Value Proposition Canvas

With the Value Proposition Canvas (VPC) you work systematically on your value proposition.

Subject

Business and customer value

Definition

The performance or value proposition is the central element in an organization's / team's business model. The systematic elaboration of the performance promise is the basis for an organization's marketing, pricing and subsequent success in the market. And the Value Proposition Canvas is the ideal tool to systematically entertain a company with its own value proposition. The Value Proposition Canvas is divided into two areas. On the right side you are looking at a selected customer segment. On the left side you compare your value proposition and show in detail how your value proposition addresses the needs of your customers. On the right side, you are only looking at a selected customer segment. This means that it is best to develop your own value proposition canvas for each customer group or persona. You look at each target group from three perspectives: customer jobs, pains und gains. After you have described the needs and expectations of your customer group, you now start systematically on the left side of the Value Proposition Canvas to develop your value proposition against the problems, pain and gains of your customers. To do this, you also work out three questions: products and services, pain relievers, gain creators. If your value proposition correctly addresses the needs of your customers, then you have achieved a problem-solution fit.

Benefit

When working with a team, the VPC is above all a communication tool. It helps to develop a common understanding of an organization's value proposition within the team.

Procedure

One can use the Value Proposition Canvas alone, with a team or in a workshop. Download the Value Proposition Canvas. Print out the Canvas in A1 or A2. You need enough sticky notes and pens. Decide on the first customer segment that you want to work on. If you work in a team, you can also form groups and edit customer groups separately. Systematically work through the Value Proposition Canvas in the individual areas. You should reserve 10-15 minutes per area, depending on the size of the group. Also critically check which assumptions about jobs, pains and gains of the customer are based on experiences, observations or interviews. Validate the problem / solution fit.

Participants

Agile coach/agile master, stakeholders/managers, the entire team

Tools

Flipchart/whiteboard

See also

Value Proposition Canvas,Alexander Osterwalder 'Value Proposition Design: How to Create Products and Services Customers Want (Strategyzer)',Alexander Osterwalder 'Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers'