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Value Proposition Canvas 101

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the "Value Proposition Canvas" tool that helps startups and organizations design compelling products and services that customers will buy. It's must have tool if you want to save time and effort in designing your product or service. The best thing is it's visual, practical and is easy to learn. This world class tool was introduced in Alex Osterwalder's top seller book "Value Proposition Design" and is a continuation of the "Business Model Canvas". This excellent visual tool is easy and practical.

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Value Proposition Canvas 101

  1. 1. EMAD SAIF Educator & Entrepreneur @esaif VALUE PROPOSITION CANVAS 101
  2. 2. Value Proposition Canvas Special thanks to strategyzer.com for their inspiring work!
  3. 3. CUSTOMERPRODUCT / SERVICE VALUE PROPOSITION Describes the benefits customers can expect from your products & services VALUE PROPOSITION
  4. 4. CUSTOMERPRODUCT / SERVICE NOT EASY
  5. 5. #1 STARTUP MISTAKE Building Something Nobody Wants
  6. 6. Uncommon language Wasted time & resources Unproductive meetings Product Failure BIGCHALLENGE EnterpriseStartup
  7. 7. Need better approach for creating value for customers & lowering risk of failure!
  8. 8. VALUE PROPOSITION CANVAS
  9. 9. Value Design Process Extract Hypothesis Prioritize Hypothesis Design Tests Prioritize Tests Run Tests Capture Learnings Make Progress our focus
  10. 10. Value Proposition Canvas (VPC)
  11. 11. 9building blocks Business Model Canvas
  12. 12. Business Model Canvas
  13. 13. The set of value proposition benefits that you design to attract customers The set of customer characteristics that you assume, observe and verify in the market FIT? Value Map Customer Profile
  14. 14. Customer ProfileValue Map jobs pains gains gain creators pain relievers products & services Value Proposition Canvas (VPC)
  15. 15. Customer ProfileValue Map PRODUCT INSPIRED INNOVATION
  16. 16. Customer ProfileValue Map CUSTOMER INSPIRED INNOVATION
  17. 17. Customer Profile Overview 1 Download the Customer Profile Canvas 2 Grab a Set of Small Sticky Notes 3 Map Out Your Customer Profile Visualize what matters to your customers in a sharable format 1 page actionable customer profile OBJECTIVE: OUTCOME:
  18. 18. Choosing a Customer Segment
  19. 19. Definition: Customer Segment The groups of people or organizations who share similar characteristics that you aim to reach and create value for them
  20. 20. MARKET SEGMENTATION DEMOGRAPHICS GEOGRAPHICS PSYCHPGRAPHICSBEHAVIORAL Age Gender Income Marital Status Ethnic Background Activities Personality & Values Attitudes Benefits Usage Rates Local Patterns National International Regional
  21. 21. Taxi Passengers in Amman, Jordan 1. Customer Segment Taxi Passengers in Amman, Jordan
  22. 22. 2. Customer Jobs Find Taxi Give directions Pay Call Taxi What customers are trying to get done?
  23. 23. 3. Customer Pains Find Taxi Give directions Pay Wait a long time Compete with other customers Overcharged by Taxi Unsafe driver Call Taxi What annoys the customer before, during & after getting job done
  24. 24. 4. Customer Gains Find Taxi Give directions Pay Wait a long time Compete with other customers Overcharged by Taxi Unsafe driver Easy payment Fair price Arrive on time professional Call Taxi What outcomes & benefits customers want?
  25. 25. 5. Ranking Find Taxi Give directions Pay Wait a long time Compete with other customers Overcharged by Taxi Unsafe driver Easy payment Fair price Arrive on time professional Call Taxi What is the customer priority?
  26. 26. Find Taxi Give directions Pay Wait a long time Compete with other customers Overcharged by Taxi Unsafe driver Easy payment Fair price Arrive on time professional Call Taxi 5. Ranking What is the customer priority? Ranked Ranked Ranked
  27. 27. Customer Profile Summary 1 Select customer segment 2 Identify customer Jobs 3 Identify customer pains 4 Identify customer gains 5 Prioritize jobs, pains & gains Visualize what matters to your customers in a sharable format 1 page actionable customer profile OBJECTIVE: OUTCOME:
