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Keywords: Diagramming, Business Diagrams, Value Proposition Canvas

Value Proposition Canvas

The Value Proposition Canvas was developed in complement to the Business Model Canvas by Alexander Osterwalder to ensure that there is a fit between a business' product or service and the target market. The Value Proposition Canvas is a detailed look of two parts or "building blocks"  of Osterwalder's Business Model Canvas - the Customer Segment and Value Propositions.  The Value Proposition is used when there is a need to refine an existing product and/or service, and where a new offering is being developed. The focus is on understanding customer's problems and producing relevant products or services to solve them. 

Generic sample of the Value Proposition Canvas source: for Confluence

The Value Proposition Canvas is a fixed diagram known for its leftward square and its rightward circle. These two shapes represent the value proposition (value map) and the customer (customer profile or customer canvas) both of which are part of the "building blocks" of the Business Model Canvas. 

Elements of the Value Proposition Canvas

Customer Profile 

  • Gains - the benefits that the customer expects to receive that may increase likelihood of adopting a value proposition.  
  • Pains - the negative experiences, emotions, or risks that the customer experiences in the process of the jobs getting done.
  • Jobs to be done - the social, emotional, and functional jobs that the customers are trying to perform, problems that are trying to be solved or needs they wish to satisfy 
    • Social - driven by social duty, fear, optimism, or aspiration the things that people feel they have to do as part of their role in relationships and society (ex. buying a car for social status)
    • Emotional - driven by preferences, likes and dislikes, and insecurities (ex. feeling when driving the car)
    • Functional - practical jobs (ex. driving to point A to point B). 

Value Map

  • Gains Creators - how the product or service creates customer gains and how it offers added value to the customer.
  • Pain Relievers - how the product or service alleviates customer pains.
  • Product and Services - the product and services which create gains and relieve pain, which undermine the creation of value for the customer. 

How to Conduct a Value Proposition Canvas

1. Choose a customer segment 

2. Identify the 'Jobs to be Done' and prioritize them 

3. Identify the pains and prioritize them 

4. Identify the gains and prioritize them 

5. Choose 3-5 pains and gains and relate them to the jobs

6. List all of the benefits of your product or servie

7. List all the pain relievers 

8. List of gain creators 

9. Choose 3-5 creators and pain relievers that impact the customer the most. 

10. Link the pain relievers, gain creators and product benefits to the pains, gains, and jobs to be done.  

How to Create a Value Proposition Canvas

There are several ways to make a value proposition canvas. Today, the value proposition canvas can be created using diagramming tools such as app, a software tool sponsored by Seibert Media. Learn how to create a value proposition canvas using and find more information through the blog or youtube channel for helpful tips and tricks. 

Resourceful Videos

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This content was last updated on 04/21/2021.

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