Using the Value Proposition Canvas to understand your customers

Why should a customer buy a product or service from you?

If you don’t know the answer to this question, you might need the Value Proposition Canvas.

What is value proposition?

Value proposition is an expectation of value – why a customer or business should buy your product or service. It’s a promise of value to be delivered. A value proposition should be a clear statement that explains how a product solves a pain point, details its benefits, and states the reason why it’s better than similar offerings available. The ideal value proposition is concise and speaks to a customer’s strongest variables in making decisions.

About the Value Proposition Canvas

value proposition canvas
Click to zoom in and Swiss business management theorist Alexander Osterwalder developed the Value Proposition Canvas, which helps you create a match between what you’re selling and what customers want.

The Value Proposition Canvas helps us to understand customers. It collects information about their needs and requirements, so you can design your products and services in a more targeted way. This means increased sales and profitability, and less time wasted on developing ideas that customers may not be interested in.

By using the Value Proposition Canvas, you identify customer needs, and come up with products and services to meet those needs, in a visual and structured way.

Want to learn more? Check out our industry-leading online small business course!

Share this post: