This lesson focusses on my discussion of the Value Proposition Canvas (VPC) also developed by Strategyzer, and provides specific discussion on how it relates to ONLINE BUSINESSES. Please note that the VPC source information is rigorously protected by Copyright and has been used by us only after by obtaining specific consent from Strategyzer.
The Value Proposition Canvas allows you to further deeply investigate the elements WITHIN two of main building blocks of the Business Model Canvas, and work out how you can create a much better FIT between these elements, which are:
1. Customer Segments
The target audience for your products and services. You could serve one or several Customer Segments.
2. Value Propositions
How you seek to solve customer problems and satisfy customer needs with unique value propositions.
Remember, digging deep into the VPC allows you to work out how these building blocks might better FIT TOGETHER in the business model you develop, to help you develop great Value Propositions that match your Customer’s needs and jobs-to-be-done and helps them solve their problems 🙂
You Know What Happens When You Make an Assumption…
Now it is very important to realise that at this point in time, the answers to all of these great questions are simply just your assumptions! You have described who you “think” your ideal customers are and what you think would create value for them. While it might be your best guess, it is still just your opinion.
So now you need to get out and talk to as many customers as possible to test and verify your assumptions! The jobs you listed – are these the jobs they are really trying to do? Are these jobs important to them? Are the pains you imagined actually real according to your customer? Are they severe pains, or just minor annoyances? Do your customers really value the gains you believe they get?
You can then adjust the assumptions you made based on these insights, and redesign your Value Proposition based on this. Certainly, make sure you REMOVE all the pains and gains etc that you had that were WRONG so you can determine which are the most important “real” ones.
It’s not very likely that your Value Proposition can address all the pains and gains of your ideal customer. Nor should you try to do that! Your objective is to address mainly the most important ones, and address them really well!
By now you have gathered a lot more information about your desired business model. What do you do with it all?
We’ll look more at that in the next lesson 🙂
NEXT UP » Putting it all Together
Please note that the Value Proposition Canvas source information is rigorously protected by Copyright! It has been used here only after by obtaining specific consent from Strategyzer, in particular, this specific post was a major reference for this lesson.
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