  28. 28. Value Map Overview 2 Download the Value Map Canvas 3 Grab a Set of Small Sticky Notes 4 Map out how you create value for your customers Describe explicitly how your products and services create value 1 page map of value creation OBJECTIVE: OUTCOME: 1 Grab the Customer Profile you previously completed
  29. 29. 1. Products & Services Taxi Smartphone App What you offer customers Find Taxi Give directions Pay Wait a long time Compete with other customers Overcharged by Taxi Unsafe driver Easy payment Fair price Arrive on time professional Call Taxi
  30. 30. 2. Pain Relievers Taxi Smartphone App No Cash Assigned driver Cost System How exactly your products and services alleviate specific customer pains Instant booking Find Taxi Give directions Pay Wait a long time Compete with other customers Overcharged by Taxi Unsafe driver Easy payment Fair price Arrive on time professional Call Taxi
  31. 31. 3. Gain Creators Taxi Smartphone App No Cash Assigned driver Cost System Save Time Professional drivers Visual Map Rating System How your products and services create customer gains Instant booking Find Taxi Give directions Pay Wait a long time Compete with other customers Overcharged by Taxi Unsafe driver Easy payment Fair price Arrive on time professional Call Taxi
  32. 32. Taxi Smartphone App No Cash Assigned driver Cost System Save Time Professional drivers Visual Map Rating System Instant booking Products & Services Rank products & services from nice to have to essential Pain Relievers Rank pains from nice to have to essential Gain Creators Rank gains from nice to have to essential
  33. 33. Taxi Smartphone App No Cash Assigned driver Cost System Save Time Professional drivers Visual Map Rating System Instant booking Products & Services Rank products & services from nice to have to essential Pain Relievers Rank pains from nice to have to essential Gain Creators Rank gains from nice to have to essential RANKED
  34. 34. Taxi Smartphone App No Cash Assigned driver Cost System Save Time Professional drivers Visual Map Rating System Find Taxi Give directions Pay Wait a long time Compete with other customers Overcharged by Taxi Unsafe driver Easy payment Fair price Arrive on time professional Call Taxi Instant booking Ranked VPC
  35. 35. Value Map Summary 1 List products and services 2 Outline pain relievers 3 Outline gain creators 4 Rank by order of importance Describe explicitly how your products and services create value 1 page map of value creation OBJECTIVE: OUTCOME:
  36. 36. Fit Overview Verify if you are addressing what matters to customers Connection between your products and services and customer jobs, pains, and gains OBJECTIVE: OUTCOME: 1 Bring in the Value Proposition Map and Customer Segment Profile you completed earlier. 2 Go through Pain Relievers and Gain Creators one by one, and check to see whether they fit a customer job, pain, or gain. 3 Put a check mark on each one that does.
  37. 37. Taxi Smartphone App No Cash Assigned driver Cost System Save Time Professional drivers Visual Map Rating System Find Taxi Give directions Pay Wait a long time Compete with other customers Overcharged by Taxi Unsafe driver Easy payment Fair price Arrive on time professional Call Taxi Instant booking Taxi Smartphone Application
  38. 38. Test Your Customer Assumptions Best Fit wrong assumptions! Customer
  39. 39. Adjust & Redesign
  40. 40. Best Fit 1 2 n
  41. 41. Strategyzer.com/vpd Taxi Smartphone App Taxi passengers book a taxi minimizing waiting time for a taxi enjoying affordable prices Typical taxi services by phone ad-lib VALUE PROPOSITION TEMPLATE
  42. 42. SUMMARY The Value Proposition Canvas (VPC) helps clarify the customer needs & how to create value for them Extract value propositions using ad-libs Take insights and update VPC Validate by talking to customers 1. 3. 2. 4.
  43. 43. BOOKS ONLINE COURSES www.strategyzer.com slide50 Click link & enter code
  44. 44. Thank You emadsaif.comEmad Saif Educator & Entrepreneur @esaif

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