Value Proposition Design

How to Create Products and Services Customers Want

Alexander Osterwalder, Yves Pigneur, Gregory Bernarda, Alan Smith, Trish Papadakos

• Publisher: Wiley
• Year: 2015
• Print ISBN: 9781118968055
• eBook ISBN: 9781118968062
• Edition: 1
• Topic: Business
• Subtopic: Business General
• Index: Business

The authors of the international bestseller Business Model Generation explain how to create value propositions customers can't resist

Value Proposition Design helps you tackle the core challenge of every business — creating compelling products and services customers want to buy. This highly practical book, paired with its online companion, will teach you the processes and tools you need to create products that sell. Using the same stunning visual format as the authors' global bestseller, Business Model Generation, this sequel explains how to use the "Value Proposition Canvas" to design, test, create, and manage products and services customers actually want. Value Proposition Design is for anyone who has been frustrated by new product meetings based on hunches and intuitions; it's for anyone who has watched an expensive new product launch fail in the market. The book will help you understand the patterns of great value propositions, get closer to customers, and avoid wasting time with ideas that won't work. You'll learn the simple process of designing and testing value propositions, that perfectly match customers' needs and desires. In addition the book gives you exclusive access to an online companion on Strategyzer.com. You will be able to assess your work, learn from peers, and download pdfs, checklists, and more. Value Proposition Design is an essential companion to the "Business Model Canvas" from Business Model Generation, a tool embraced globally by startups and large corporations such as MasterCard, 3M, Coca Cola, GE, Fujitsu, LEGO, Colgate-Palmolive, and many more.
Value Proposition Design gives you a proven methodology for success, with value propositions that sell, embedded in profitable business models."

1: Canvas

The Value Proposition Canvas has two sides. With the Customer Profile you clarify your customer understanding. With the Value Map you describe how you intend to create value for that customer. You achieve Fit between the two when one meets the other.

Create Value

The set of value proposition benefits that you design to attract customers.

Observe Customers

The set of customer characteristics that you assume, observe, and verify in the market.

DEF-I-NI-TION

VALUE PROPOSITION

Describes the benefits customers can

expect from your products and services.

Value Map

The Value (Proposition) Map describes the features of a specific value proposition in your business model in a more structured and detailed way. It breaks your value proposition down into products and services, pain relievers, and gain creators.

	Gain Creators describe how your products and services create customer gains.
	Pain Relievers describe how your products and services alleviate customer pains.
	This is a list of all the Products and Services a value proposition is built around.

Customer Profile

The Customer (Segment) Profile describes a specific customer segment in your business model in a more structured and detailed way. It breaks the customer down into its jobs, pains, and gains.

You achieve Fit when your value map meets your customer profile—when your products and services produce pain relievers and gain creators that match one or more of the jobs, pains, and gains that are important to your customer.

	Gains describe the outcomes customers want to achieve or the concrete benefits they are seeking.
	Pains describe bad outcomes, risks, and obstacles related to customer jobs.
	Customer Jobs describe what customers are trying to get done in their work and in their lives, as expressed in their own words.

1.1
Customer Profile

Customer Jobs

Jobs describe the things your customers are trying to get done in their work or in their life. A customer job could be the tasks they are trying to perform and complete, the problems they are trying to solve, or the needs they are trying to satisfy. Make sure you take the customer’s perspective when investigating jobs. What you think of as important from your perspective might not be a job customers are actually trying to get done.*

Distinguish between three main types of customer jobs to be done and supporting jobs:

Functional jobs

When your customers try to perform or complete a specific task or solve a specific problem, for example, mow the lawn, eat healthy as a consumer, write a report, or help clients as a professional.

Social jobs

When your customers want to look good or gain power or status. These jobs descr...

Table of contents

• Cover Page
• Title Page
• Copyright
• 1. Canvas
• 2. Design
• 3. Test
• 4. Evolve
• Glossary
• Index