It is now time to really start thinking about your value proposition – that is what benefits your customers will gain from your products and services. Review the training module on value propositions and design if you have no experience or knowledge of this
At this stage we are going to look at one particular customer segment (your beachhead market segment) and the value you are planning to create for them. Remember a few things here:
- The same product may offer different benefits to different segments (who have different needs).
- eg What a young couple on a date get out of going to the movies will be different to what a businessman taking a break from work in a foreign city
- We need to focus the value proposition around the specific customer needs, recalling that we have no control over customer needs, pains and gains – we only have control over our product and what it does.
- You will almost certainly have more than one segment who may buy your service, focus on the most probable segment at this stage (you may also do multiple canvases if you wish to explore others further)
- If you have a two-sided market (like eBay or Uber), you must do separate value proposition canvases for each.
Now complete the assignment where you will develop your own value proposition. You will find the work you did on the customer empathy map to be useful inputs, so have it at hand.
Note that we base the value proposition tool on the great work done by Alex Osterwalder and his team at Strategyzer AG (strategyzer.com). For those interested in getting more in-depth knowledge, we recommend the books: Business Model Generation and Value Proposition Design. We use our own adapted version of the value proposition canvas tool used in the book.