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, which is intended to guide development of products and services customers are really looking for. It creates a fit between what you’re selling and what customers want.
The Value Proposition Canvas helps us to systematically understand customers . It collects information about their needs and requirements, so you can design of your products and services in a more targeted way. The intended outcome is 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.
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