In this video I give a brief introduction to Value Proposition Canvas. The reason why customers or users choose to use one’s performance should be guiding for their entire business model. Many companies are now aware that it is important to be close to the customers and to understand them. Not the least when to innovate. But also when using marketing, adjusting its services, communicating and shaping the strategy.

What is Value Proposition Canvas?

Most companies are used to working with hard quantitative data. But for many, there is an unprecedented potential in working with qualitative data and understanding the customer’s motivation to buy. It is easy not to always be quantifiable and not rational. And with data, there is also the need to create some structure and meaning so that you can draw some valuable conclusions and create strong results.

Value Proposition Canvas is a very simple model to organize knowledge or assumptions about why one’s customers buy. Many companies make the mistake of expecting their customers to buy from a logical and rational basis. However, the truth is another, namely that most customers buy from an emotional basis.

We can merge the reason for buying a product into a term; value proposition. It’s hard to translate into Danish. But the meaning is, the reason to buy or motivate. Value proposition was developed by the same authors (Osterwalder and Pigneur), who made the Business Model Canvas. They made the model because many found it difficult to fill the Value Propositon field in the Business Model Canvas.

After having done workshops with companies, we often begin with finding the value proposition. Because it is directional for the rest of the business model. If the company is aware of its value proposition before the workshop, we will fill it out first and finish the field. Before that, we can really help develop different models. If, on the other hand, the company doubt its value proposition – and there are many who feels like that, you can not develop really sharp business models before it’s in place.

Why are we buying? 

We choose to buy from a company because we feel they will give us the best product or the best service for our needs. It is therefore important that you focus not only on the obviously reasonable reasons for purchasing products or services. You must also understand the social and emotional motivations that become a given product from the customer’s point of view.

How do we create value for the customers? 

If you do not, as a company, know what value your products and services add for your customers, then you can figure it out by using Value Proposition Canvas. It is divided into two parts, one that views it from the customer’s perspective and one that views it from a product perspective.

The tool is incredibly easy to use, and it can be made several times if you have more products in your company.

In short, a canvas consists of three parts:

  • Pain: What frustrates, or annoys your customers? For example, telecom operators are potential pains: waiting time for customer service, high price and the like.
  • Gain: What type of benefits can customers gain? For example, by wearing these boots you can feel beautiful and confident.
  • Jobs: What do customers really want to do? Here we distinguish between jobs that are functional and emotional. So when you give the children the life jacket it is both because it will keep them up if they fall into the water, but also to make the mother and father feel safe.

You are always welcome to contact me at +4526361199 or to hear more.

I give lectures, coaches, counsels and teaches. My vision is that organizations create long-term value, that all leaders have a clear mind – and you wake up with energy every morning.

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