The Too�s �nd Process of V ���� Propos�t �o� D� s� g� XII
The he�rt of V ���� Propos�t �o� D� s� g� is �bout �pp��ing Too�s to the mess� Se�rch for v��ue propositions th�t customers w�nt �nd then keeping them ��igned with wh�t customers w�nt in Post-se�rch. V ���� Propos�t �o� D� s� g� shows �ou how to use the V��ue Proposition C�nv�s to Design �nd Test gre�t v�� ue propositions in �n iter�tive se�rch for wh�t customers w�nt. V�� ue proposition design is � never-ending process in which �ou need to Evo�ve �our v�� ue proposition(s) const�nt�� to keep it re�ev�nt to customers.
Zoom out
O R T N I / D P V / M O C . R E Z Y G E T A R T S
Progress M�n�ge the mess � �nd non�ine�r process of v��ue proposition design �nd reduce risk b � s�stem�tic���� �pp��ing �dequ�te too�s �nd processes. Zoom in
C�nv�s
Design / Test
Too�s
Se�rch
Evo�ve Post-se�rch
XIII O R T N I / D P V / M O C . R E Z Y G E T A R T S
An Integr�ted Suite of Too�s XIV O R T N I / D P V / M O C . R E Z Y G E T A R T S
The V��ue Proposition C�nv�s is the too� �t the center of this book. It m�kes v��ue propositions visib�e �nd t�ngib�e �nd thus e�sier to discuss �nd m�n�ge. It perfect�� integr�tes with the Business Mode� C�nv�s �nd the Environment M�p, two too�s th�t �re discussed in det�i� in B� s��� ss Mo ��� G���r �t � o�,* the sister book to this one. Together, the� sh�pe the found�tion of � suite of business too�s.
The V��ue Proposition C�nv�s zooms into the det�i�s of two of the bui �ding b�ocks of the Business Mode� C�nv�s.
Zoom out
The Environment M�p he�ps �ou ����rst ��� t �� co�t � xt �� w ��c� �o� cr ��t �. The Business Mode� C�nv�s he�ps �ou cr ��t � v ���� � or �o�r b�s���ss. The V��ue Proposition C �nv�s he�ps �ou cr ��t � v ���� � or �o�r c�sto��r.
XV O R T N I / D P V / M O C . R E Z Y G E T A R T S
Refresher: The Business Mode� C�nv�s The Business Model Canvas XVI O R T N I / D P V / M O C . R E Z Y G E T A R T S
Key Partners
Embed �our v�� ue proposition in � vi�b�e business mode� to c�pture v��ue for �our org�niz�tion. To do so, �ou c�n use the Business Mode� C�nv�s, � too� to describe how �our org�niz�tion cre�tes, de�ivers, �nd c�ptures v��ue. The Business Mode�, �nd V��ue Proposition C�nv�s perfect�� integr�te, with the ��tter being �ike � p�ug-in to the former th�t ���ows �ou to zoom into the det�i�s of how �ou �re cre�ting v��ue for customers.
Customer Segments
Segment. It is how �n org�niz�tion
�re the groups of peop�e �nd/or org�-
c�ptures v��ue with � price th�t
niz�tions � comp�n� or org�niz�tion
customers �re wi��ing to p��.
Key Activities
Designed for:
Designed by:
Value Propositions
Customer Relationships
�ims to re�ch �nd cre�te v��ue for with � dedic�ted V��ue Proposition.
Ke� Resources �re the most import�nt �ssets
V��ue Propositions
required to offer �nd de�iver the previ-
�re b�sed on � bund�e of products
ous�� described e�ements.
Key Resources
Channels
�nd services th�t cre�te v��ue for � CustomerSegment.
