How to achieve product compliance with the market with the help of a new canvas of value proposition

I really like the movement of lean startups and its fundamental principle that a market-relevant product is searched for by testing, studying and experimenting with the simplest prototypes of products that you can imagine (the so-called minimal viable products - MVP ). This helps companies avoid creating products that consumers do not need. However, the fundamental conceptual tool to accompany this process until recently was missing. There was no practical tool that would help businessmen to schematically depict, think through, discuss, test and change the value offered by the company in accordance with the needs of its customers. Therefore, together with Yves Pigne and Alan Smith, we came up with the Gangbane of the proposed value.

The outline of the proposed value is, as it were, an addition to the Canwe business model . It helps to design, test, and shape the value offered to consumers in a more structured and thoughtful way, just as Canva business models help in the process of developing a business model (I wrote in detail earlier how we came up with this new tool).

The outline of the business model with its 9 component blocks concentrates on the overall picture. The outline of the proposed value considers in detail two of these blocks — the proposed value and the customer segment, allowing you to describe and analyze in more detail the “correspondence” between them. Companies need to achieve both the right "fit" and the right business model if they don’t want to go bankrupt, which I wrote about earlier in a post about failures . These tools work best in combination. One does not replace the other.
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In this post I will talk about this conceptual tool. In my next post, I will explain how it can be used in testing in conjunction with the development methods of the client Steve Blank and the lean start-up Eric Rees . The outline of the proposed value will allow a better description of the hypotheses on the proposed values ​​and consumers, prepare for interviews with consumers, and will also become a guide to testing and change.

The outline of the proposed value

As noted earlier, the Canva of the proposed value consists of two Canva blocks of the business model: the proposed value and the corresponding segment of consumers to whom you refer. The purpose of the tool is to help you more specifically outline each of them with a simple but effective structure. This visualization helps to improve strategic communication and prepares both units for testing.

Achievement of compliance

Kanva’s proposed value goal is to help you develop great value propositions that meet the needs and challenges of your customers and allow them to solve their problems. This is what, in the context of start-ups, is called product-market matching or problem-solving. The outline of a proposed value helps to apply a more systematic approach to achieving this fit.

Consumer tasks

First, let's take a closer look at the consumer and outline his portrait. I want you to pay attention to three things. Start by describing what your target consumers are trying to do. These may be tasks that they are trying to accomplish, problems that they are trying to solve, or needs that they are trying to meet.



Ask yourself:

• What functions is your consumer trying to perform? (for example, perform a specific task, solve a specific problem, ...)
• What social tasks is your consumer trying to accomplish? (for example, trying to look good, trying to gain credibility or status, ...)
• What emotional tasks is your consumer trying to accomplish? (eg aesthetics, well-being, safety, ...)
• What basic needs is your customer trying to satisfy? (e.g. chat, sex, ...)

"Pain" of the consumer

Now describe the negative emotions, unwanted costs, situations and risks that arise or could arise before the consumer before, during or after the completion of the task.



Ask yourself:
• What does your consumer find too costly? (for example, something that requires a lot of time, costs too much money, requires significant effort ...)
• What makes your consumer feel bad? (for example, grief, irritation, things that cause headaches, ...)
• Than current decisions do not suit your consumers? (eg, lack of functionality, performance, poor performance, ...)
• What are the main difficulties and challenges facing your consumer? (for example, lack of understanding of how things work, difficulties with implementation, counteraction, ...)
• What negative social consequences does your consumer face or is afraid of facing? (e.g. loss of reputation, credibility, trust, status, ...)
• What risks does your consumer fear? (for example, financial, social, technical, that something can go completely wrong ...)
• What makes your consumer not sleep at night? (for example, big problems, worries, worries, ...)
• What are some common mistakes your consumer makes? (e.g. usage errors ...)
• What barriers keep your consumer from implementing solutions? (e.g. initial investment cost, learning curve, failure to accept, ...)

Rank each “pain” by its intensity from the consumer’s point of view. Is it very strong or very weak? For each “pain,” note how often it occurs.

Customer Benefits

Now take advantage of the benefits that your consumer expects, wants, or would be surprised to receive. This includes functional use, social benefits, positive emotions and savings.



Ask yourself:

• Saving something will make your consumer happy? (for example, time, money, effort, ...)
• What results does your consumer expect, and what can exceed his expectations? (for example, quality level, more quantity, less quantity, ...)
• What does your consumer like about current solutions? (eg specific features, performance, quality, ...)
• What would simplify the work or life of your consumer? (eg, smoother learning curve, more services, lower cost of ownership, ...)
• What positive social consequences does your consumer want? (for example, to look good, increase credibility, improve status, ...)
• What are consumers looking for? (for example, good design, warranties, specific functions or enhanced functionality, ...)
• What do consumers dream of? (e.g. great achievements, great relief, ...)
• How does your consumer measure success and failure? (e.g. performance, cost, ...)
• To increase the likelihood of implementing a solution? (e.g. reduced cost, investment, risk; improved quality, performance, design, ...)

