The Value Proposition Canvas is a tool that facilitates products or services. It increases customer values and needs because every business relies on the needs of the customer. A successful clutch design agency whose reviews are good can fulfill those needs. Most of the time, people think of it as a tool to create new products and use it to find a market that befits them. This perception is not 100% true. The Value Proposition Canvas template is also suitable for products that have run the market for a long time.
Dr. Alexander Osterwalder originally developed it as a plan to ensure that it is a fit between the product and the market. They designed it as an alternative to Osterwalder’s Business Model Canvas. They work on Business Model Canvas templates and notice people cannot find a match between the customer segments or value proposition for the brand.
It was then that he developed other tools on the sidelines of the Business Model Canvas. It came to be known as the Value Proposition Canvas template and was used for planning that exact match.
Components of a Value Proposition Canvas
UI design company use the Value Proposition Canvas when a business wants to launch a new product in the market or refine the offering made by the organization for its existing product or service. It built the Value Proposition Canvas example using the Customer Profile and the Value Proposition of the business.
User interface design agency uses this part of the Value Proposition Canvas examples to explain the customer needs. All benefits customers need from the said product or service. It makes the customer happy and enhances the chances of adopting a value proposition as the Gains in a customer profile.
The second part is the pains that list out all the negativity customers come to when dealing with the related product or service. The third part is the customer jobs. Customer Jobs are the tasks the customer is trying to perform, including social, emotional, and functional.
We term the goals that the customer wants to get or satisfy customer jobs in a Value Proposition Canvas. The jobs need to relate to the field of work of the business to be effective in the long run. A customer job is anything specific to a broader concept that the customer has in mind.
- What does the customer need to do to achieve his goal?
- What are the tasks that the customer is trying to do to fulfill his desires?
This is the negativity that every customer has in mind whenever they go to buy a new product or a service. We collectively termed the thoughts that prevail in their mind or act as a hindrance to buy that product as pains. An example of pains:
- Will it be costly to buy the product?
- Will the product last as long as it says?
- What if the product fails before its specified tenure?
- What are the annoyances of the customers towards a product or a service?
The benefits that a customer expects from the product or service the business is promoting or launching fall into the customer gains category. There can be gains that the customers will expect to have while there will also be those that the customer never expects. It just comes along with the product or service because of some offering or discounts. Examples of gains could be:
- Savings that make the customer happy
- Level of quality
- Positive social consequence the customers may desire from the product or service
- The way the customers measure success
- What do they desire? Low price, less investment, lower level of peril, or improved value?
It is the second part of the VPC and deals with products and services offered by the business. The gains in the VPC highlight the product or service maps of the customers’ gains by providing benefits to the customer. On the other hand, pains are those factors that cause the customer to think of not purchasing the product or service. The section Pain Relievers deals with such pains and how to get rid of them. The third section of products or services lists out all products which target business and customers. These products or services can cause gains or pains to the customer.
Products & Services
It is one of the simplest parts to deal with them. UX design firm lists out its products and services that it needs to launch and promote under this section. There is a need for products that work together to bring value to some specific product or service are also listed here. The particular business also adds the different versions of a product or a service.
- Manufactured Products
- After-Sale Service
- Music Downloads
While adding products and services here, it is significant to note that not all products and services are important to the business. It is there to just mention others from the essence of the value proposition.
When you add products and services to the value proposition canvas examples, then it forces you to have some gains and some pains (later about that). The gain creators are products & services. It has features that make the life of a customer easier. Examples of Gain Creators are:
- Produce results that the customers expect
- Create savings such as discounts that will benefit the customer
- A new product or service provides an easy learning curve to the customer.
- Make life easier for the customer by adding additional features, providing a better product at a lower cost, or making it quickly available.
When Gain Creators are a necessary section of the Value Proposition Canvas template are the Pain Relievers. Pain Relievers tells us about those steps that need to reduce the complications the customer is facing. Pain relievers assuage pain, mitigate risks, jettison exasperations that hinder a customer from achieving his goals.
Some of the pain relievers are:
- Fiscal savings
- Help the customer feel at ease
- Try removing the difficulties a customer faces
- Eliminate risks from the customers’ mind
- Eradicate mistakes that a customer makes during the purchase
- Allow the customer to interact with you through a medium such as feedback
Ensuring a Complete Fit
Now that you know about the components of a VPC and what they mean. It is time we moved on to finding a solution that best fits your plans to launch the new product or service or even promote an existing one with the customers in the market. It becomes the last step in a Value Proposition Canvas template.
