Why does your product or service matter to your customer? What aspects of it are the most (and least) important? What exactly is the value that you provide? Alex Osterwalder can help you figure it out.
An expert on innovation and entrepreneurship, Osterwalder is the founder of Strategyzer and author of “Business Model Generation” (Wiley, 2010), which has sold more than a million copies worldwide. He has devised the Value Proposition Canvas, an easily navigated method to determine your value proposition in terms of your customers’ “Jobs, Pains and Gains.” In this video, Osterwalder walks his audience through the process.
The first, and most important, step is a comprehensive map of your customer. This map is a living document, changing based on ongoing research. Your three map areas will look like this:
- Your customers’ “jobs to be done:” What is the essential need being filled by your product or service?
- Your customers’ pains: “The things that are preventing the customer from doing the job well?” Essentially, what’s broken in the solution?
- Your customers’ gains: “The outcomes they want to achieve, and the things that they expect. If the job is done well, what do they get?”
Once you’ve established your customer map, organize each category by priority. Then, you can explicitly connect your products and services to the customer map. Where are you cancelling pains? Where are you fulfilling jobs and gains? How much value does your product or service really provide your customer?