An introduction to the customer value proposition canvas.
Good businesses start by addressing a customer need. The Customer Value Proposition Canvas, developed by Strategyzer, is a tool used by entrepreneurs when trying to find a customer group. This tool is used by entrepreneurs and helps them capture a product/market “fit”.
What is the customer value canvas?
The Canvas contains six elements, and when completed, provides a snapshot of a company’s target customer. The first three areas of the canvas look at the jobs, pains, and gains that customers face. The latter half of the canvas looks at how a business can provide products and services to meet the needs of the customer group.
The Customer Value Canvas has six sections:
- Customer Jobs.
- Customer Pains.
- Customer Gains.
- Products & Services.
- Pain Relievers.
- Gain Creators.
Using the canvas.
When using the canvas, start from the sections on the right and then finish by completing the sections on the left. Take the heading of each segment of the canvas, and then begin taking notes on how your business fits into each segment. When the canvas is complete, you should have a clear image of your business model.
Part One: Customer Profile (Jobs, Pains and Gains).
In this section, we’ll analyse the needs of customers. A customer profile has three components, and you’ll need to identify the jobs your customers are trying to complete, and the pains/gains they face when completing the job through existing means.
A “Job” refers to the outcome a customer is trying to achieve. Let’s look at transport as an example. The job of a customer in this case is trying to get from one point to the next.
In achieving that job, a customer could use a train, plane, bus, taxi, subway, car, or tram. Each method has it’s own pains and gains, and customers make an informed decision on their transport method based on their needs.
After we’ve identified the job that a customer is trying to complete, we need to look at the pains they experience when using current solutions.
For example, a train could be expensive and unreliable, and a bus could be too uncomfortable for long journeys.
A gain is the benefits that a customer receives by using a solution. Typically, these include the speed, comfort, and ease by which they can achieve the job they are trying to achieve.
In our transport example, buses are cheaper, trains are more comfortable, and planes are the fastest mode of transport. These are the gains that a customer enjoys when using a particular solution.
Part Two: Matching the customers needs.
Now that we’ve identified the customer’s jobs, pains, and gains, we can look at meeting these needs though the products and services that your business offers. In this section, you should list how your product/service helps a customer complete their job, whilst simultaneously minimising pain and adding extra value to the customer’s experience.
4) Products and Services
In this section, list the products and features that your business offers. State how your services help a customer achieve their desired outcome (job).
5) Pain Relievers
After you’ve identified the pains facing customers, you can list the solutions that your product or service contains that relieves the pains facing customers.
6) Gain Creators
What can your product or service do to add value to a customer’s life, that your competitors cannot match? A good business creates a USP, or Unique Selling Point, which creates added value for customers that they cannot receive from competitive products and services.
Applying the canvas to your business.
The Customer Value Canvas is not a tool to be used once and then discarded. Instead, it is to be revised frequently to match the changing needs of your customers.
In teams, create bullet points on your customer’s needs, and how your business matches the needs of customers. When the canvas is complete you should have a clear picture of your target customer. This canvas can also be used in conjunction with the business model canvas.