You have an idea of a product or service you want to bring to life? It is important to first establish your core value proposition prior to diving into requirements and design. To do that we recommend using The Value Proposition Canvas created by Alex Osterwalder (the creator of the Business Model Canvas). The Value Proposition Canvas is a framework to help you design products that customers want. Read our in depth guide to using the Value Proposition Canvas here.
72% of all new product innovations fail to deliver on expectations (a study done by pricing firm – Simon Kucher). That means 7 out of 10 products will fail! The reason for this is not because people are not smart. It’s because the processes & tools are often broken. They don’t focus on building products that customers want. This is why you need the Value Proposition Canvas.
We use the customer profile to visualise track and understand what your customers want. It’s a MAP that becomes clearer the more you learn about your customers. When you are able to describe jobs pains and gains of your customer you have a good understanding of your customers and a clear way of asking yourself, “Are you creating value for customers?”
The first element of the Customer Profile on the right hand side are Customer Jobs. Here you describe the jobs that your customer are trying to get done in their work or personal lives. Jobs can be
The second part of the canvas is the value Map. The Value Map acts as a bridge to the right hand side and describes three things. The value map makes it explicit how your product relieves pains and creates gains
Firstly the products & services you provide that you think will create value for your customers.These could be:
Prioritise across your Customer Profile and Value Map to focus on the things you want to solve.
So here we have it the Value Proposition Canvas. You achieve fit by creating a clear connection between what matters to customers and your products and services ease pains and create gains. SOUNDS LIKE COMMON SENSE BUT NOT COMMON PRACTICE. If you don’t map this you won’t be focussed on creating value for your customer.
What you have just achieved by filling out the canvas prior to launching your product is Problem Solution Fit NOT Product Market Fit. Product Solution fit is when you create a solution that you THINK creates value for your customers. Product Market fit is when you create a solution that you Know creates value for your customers which validated by customers using your product.