HUMAN CENTERED DESIGN | DEFINE

Value Proposition Canvas

90-120 Min

Value Proposition Canvas is a tool which helps ensure that a product or service is designed for what customers value and need. The Canvas in a sense helps develop the product-market fit. It is a complementary tool to the Business Model Canvas, and looks at two parts of that tool specifically — customer segments and value proposition.

USE CASES

Define a new product or service offering being developed from scratch, through the lens of customer needs.
Refine an existing product or service offering through the lens of what customers need and value.

LIMITATIONS

Each customer profile/segment may need a unique value proposition. An overall proposition which is a combination of all the different versions may not be easy to define. Designers have to prioritise at some point.

UNDERSTANDING THE TOOL

‘Customer Profile Map’: This part focuses on the customers’ key characteristics and needs. A customer profile should be created for each customer segment/persona, as they may have distinct gains, pains and jobs and value propositions can be different for each. There are three sections within the customer profile map; 1) Customer jobs are the functional, social and emotional tasks (for example, for a small retailer these could be — accessing funds for investment, growing the business by increasing revenue and volume, expanding product portfolio etc.) that customers are trying to (or could) accomplish through the use of a product or service. 2) Gains are the benefits (for example, easy access to funds, low rates, low collateral etc.) that customers expect while going about the jobs. 3) Pains are the negative experiences, emotions and risks (for example, tedious documentation, multiple follow ups, bribes, etc.) that customers want to avoid while getting the jobs done.
‘Value Map’: This part focuses on how one can design products and services to meet customer needs. Each part of this map relates back to the Customer Profile Map. There are three sections within the Value Map - 1) Products & Services - the solutions, in terms of features and systems (for example, business loans for retailers) that help customers complete the customer jobs. 2) Pain Relievers - things that can be included in the product or service to aid customers and reduce their pains (for example, pre approved amounts, minimal documentation, on site verification). 3) Gain Creators - things in the product or service that can help maximise customer outcomes and benefits (for example, business advice for retailers, custom payment terms, repayment bonuses).
‘Value Proposition’: To be used to summarise the emerging value proposition (for example, easy to access and rewarding financial services for small retailers).

STEP BY STEP

Familiarise yourself: Read through the template and discuss the maps (customer and value) and their sections.
Build the Customer Profile Map: Choose the customer persona or segment to build the customer profile map for. Start with the customer jobs and then move to pains and gains.
Build the Value Map: Begin by detailing the product and service features that reflect the customer jobs. Next, move to gain creators and pain relievers.
Define Value Proposition: Summarise the overall value proposition. Do this for each customer profile, and summarise across profiles.
Review & Discuss: Review findings and discuss takeaways as a group.

HOW TO FOR FACILITATORS

At the start: Make sure participants understand the goal of the activity, and the direction. Refer to facilitation questions if they are feeling stuck.
During the exercise: Start with a discussion on how well teams understand their value propositions, and if they have considered unique propositions for each customer profile. Ask teams to refer to their customer personas, and business model canvases (if already developed) as they go about filling the canvas.
At the close: Have participants walk you through the filled out worksheet. Probe them on their final value propositions.

FACILITATORS QUESTION BANK

Are you looking to define a new value proposition or improve on what exists currently?
How well do you understand your customers? Has your research covered enough ground to be able to map your customers?
How many different segments and profiles of users do you have? Do you wish to develop customer maps for each or do you want to focus on one?
Are you clear on what the customer jobs are? How are these reflected in terms of product and service features?
What is painful for your customers as they interact with your solution or existing solutions? How can you remove this pain?
What creates gain and benefit for your customers? How can you maximise this gain?
If your propositions for different customer groups are differing, how then will you prioritise?
As you build customer and value maps for each customer segment/persona, what is the overall value proposition that seems to be evolving?
How compelling is your overall value proposition for customers? How does the team feel about it?

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