The Value Proposition Canvas is a framework or business model used to analyze whether a product or service meets market demand. The creation of a Value Proposition Canvas is also useful for meeting what is truly needed and desired by our market consumers. Thus, the hope is that the services provided genuinely fulfill the customers’ needs. The Value Proposition Canvas was originally developed by Alexander Osterwalder and has been widely used for business planning.
When to Use the Value Proposition Canvas
The Value Proposition Canvas is typically used when making product offers in business, as it helps identify consumer needs and determine the benefits or value that a service or product provides. The Value Proposition and Customer Profile are considered interrelated elements. Thus, its existence can enhance the process of offering products or services.
Why We Should Use the Value Proposition Canvas
Here are several reasons why we should use the Value Proposition Canvas.
- Must Understand Customer Needs Thoroughly
- Enhancing Alignment Between Products Sold and Target Market
- Knowing the Uniqueness, Advantages, or Distinctive Features of Our Business Compared to Competitors
- Optimizing the Use of Costs and Human Resources
- Effective Communication Tools Both Internally and Externally
How to Create a Value Proposition Canvas
Here are some steps and elements to consider when creating a Value Proposition Canvas, namely:
Customer Profile
Gains
Gains are the expected benefits or desires of consumers when they use a product or service. For example, customers may seek time efficiency, improved work quality, or emotional satisfaction. Gains can include desired benefits, such as ease of use of the product, responsive customer service, or better results from the product used.
Pains
Pains are negative experiences or risks that customers have encountered in the process of completing tasks or fulfilling needs. This can include issues faced by customers, such as difficulties in using a product, inadequate services, or dissatisfaction with the results obtained. Pains also encompass potential risks that customers fear, such as additional costs, wasted time, or frustration due to product failures.
Customer Jobs
Customer Jobs refer to the functional, social, and emotional tasks performed by customers. This includes the problems they are trying to solve and the needs they wish to fulfill. Customer Jobs can involve tasks that need to be completed, the need for social recognition, or the pursuit of emotional satisfaction. For example, a customer may want to complete a task more quickly (functional job), enhance their social status by owning a particular product (social job), or feel happy and satisfied with the results they achieve. (emotional job).
Value Proposition
Product & Services
The products and services offered must be able to assist customers in completing their functional, social, and emotional tasks. These products or services should be designed in such a way as to meet customer needs, whether in the form of goods, services, or solutions that can facilitate work, enhance quality of life, or provide emotional satisfaction.
Gain Creators
Gain Creators are aspects of a product or service that can provide additional benefits or advantages to customers. This can include unique features that make the product easier to use, more affordable pricing, or better quality of service. Gain Creators should be able to address or meet the expectations of Gains in the Customer Profile, such as improving efficiency, delivering better results, or enhancing customer satisfaction.
Pain Relievers
Pain Relievers are ways in which products or services can reduce or eliminate negative experiences or risks previously encountered by customers. This can include solutions to common problems faced by customers, quality guarantees for products, or responsive customer support. Pain Relievers must be able to address the Pains present in the Customer Profile, such as eliminating difficulties in using the product, reducing the risk of failure, or providing a sense of security to customers.
How to create a Value Proposition Canvas
To create a plan that focuses on the core values of customers and the value of a product, it is important for you to understand how to create a good and proper Value Proposition Canvas. Here are the steps:
Make sure the Value Proposition Canvas that has been created includes the answers to the following questions.
Customer Profile
Customer Jobs
What tasks can customers accomplish with your product?
Customer Gain
What benefits do customers gain from using your product?
Customer Pain
What problems do customers eliminate when using your product?
Proposition Value
Product and Services
What products, services, and features do you have?
Customer Gain
What are the things that can enhance user experience?
Customer Pain
What are the solutions or elements that can eliminate or address customer issues?
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Example of a Value Proposition Canvas.
The Value Proposition Canvas is a very effective tool for understanding the needs, desires, and challenges of customers, as well as how our products or services can provide solutions for them. Below is an example of the Value Proposition Canvas for Distribution Management Application
Template Value Proposition Canvas
The Value Proposition Canvas is a very important tool in designing business strategies that focus on customer needs. By using this template, you can more easily identify pain points, gains, and how your product or service can offer the right solutions, thereby creating a strong and relevant value proposition.
Download Value Proposition Canvas Template in Word or Value Proposition Canvas in PDF
Conclusion
The Value Proposition Canvas is an important framework for assessing whether a product or service meets market demand and consumer needs. This framework helps to deeply understand the needs, desires, and challenges of customers, as well as how the product can provide solutions. The Value Proposition Canvas is used when offering products in business, ensuring alignment between the products being sold and the target market. By analyzing pain points, gains, and other key elements, businesses can create a strong value proposition, improve resource efficiency, and communicate effectively both internally and externally.
Reference
Varga, D. (2020, October 8). How to use Value Proposition Canvas: The definitive guide. Digital Natives. https://digitalnatives.hu/blog/value-proposition-canvas/
B2B International. (n.d.). What is the Value Proposition Canvas? B2B International. Diakses pada 27 Agustus 2024, dari https://b2binternational.com/research/methods/faq/what-is-the-value-proposition-canvas/
Author : Meilina Eka A