Ke� Activities �re the most import�nt �ctivities �n
Ch�nne�s
org�niz�tion needs to perform we��.
describe how � V��ue Proposition is
The refresher of the Business Mode � C�nv�s on this spre�d is sufficient to work through this book �nd cre�te gre�t v��ue propositions. Go to the on�ine resources if �ou �re interested in more or get Business Mode� Gener�tion,* the sister pub�ic�tion to this book.
communic �ted �nd de�ivered to �
Ke� P�rtnerships
Customer Segment through commu-
shows the network of supp�iers
nic�tion, distribution, �nd s��es
�nd p�rtners th�t bring in extern��
Ch�nne�s.
resources �nd �ctivities.
Customer Re��tionships
Cost Structure
out�ine wh�t t�pe of re��tionship is
describes ��� costs incurred to oper-
est�b�ished �nd m�int�ined with
�te � business mode�.
Cost Structure
Revenue Streams
e�ch Customer Segment, �nd the� exp��in how customers �re �cquired
Pro �t
�nd ret�ined.
� s c��c���t �� b � s�btr �ct �� g t �� tot �� o � ��� costs �� t �� Cost Str �c-
�������� ��: Business Model Foundry AG The makers of Business Model Generation and Strategyzer
Date:
Version:
Customer Segments
XVII O R T N I / D P V / M O C . R E Z Y G E T A R T S
XXII O R T N I / D P V / M O C . R E Z Y G E T A R T S
Assess Your V��ue Proposition Design Ski��s
XXIII O R T N I / D P V / M O C . R E Z Y G E T A R T S
Comp�ete our on�ine test �nd �ssess whether �ou h�ve the �ttitude �nd ski��s required to s�stem�tic���� be successfu� �t v��ue proposition design. T�ke the test before �nd �fter working through V ���� Propos�t �o� D� s� g� to me�sure �our progress. T ��� �o�r s����s t �st o�����
Entrepreneuri�� Know�edge
Too� Ski��s
Design Thinking Ski��s
Customer Emp�th�
Experiment�tion Ski��s
You enjo� tr�ing out new things. You don’t see the
You s�stem�tic���� use the V��ue Proposition
You exp�ore mu�tip�e ��tern�tives before pick-
You re�ent�ess�� t�ke � customer perspective �nd
You s�stem �tic���� seek evidence th�t supports
risk of f�i�ing �s � thre�t but �n opportunit� to
C�nv�s, Business Mode� C�nv�s, �nd other too�s
ing �nd refining � p�rticu��r direction. You �re
�re even better �t �istening to customers then
�our ide�s �nd tests �our vision. You experiment
�e�rn �nd progress. You e�si�� n�vig�te between
�nd processes in �our se�rch for gre�t v��ue prop-
comfort�b�e with the non�ine�r �nd iter�tive
se��ing to them.
�t the e�r�iest st�ges to �e�rn wh�t works �nd
the str�tegic �nd the t�ctic��.
ositions �nd business mode�s.
n�ture of v��ue cre�tion.
wh�t doesn’t.
c�n v�s
�
The V��ue Proposition C�nv�s h�s two sides. With the Customer Profi�e p. 10 �ou c��rif� �our customer underst �nding. With the V��ue M�p p. 26 �ou describe how �ou intend to cre�te v��ue for th�t customer. You �chieve Fit p. 40 between the two when one meets the other.
6
7
0 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
0 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
�
�
F it Cre�te V��ue The set of v��ue proposition benefits th�t �ou design to �ttr�ct customers.
DEF�I�NI�TION
VALUE PROPOSITION D� scr �b� s t �� b����ts c� sto��rs c�� � xp�ct � ro� �o�r pro��cts ��� s�rv �c� s.
Observe Customers The set of customer ch�r�cteristics th�t �ou �ssume, observe, �nd verif� in the m�rket.
G�in Cre�tors describe how
G�ins describe the outcomes
�our products �nd services
customers w�nt to �chieve or
cre�te customer g�ins.
the concrete benefits the� �re seeking.
