal Canvas: A Matrix to Meet Needs
The value proposition (or “value proposition” canvas) is a tool that allows you to:
• validate your target or targets
• validate your target’s needs, problems, and hopes
• imagine how to respond in terms of benefits, offers, value proposition
These are the first steps toward the construction of the business model.
This matrix invites you to ask your customer about his pains, his gains… and which products/services will help him solve his pains and create his gains. Thus, you will eventually be able to adjust your idea but also find complementary products/services to offer your customer. It will also allow you to differentiate yourself from your competitors.
How to use the value proposition canvas
The matrix of the canvas is composed of two parts that mobilize different postures: empathy toward the audience and creativity. We will detail each of these parts.
Empathy toward the audience
In the right part of the canvas (round), you find several sections. They will allow you to clearly define your client’s problem and his state of mind.
In the “Customer Jobs” section: describe what a specific segment of clients is trying to do, or the problems they are trying to solve, or the needs they are trying to address. Describe what your customer is trying to do, with whom if necessary, in what context he acts, and possibly what emotional context he seeks, as well as the actions he takes.
In the “Pains” section: indicate negative emotions (anxiety, shame, fear, etc.), costs, undesirable situations, and the risks your customer experiences or could experience before, during, and after they work on their jobs to be done.
For example: What does the customer find too expensive? What makes him uncomfortable? What solutions are insufficient for your customer? What difficulties, challenges meet the customer? What risks is your client afraid of? What keeps your customer awake at night? What common mistakes does your client make? What barriers can prevent the customer from adopting your solution?
In the “Gains” section: describe the expected benefits your client expects (joy, simplification, higher social status, etc.) or the benefits that would surprise him/her, including functional utility, social gains, positive emotions, and cost savings.
For example: What are they looking for? What are they dreaming about? How does your client measure success, failure? What increases the likelihood of adoption of a solution? What advantage seems most relevant? What benefits does your client expect? What benefits would he be surprised to get? What savings would make your client happy? What is your client’s expected result? How do current solutions delight the customer?
How can we help you accelerate your growth?
In the face of disruption, most business leaders need to evolve fast but don’t have a process to unlock growth and enable change. Vision Platform offers a game-changing framework that equips your team to unify its vision, build a culture of innovation, and reinvent your future through transformation.