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What is the Value Proposition Canvas?

By Samantha Garner | October 27, 2018

value proposition canvas

Value proposition is simply a statement we use in business to summarize an expectation of value – why a consumer (or business if your customers are other businesses) should buy your product or service. It’s a promise of value to be delivered. A value proposition is a promise by a company to a customer or segment of the market. It’s an easy-to-understand reason why a customer should purchase a product or service from you. A value proposition should be a clear statement that explains how a product solves a pain point, communicates the specifics of its added benefit and states the reason why it’s better than similar products on the market. The ideal value proposition is concise and appeals to a customer’s strongest decision-making drivers.

About the Value Proposition Canvas

Strategyzer.com and Swiss business management theorist Alexander Osterwalder developed the Value Proposition Canvas to help business owners create the perfect value proposition. The Value Proposition Canvas (VPC) is intended to guide development of products and services customers are really looking for. The VPC is about creating a fit (or value) between what you’re selling and what customers are wanting.

The Value Proposition Canvas helps us to systematically understand what customers want and to create products and services that perfectly match their needs. It collects customer information about their needs and requirements which allows a more effective design of your products and services, and ultimately your business model. Eventually, this should lead to sales and profitability and much less time wasted on developing ideas that customers may not be interested in.

Anyone can think of good and creative business ideas, but the idea here is to design value for your customers on paper first. By using the Value Proposition Canvas, you identify customer needs, and products and services to meet those needs, in a visual and structured way.

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