8 0 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
�
V��ue M�p
Customer Profi�e
The V��ue (Proposition) M�p describes
The Customer (Segment) Profi�e describes
the fe�tures of � specific v��ue proposition
� specific customer segment in �our
Fit
in �our business mode� in � more structured �nd det�i�ed w��. It bre�ks �our v��ue proposition down into products �nd services,
business mode� in � more structured �nd det�i�ed w��. It bre�ks the customer down into its jobs, p�ins, �nd g�ins.
p�in re�ievers, �nd g�in cre�tors.
This is � �ist of ��� the
Customer �obs describe
Products �nd Services
wh�t customers �re tr�ing
� v��ue proposition is
to get done in their work�nd
bui�t �round.
in their �ives, �s expressed in their own words. P�in Re�ievers describe how
P�ins describe b�d outcomes,
�our products �nd services
risks, �nd obst�c�es re��ted to
���evi�te customer p�ins.
customer jobs. You �chieve Fit when �our v��ue m�p meets �our
9 0 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
�
Customer �obs 12 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
� �
�obs describe the things �our customers �re
Supporting jobs
�ob context
tr�ing to get done in their work or in their �ife.
Customers ��so perform supporting jobs in the
Customer jobs often depend on the specific
A customer job cou�d be the t�sks the� �re tr�ing
context of purch�sing �nd consuming v��ue either
context in which the� �re performed. The context
to perform �nd comp�ete, the prob�ems the�
�s consumers or �s profession��s. These jobs �rise
m�� impose cert�in constr�ints or �imit�tions.
�re tr�ing to so�ve, or the needs the� �re tr�ing
from three different ro�es:
For ex�mp�e, c���ing somebod� on the �� is
to s�tisf�. M�ke sure �ou t�ke the customer’s perspective when investig�ting jobs. Wh�t �ou
different when �ou �re tr�ve�ing on � tr�in th�n BUYER OF VALUE: jobs re��ted to bu�ing
when �ou �re driving � c�r. Likewise, going to the
think of �s import�nt from �our perspective might
v��ue, such �s comp�ring offers, deciding which
movies with �our kids is different th�n going with
not be � job customers �re �ctu���� tr�ing to get
products to bu�, st�nding in � checkout �ine,
�our p�rtner.
done.*
comp �eting � purch�se, or t�king de�iver� of
Distinguish between three m�in t�pes of
� product or service.
customer jobs to be done �nd supporting jobs:
�ob import�nce It �s �� port ��t to �c��ow ���g�
COCREATOR OF VALUE: jobs re��ted to
t ��t �ot ��� jobs ��v � t �� s���
Function�� jobs
cocre�ting v��ue with �our org�niz�tion, such
�� port ��c� to �o�r c�sto��r. So��
When �our customers tr� to perform or comp�ete
�s posting product reviews �nd feedb�ck or
��tt �r �or � �� � c�sto��r’s wor �
� specific t �sk or so�ve � specific prob�em,
even p�rticip�ting in the design of � product
or ���� b�c��s� ������ g to g�t t ���
for ex�mp�e, mow the ��wn, e�t he��th� �s �
or service.
�o�� co��� ��v � s�r �o�s r ����-
consumer, write � report, or he�p c�ients �s
� profession��.
c�t �o�s. So�� �r � ��s�g���c��t
+
Import�nt
Insignific�nt
-
TRANSFERRER OF VALUE: jobs re ��ted to the
b�c��s� t �� c�sto��r c�r �s �bo�t ot ��r t ���gs
end of � v��ue proposition’s �ife c�c�e, such �s
�or �. So��t ���s � c�sto��r w ��� ���� � job
Soci�� jobs
c�nce�ing � subscription, disposing of � product,
cr �c��� b�c��s� �t occ�rs � r� q���t �� or b�c��s�
When �our customers w�nt to �ook good or g�in
tr�nsferring it to others, or rese��ing it.
�t w ��� r �s��t �� � ��s�r �� or ��w ��t �� o�tco��.
power or st�tus. These jobs describe how customers w�nt to be perceived b� others, for ex�mp�e,
�ook trend� �s � consumer or be perceived �s competent �s � profession��.
