70% of products fail to meet customers’ expectations, generally as a result of a lack of strategic research before the launch.
Luckily, we now have various tools and techniques for determining whether a product is in demand. A value proposition canvas (VPC) is one such tool. VPC aims to simplify product strategy by bringing all the important information inside an intuitive diagram.
To help you truly benefit from the value proposition canvas, we have created this guide that answers the following questions: What exactly is a value proposition canvas?
- How does it work?
- How to fill it?
- And what are its key benefits?
Let us begin.
What is a value proposition canvas?
A value proposition canvas is a template that simplifies the product discovery process. It aims to clarify whether a product will succeed or fail by assessing market needs and compatibility.
By understanding specific customer pains and desires - and connecting them to clear and tangible product benefits, this canvas helps you develop precisely useful products/services for the end user.
The canvas is divided into two sections:
- Customer Segment
- Value Proposition
Value Proposition Canvas - Sections and How to Fill Them
Here is a breakdown of each section of the value proposition canvas and some tips for filling them in correctly.
Customer Segment
The value proposition diagram is divided into two shapes: the circle and the square. The circle represents the customer segment. We recommend starting to fill in the canvas from here, as it will make completing the other section easier.
It is the first and most important part of the canvas as it helps you gain perspective on your customers and the products they need, desire, or expect. The circle has three subsections: customer jobs, pains, and gains.
1. Customer Jobs
Customer jobs refer to any action a customer takes to resolve a specific problem. For example, if a customer is hungry but doesn’t want to leave their home, they’ll perform the “job” of using a food delivery app on their phone and placing an order.
How to Fill it
Brainstorming over the following ideas can help you fill this section:
- Specific functions your ideal customers perform to solve specific issues
- Actions that make your customers feel fulfilled
- Things that motivate your customers to act a certain way. They could be emotional or social motivators.
2. Pains
Pains are the things that restrict your customers from doing something or negative results that they want to avoid. For example, a person might want to avoid an uncomfortable sleep on an old mattress.
The pains can range from light to severe, and it’s your job to prioritize them before developing a product.
How to Fill it
Here are some things to think about to make filling this unit easier:
- Things that make your customers feel bad, anxious, scared, or any other type of negative emotions
- Things that do not fit the needs of your customers
- Critical challenges your customers face in your particular area of interest
3. Gains
Gains are all the actions that bring positive results and feelings. They are the things your customers want to achieve or particular problems they wish to solve.
It is noteworthy that gains are not the opposite of pains. Instead, they are the reasons that encourage an individual to invest in a product or a service. For example, a person might invest in a healthy food delivery service to achieve weight loss.
How to Fill it
Some ideas to help you fill this part are:
- The results your customers expect
- Results that can surpass your customers’ expectations
- Results that make your customers feel positive emotions (happiness, satisfaction, relaxation, etc.)
Value Proposition
The square part of the diagram represents the value proposition section. The “customer segment” will act as your guide in filling this part. It deals with all the qualities your product/service needs to be successful.
“Value Proposition” is divided further into three parts.
1. Products and Services
This section outlines all your products and services. You can also include secondary details like the type of product/service, features, benefits, etc.
How to Fill it
We recommend ranking each product/service as ‘nice to have’ and ‘essential.’ This will clarify which products are in most demand and which products are complementary, ultimately simplifying product discovery.
2. Pain Relievers
It directly corresponds to the “pains” section in the customer segment. The goal of this block is to list all the ways your product/service can resolve the pains of your customers. Briefly listing each pain and pain reliever is enough.
How to Fill it
Think about different types of products/services that will:
- Save customers’ time, money, or energy
- Bring out positive emotions in the customer concerning the specific pain points
- Overcome the defects that are present in other products of a similar nature/niche
- Solve the problems your customers are facing
- Reduce the barriers your customers face in reaching a particular solution
3. Gain Creators
This section relates to the “gains” section in the customer segment. It aims to help you determine the specific benefits and value your customers will experience through your products. Anything that improves the user experience goes here.
How to Fill it
Consider different types of products or services that will:
- Meet the expectations and desires of your customers
- Simplify the lives of your customers
- Helps your customers achieve a positive result
- Helps your customers achieve a particular vision(e.g., a product that could charge your phone without the hassle of wires, i.e., a wireless charger)
Measurable Benefits of Value Proposition Canvas
Better Product Discovery
The most concrete benefit of the VPC is its role in product discovery.
It clearly lists every problem, solution, challenge, and benefit to help you determine whether the market needs your product. It also covers aspects of competitive research to determine if anything sets you apart from other players.
Ideas that Matter
When you’re building a startup, your mind is full of ideas. One reason for the startup failure rate of 90% is choosing the wrong ideas for the wrong market.
Developing a VPC helps you narrow your focus only to ideas that matter. It eliminates wishful thinking and brings facts and figures to the page, acting as a great filter for useless ideas.
Feature Discovery
A VPC is useful for discovering a new product and for introducing new features. You can whip out a VPC template whenever you want to introduce something new to your existing product/service.
It establishes a streamlined product/feature discovery process that can be iterated whenever a need arises.
Frequently Asked Questions
Can I integrate a value proposition canvas with other business strategy techniques?
Yes, a VPC can seamlessly align with other useful business strategy techniques such as the SWOT analysis, customer journey maps, and lean canvases to give you a more nuanced look into market demands.
What are some mistakes to avoid when filling a value proposition canvas?
When filling out a value proposition canvas, avoid assumptions, generalizations, or being too focused on products instead of customers. The goal should be to populate it with verifiable and useful facts.
Summing it Up
Filling out a VPC requires diligent market research and critical analysis. It doesn’t operate on assumptions and experiments. Even when you have compiled a VPC, you must validate your conclusions with more market research.
As a new startup, this can quickly become a hectic and consuming endeavor. While your job is to come up with innovative ideas, another expert should tackle the product discovery problem.
And that is where VeryCreatives comes in. With extensive experience developing profitable MVPs, we are eager to hear your product/service ideas and help you determine whether the market needs them.
