How does the Value Proposition Canvas impact the customer experience?
Let's first talk about the value proposition, what is that? Simply put, the value proposition of your business is that "something" for which a...
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If you have ever googled "business model", "value proposition" or similar terms, you will have come across Strategyzer. Strategyzer is a strategy and operations consulting firm, which aims to make practical tools available to all business strategy professionals, and their website puts it like this: "We love to build products and create experiences that benefit people, organizations and society". Its co-founder is Alexander Osterwalder, known for creating tools used worldwide, such as: Business Model Canvas, Value Proposition Canvas and Business Portfolio Map.
Index
The Value Proposition Canvas is a tool that facilitates the in-depth analysis of two of the blocks of the Business Model Canvas: Market Segments and Value Proposition. This canvas allows the value proposition to become visible and tangible, therefore easier to create and manage. Moreover, it matches the needs of the potential market.
Before I go further into the explanation, I would like to refresh you on what the two BMC blocks mentioned above consist of.
While the Business Model Canvas helps you create value for your business, the Value Proposition Canvas helps you create value specifically for your customers. To learn more about the Business Model I invite you to the following blog: Business Model: what is it and why is it important?
As I mentioned in another blog, if you have a business idea in mind and you are planning to launch it, you must have a guide that captures the necessary elements for its operation, otherwise, it would be like starting the construction of a house without having the plans ready. By placing your idea under the microscope of the Value Proposition Canvas, you will be able to visualize more clearly who your customers are, what their habits are and what problems they have that your business can solve. But this tool is not only useful for an idea in process, but also applies to existing organizations.
If you are starting from scratch, you will first have to design your business model, which will be made easier by using the Business Model Canvas, as you will define the 9 building blocks that will make your business work. Then, you will have to zoom into that model and define more specifically the value you will bring to customers. If your company is already up and running, but you don't have a defined business model, you can perfectly apply the same strategy as above.
Designing the canvas is the first step, then you will need to validate what you have put on paper with your customers, test your value proposition and analyze the market response. This test will help you to fine-tune your proposition and improve it more and more.
If you want to learn more about business model patterns, I invite you to read the following blog: 14 successful business model patterns.
The Value Proposition Canvas consists of two parts: Value Map (left) and Customer Profile (right).
Describe the characteristics of your value proposition in detail, specifying the products and services offered, how you alleviate pains or frustrations and how you create benefits for the customer.
Describes a market segment in a specific and structured way, detailing the client's work, frustrations, and joys.
The objective is that both the customer profile and the value map fit perfectly and work in harmony, and this synchronization is achieved when the products and services that make up the value proposition respond to the frustrations and solutions expected by the customers. It should also be clarified that this analysis should be developed for each market segment as they will have different pains and motivations.
Functions and benefits
Value Proposition Canvas is used to:
The advantages of using the canvas are:
For a visual and dynamic explanation, you can watch the video published by Strategyzer: Value Proposition Canvas Explained.
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