Value Proposition Canvas – What It Is and How to Create Yours
Have you ever heard of the Value Proposition Canvas?
This tool is a visual representation of a company’s value proposition.
Want to better understand how it works, what the benefits are, and how to create yours?
Then check out the complete article we’ve prepared.
What is a Value Proposition?
What determines whether a consumer will choose a particular brand among so many in the market?
A value proposition is a promise to be delivered by a brand.
In a clear and concise way, it’s what your company has to offer through its products and services.
It’s also the main reason why the consumer should buy from you.
When they come across a solution, it’s this value proposition that stands out and reinforces that it’s the best option for them.
The value proposition must be clear, strong, and customer-focused.
This is how your business’s marketing will stand out from the competition—especially if your brand is new and not yet well-known.
What is the Value Proposition Canvas?
A Value Proposition Canvas is a tool that makes it easier to define and visualize this strategic part of the company.
It is a more detailed part of the Business Model Canvas.
The Value Proposition Canvas takes into account factors such as the customer profile and the solution profile.
Each point is defined according to the model below.
With the description ready, it becomes easier to define the focus of the value proposition to be developed.
This way, it is possible to align the customer’s needs and desires with the benefits offered by your brand.
And don’t worry—throughout this article, we’ll go into detail about each point of the Value Proposition Canvas so you can create yours.
What is the Business Model Canvas?
As mentioned, the Value Proposition Canvas is one of the parts of the Business Model Canvas.
This is a broader tool, using concepts from Design Thinking, created by Swiss consultant Alexander Osterwalder.
Through this highly visual approach, the business model strategy is divided into nine blocks:
- Key Partnerships
- Key Activities
- Key Resources
- Value Proposition (this is the point we are working on in this article)
- Customer Relationships
- Channels
- Customer Segments
- Cost Structure
- Revenue Streams
Why Define a Value Proposition Canvas?
It is from the value proposition presented that the consumer decides whether or not to close a purchase or deal.
If, when contacting any company material, website, or sales team, they do not clearly understand the benefits and differentiators of the product or service, the sale will be lost.
Therefore, defining your company’s value proposition and using it in your communication is essential to show the consumer what you have to offer.
And to arrive at this proposition in a more concrete, visual, and collaborative way, you can—and should—use the Value Proposition Canvas.
By using this tool, you save time and resources.
Other reasons to define a Value Proposition Canvas:
1. You Get to Know your Customer Better
With this tool, you can more clearly define who your audience is, better understand their pain points and needs, and truly understand their consumption habits.
This allows you to create better solutions, processes, experiences, and communications that deliver better results for both the customer and your business.
2. You Define Clearer Objectives
Having a clear understanding of the company’s objectives is essential for any new step or action.
Only by knowing the company’s direction is it possible to train teams, create campaigns, strategies, and tactics that are aligned with what truly matters.
3. You Better Direct Team Efforts
Clarity of objectives, audience, and what the company sells also directs the teams, who work aligned toward a single purpose.
Having a Value Proposition Canvas even makes team growth easier, as new employees can quickly and visually understand what they are there for.
4. You Strengthen your Brand and your Company
A brand that knows its audience, has clear objectives, and a qualified team reaps excellent results.
Use the Value Proposition Canvas to strengthen your brand by offering the customer the best experience they are looking for.
How to Create a Value Proposition Canvas?
Your brand’s value proposition should answer fundamental questions such as:
- What product or solution does your company offer?
- What is the final benefit obtained from the purchase or service?
- What type of consumer benefits from doing business with your company?
- What makes your offer unique and different from what your competitors offer?
To answer these questions visually, the Value Proposition Canvas is divided into sections that must be analyzed and filled in.
Customer Profile
The first three points relate to the Customer Profile.
Customer Jobs
The first point, “Customer Jobs,” describes what customers do—not just related to the product or service you offer, but also in other areas of life, such as hobbies, work, and family.
The description should be made considering actions or tasks they try to accomplish daily, such as getting a promotion at work or feeling financially secure.
Customer Pains
The value proposition is always focused on solving these needs, and if you don’t know your audience, you won’t know what they are looking for or how they make purchase decisions.
Don’t rely only on guesses or superficial impressions—conduct research with current customers or potential consumers to identify their pain points and obstacles that keep them from the solution.
Customer Gains
These are the benefits the customer can obtain and the results they expect.
These gains can be financial, time-saving, emotional, functional, or social.
Once you’ve listed them, prioritize them, as they should stand out in the Value Proposition Canvas.
Value Proposition
The next three points concern the Value Proposition itself.
Products and Services
List your brand’s products or services that may be attractive to the specific customer, including their differentiators and purchase/use frequency.
Pain Relievers
Here, focus on how these products or services solve the pains described in the customer profile.
Understand how they make the consumer feel better in all the aspects we covered: emotional, financial, social, functional, etc.
Gain Creators
How will your solution positively transform your customer’s routine or life?
This must be clear in your company’s value proposition.
If the benefit is not immediately evident, you probably won’t capture their attention—let alone make a sale.
Conclusion
Put into practice what you’ve learned in this article and create a visual tool with incredible potential.
Your Value Proposition Canvas will help your brand clearly communicate what it offers and why it is the best solution for your customer.