According to the value proposition canvas definition, a business aims to achieve a 100% fit between the value proposition and the customers’ needs. It is a misunderstanding because the execution of 100% is not possible. When any corporation says that, then the company is not only lying to the customer, but it is itself as well. This condition is only possible when the business is providing inaccurate data to the Value Proposition Canvas.
They consider customer’s jobs, pains, and gains that fit & achieved lie somewhere between 50-70%. If you want to manage this ratio, there is a need to study the customer needs properly. There is also a need to understand the areas that require your attention. Ensure that the customer is never in doubt about your capabilities to deliver according to the niche of customers. It is trying to achieve this fit to see that there are no such Gain Creators that cause customer pains. Some Pain Relievers also cause Customer Gains which is not a matter of worry. There is a need to give your focus on factors during the building of the VPC. All factors equally focus on the best user experiences.
We can try to tell in detail with the Value Proposition Canvas example.
Let us consider an example.
The primary purpose of a Value Proposition Canvas is to help the business. It judges whether the products, services, and features provided to customers convince them or not. If the Customer Profile matches the Value Proposition, the business gets a FIT solution. In case it does not match, the outcome of the VPC will be an UNFIT solution.
In the example below, a customer is searching for a vehicle that takes too long distances. Now the car has some charging opportunities and advanced features that provide a warranty for the battery. The company has two options for its brand name. The first turns out to be UNFIT and the second one is a FIT solution. Let us check out why.
A customer requires traveling long distances very often and remains different from others. The vehicle he uses does not have enough charging and luggage space as well. He wants a car with a durable battery, a known brand, and has good interior ergonomics.
Value Proposition 1
- Products & Services–at Premier
- Pain Relievers–Best-Selling Car, Tax Savings, Limited battery Warranty
- Gain Creators–Advanced Features, Many Awards
- Result: – Unfit
Value Proposition 2
- Products & Services–Audi e-Tron GT
- Pain Relievers–Multiple Charging Points, Developed interior ergonomics
- Gain Creators–Battery Warrantied for 10 years, Most Reputed Car, Self-Driving option also available
- Result: – Fit
The components of Value Proposition Canvas are exclusive but also correlated. We know that a customer profile is about keeping the customer’s needs and wants. The Value Map includes those essential conclusions to enhance product quality. It is necessary to turn the ultimate product into the demand of the user. It is within the capabilities of the business. If you want to accomplish this, there is a need to discuss customer specifications.
Advantage of Value Proposition Canvas
Value Proposition Canvas is crucial for any business model. It encourages the business in the decision-making and arranging of products. It is a graphical illustration of customer needs. Companies regulate their policies according to client needs and help to create a product that customers prefer.
Let us check the significant advantages of the Value Proposition Canvas.
Concentrate On Planning
The new concepts circulating every minute. It is imperative to not lose center on the core values. Many companies formed products that do not fulfill customer promises. This is not the result you wish to accomplish and Value Proposition Canvas serves as a visual guide. It provides a planned way to establish a high-demand product.
Forms Marketing Outreach
The launch of a new product contains a lot of power in marketing and branding. It includes notifying the clients how buying the product complies with their needs. It advocates setting up a powerful brand image in the minds of customers. The user perceives the brand as the quality and service provider, so the Value Proposition Canvas template is a useful tool here. It recognizes customer needs and produces an action plan for them. It ensures promotion and advertisement that attracts customer attention quickly.
Powerful Customer Involvement
The customer introduction explains engaging customers with your brand and product. We use this method for user satisfaction, which is the critical factor in product development. The Value Proposition Canvas examples link the recognition and realization of needs. The advantage of this framework is that it allows you to concentrate on factors that users value the most. It builds high customer engagement.
Effective & Simple
The customer value canvas gives an uncomplicated analysis of the system of the business. It helps to figure out the product design and practice becomes comprehensive. Using the value Proposition Canvas template makes them simple.
A Value Proposition Canvas is an alternative to the Business Model Canvas of Dr. Osterwalder. While working on the Business Model Canvas, he noted some discrepancies which he wanted to remove. He developed the VPC with two parts. The one describes the pains & gains of a customer, and another specifies how to create gains and remove pains that come with the product or the service.
Let Us Wrap It Up
UIUX Studio is a leading UI UX design agency that also provides services to multiple clients worldwide. Our designer team is an expert in using the best techniques, like Value Proposition Canvas Template. It helps us analyze all details that help in various ways. The VPC is not meant for only new products or services but is also used for existing products and services. It gives new heights to business.
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