If you really care about your customers, really want to understand them, then the value proposition canvas is a tool that will transform how you innovate and market your business.
The Value Proposition Canvas was developed by Alexander Osterwalder and Yves Pigneur to complement the Business Model Canvas. One of the biggest problems when designing a buiness model is how to create value – often people struggle with this.
That’s where the Value Proposition Canvas book comes in. It makes creating a value proposition easier, plus it is packed full of useful tips, advice and resources.
In a nutshell, the value proposition canvas is a transformative approach to understanding value and designing products or services that customers want.
It builds on the inspiring work of the late Clayton Christensen, one of the greatest academics and thought-leaders of our time.
He developed the concept of jobs to be done – which can be found in his book Competing Against Luck. In his words:
Success doesn’t come from understanding the customer. It comes from a deep understanding of the job the customer is trying to get done.Clayton Christensen
I hope you enjoy the guide, it is full of resources, tips and free pdf templates. Note: The free templates are available at the bottom of the article.
After reading this you will be able to confidently craft value propositions that influence customers to take action.
Telling people you have a great product doesn’t make them want it.
You can produce an awesome product with all the bells and whistles, but if it fundamentally doesn’t help customers, or you don’t explain the value clearly, they won’t buy it.
In the factory we make products, in the drugstore we sell hope.Charles Revson – Founder of Revlon
The why is missing? Understanding why customers buy is at the heart of the value proposition canvas.
Free Value Proposition Canvas Downloads
Why Use the Value Proposition Canvas
- According to an article in FastCompany, “Why Most Venture-Backed Companies Fail,” 75 per cent of venture-backed startups fail.
- After four years 56% of small businesses fail.
- 97% of seed or crowdfunded companies eventually die or become “zombies.”
Many of the reasons for these failures can be traced to not understanding the customer and not defining the value – the what’s in it for me – to the customer.
The popularity of the value proposition canvas stems from it now being used by intrapreneurs and entrepreneurs alike. It has become a necessary step in the innovation process.
When you clearly communicate to a customer what you offer you have a far higher chance of them taking action – whether that is signing up, adding a product to cart, buying a product or trialling it.
Ways in which the value proposition canvas will help you to grow your business:
- Customer focus: provide you with a clear process for identifying what a customer is trying to achieve and how the experiences.
- Prioritizes value: the process of developing a value proposition forces you to prioritize what’s important to the customer and select value propositions that have the potential to motivate a customer to take action.
- Provides context: value propositions are often relevant in certain situations and not others. Value changes according to the customer, their situation (e.g. location), why they are trying to get a job done.
- Narrows the Gap: The process improves innovation outcomes and lowers failure rates. It isn’t a magic bullet but it reduces the risks of innovating based on ideas only.