Rank every advantage in terms of importance to the consumer. Is it necessary or insignificant? Indicate how often each advantage takes place.

Products and services

Now that you have sketched a portrait of your consumer, let's move on to the proposed value. Again, I want you to notice three things. First list all the products and services around which your proposed value is built.



Ask yourself which of the products and services you offer help your customers achieve functional, social or emotional tasks or meet basic needs.

Products and services may be tangible (for example, manufactured goods, personal customer service), digital / virtual (for example, downloads, online recommendations), intangible (for example, copyrights, quality assurance) or financial (for example, investment funds, financial services ).

Rank all products and services according to their value for your customer. Are they vital or insignificant for your consumer?

"Painkillers"

Now let's describe how your products and services create value. First describe how your products and services “ease the pains” of the consumer. How they eliminate or reduce negative emotions, unwanted expenses or situations, as well as the risks that your consumer bears or can bear before, during and after the completion of tasks.



Ask yourself about products and services ...

• Do they provide savings? (for example, in the form of time, money, effort, ...)
• Do they improve the emotional state of your consumers? (for example, remove grief, irritation, things that bring headache, ...)
• Do they fix the flaws in existing solutions? (for example, new features, improved performance, improved quality, ...)
• Do they remove the difficulties or problems that your consumer faces? (for example, they simplify something, help to do it, reduce opposition, ...)
• Do they eliminate the negative social consequences that your consumers face or are afraid of? (e.g. loss of reputation, credibility, trust, status, ...)
• Do they reduce the risks that your consumers fear? (for example, financial, social, technical, that something can go completely wrong ...)
• Do they help your consumers sleep better at night? (for example, they help to solve big problems, reduce fears, eliminate worries, ...)
• Do they limit or eliminate common errors that consumers make? (e.g. usage errors, ...)
• Do they eliminate the barriers that keep your customers from implementing solutions? (for example, reducing or eliminating initial investment, a smoother learning curve, less resistance to change, ...)

Rank each "pain" that your products and services relieve, according to intensity from the point of view of your consumer. Is she very strong or very insignificant? For each “pain,” note how often it occurs.

Sources of benefits

Finally, describe how your products and services create customer benefits. How they create additional benefits that your consumer expects, wants or would be surprised to get, including functional applications, social benefits, positive emotions and savings.



Ask yourself about products and services ...

• Do they provide savings that make your consumer happy? (for example, in the form of time, money, effort, ...)
• Do they provide results that the consumer expects, or that exceed his expectations? (for example, higher quality, more than something, less than something ...)
• Do they duplicate or exceed current solutions that satisfy your consumer? (for example, in relation to specific functions, performance, quality, ...)
• Do they simplify the work or the life of the consumer? (eg, smoother learning curve, convenience, accessibility, more services, lower cost of ownership, ...)
• Do they provide positive social consequences that the consumer wants to get? (for example, they allow it to look better, provide increased credibility, status, ...)
• Do they give something your consumer wants? (for example, good design, warranties, specific functions or enhanced functionality, ...)
• Do they embody any dreams of consumers? (for example, contribute to great achievements, provide great relief, ...)
• Do they give positive results that meet the criteria for success and failure of the consumer? (e.g. increased productivity, reduced costs, ...)
• Do they simplify the implementation process? (e.g. cost reduction, investment, risk; improvement in quality, performance, design, ...)

Rank each advantage that your products and services create, in order of importance to your customer. Is it significant or insignificant? Indicate how often each advantage takes place.

Competition for customers

Most of the proposed values ​​compete with each other for the same consumer segment. I like to think of it as an “open niche” that the company that fills in with the best match will fill. This visualization was the idea of ​​Alan Smith, one of my co-founders and developer of business model generation.



If you describe alternative proposed values, you can easily compare them by working with the same variables (for example, price, performance, risk, quality of service, etc.) on the so-called strategic outline .

Canva poster of the proposed value

You can use the outline of the proposed value in the same way as the outline of the business model: print a poster, attach it to the wall and use stickers to describe it.

Unlike Canva, the business model poster and Canva methodology of the proposed value are copyrighted. However, you are free to use it and earn money on it as an entrepreneur, consultant or manager if you are not associated with a software company (in this case, you need to get a license from us). When using, please refer to BusinessModelGeneration.com .

The following is a downloadable version of the Canva poster of the proposed value .

Testing and change

Using Canva's proposed value as a tool for thinking and design is just the beginning. To get the most out of it, you also need to use testing and changes. In my next post, I will explain how you can ideally combine the outline of the proposed value with the process of development of the consumer and a lean startup. I’ll tell you how much help she can provide when you “get out of the office and talk to your customers,” as Steve Blank would call it.

Along with the “proposed value”, there are alternative translations: the value proposition, the key value, the dignity of the offer. All of them are English translation of "Value Proposition"

The translation was made as part of the Tolstoy Summer Camp start-up summer school.