BUS 305-1 Early-Stage Entrepreneurship: Value Proposition Canvas

Zooming the Business Model

1Zooming the Business Model IN and OUT Zoom out Zoom in

12Zooming IN - Value Proposition Canvas

Value Proposition Canvas Components

Value Proposition Customer Profile Gain creators Gains Products & services Customer jobs Pains Pain relievers

13Customer Profile

Customer Profile Elements

Customer Profile Gains Customer jobs Pains Customer Jobs: Tasks customers are trying to accomplish Pains: Challenges, obstacles, risks customers face. Gains: Benefits, outcomes, aspirations of customers.Customer Pains

Types of Customer Pains

Functional Emotional Social Not getting the job done. Negative feelings or fears. How customers believe others perceive them. Complicated return process for online shopping Fear of wrong product delivery for online shopping Buying a non-eco-friendly productCustomer Gains

Types of Customer Gains

Functional Emotional Social Efficiency, speed, etc. Satisfaction, joy, peace of mind. Improved status or recognition. For a fitness app, achieving health goals For a fitness app, feeling good about oneself For a fitness app, getting compliments from peersThe Value Proposition

Value Proposition Components

Value Proposition Gain creators Products & services Pain relievers 00 Products & Services: What you offer Pain Relievers: How you alleviate customer pains Gain Creators: How you offer gainsProducts and Services

Products and Services Overview

List of what you're offering to the customer. The offering should be in line with customer jobs, pains, and gains A cloud storage company might offer data storage, file sharing, and backup servicesPain Relievers

Pain Relievers Explained

How your product/service minimizes or eliminates customers' pains. Clearly identify how each feature of your product/service addresses specific customer pains. A password manager alleviates the pain of forgetting passwords

Direct vs. Indirect Pain Relievers

Direct vs. Indirect Pains Direct pain relievers address the pain head-on, while indirect ones offer alternative solutions Noise-canceling headphones directly combat noise, while providing a calming playlist offers an indirect solution

Quantitative vs. Qualitative Pain Relievers

Quantitative Pains Some pain relievers offer measurable outcomes, like "reduces costs by 50%" VS. Qualitative Pains Some pain relievers provide qualitative relief, like "offers peace of mind"Gain Creators

Gain Creators Explained

How your product/service creates customer gains. Gain creators aren't just about fulfilling basic needs but also about delighting customers A music app might have a basic feature like playing songs (functional gain) but could create personalized playlists (emotional gain) or let users share playlists to social media (social gain)

Expected vs. Unexpected Gains

Expected vs. Unexpected: Expected gains fulfill the basic promises or standards of a product category, while unexpected gains delight and differentiate Hotel providing a clean room is an expected gain; a complimentary room upgrade is unexpected.

Desired vs. Undesired Gains

Desired vs. Undesired While your product might offer various gains, it's crucial to discern which ones the customer truly values.