Person��/emotion�� jobs When �our customers seek � specific emotion��
* T �� jobs to b � �o�� co�c� pt w � s ��v ��op�� ���� p�����t �� b� s�v � r �� b�s��� ss t � ����rs ��c�����g A�t � o�� U�w � c� o � t ��
13 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
� �
The fo��owing �ist of trigger questions c�n he�p �ou think of different potenti�� customer p�ins:
Customer P�ins
14 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
� �
How do �our customers define too cost ��?
P�ins describe �n�thing th�t �nno�s �our custom-
Risks (undesired potenti�� outcomes)
ers before, during, �nd �fter tr�ing to get � job
Wh�t cou�d go wrong �nd h�ve import�nt neg-
done or simp�� prevents them from getting � job
�tive consequences (e.g., “I might �ose credibi�it�
done. P�ins ��so describe risks, th�t is, potenti��
when using this t�pe of so�ution,” or e.g. “A securit�
�re their frustr�tions, �nno��nces, or things
b�d outcomes, re��ted to getting � job done b�d��
bre�ch wou�d be dis�strous for us”).
th�t give them � he�d�che?
or not �t ���.
or requires subst�nti�� efforts?
P�in severit� Seek to identif� three t�pes of customer p�ins �nd
A c�sto��r p��� c�� b� � xtr ��� or
how severe customers find them:
�o��r �t � , s�����r to �ow jobs c��
How �re current v��ue propositions underper-
�re the� missing? Are there perform�nce issues th�t �nno� them or m��functions the� cite?
Extreme
Wh�t �re the m�in difficu�ties �nd ch���enges
�our customers encounter? Do the� underst�nd
c�sto��r.
�nd ch�r�cteristics
how things work, h�ve difficu�ties getting cert�in Moder�te
-
P�ins �re function�� (e.g., � so�ution doesn’t work, doesn’t work we��, or h�s neg�tive side effects), soci �� (“I �ook b�d doing this”), emotion�� (“I fee�
things done, or resist p�rticu��r jobs for specific re�sons?
b�d ever� time I do this”), or �nci���r� (“It’s �nno�-
Wh�t neg�tive soci�� consequences do �our customers encounter or fe�r? Are the� �fr�id of
ing to go to the store for this”). This m�� ��so
Tip: M�ke p�ins concrete.
invo�ve undesired ch�r�cteristics customers don’t
To c�e�r�� differenti�te jobs, p�ins, �nd g�ins,
�ike (e.g., “Running �t the g�m is boring,” or “This
describe them �s concrete�� �s possib�e. For
design is ug��”).
ex�mp�e, when � customer s��s “w�iting in �ine w�s � w�ste of time,” �sk �fter how m�n� minutes
Obst�c�es
ex�ct�� it beg�n to fee� �ike w�sted time. Th�t w��
These �re things th�t prevent customers from
�ou c�n note “w�sting more th�n x minutes st�nd-
even getting st�rted with � job or th�t s�ow them
ing in �ine.” When �ou underst�nd how ex�ct��
down (e.g., “I ��ck the time to do get this job done
customers me�sure p�in severit�, �ou c�n design
�ccur�te��,” or e.g. “I c�n’t �fford �n� of the exist-
better p�in re�ievers in �our v��ue proposition.
ing so�utions”).
Wh�t m�kes �our customers fee� b�d? Wh�t
forming for �our customers? Which fe�tures
+
b� �� port ��t or ��s�g���c��t to t ��
Undesired outcomes, prob�ems,
T�kes � �ot of time, costs too much mone�,
� �oss of f�ce, power, trust, or st�tus?
Wh�t risks do �our customers fe�r? Are the�
�fr�id of fin�nci��, soci��, or technic�� risks, or �re the� �sking themse�ves wh�t cou�d go wrong?
Wh�t’s keeping �our customers �w�ke �t night? Wh�t �re their big issues, concerns, �nd worries?
Wh�t common mist�kes do �our customers m�ke? Are the� using � so�ution the wrong w��?
Wh�t b�rriers �re keeping �our customers from
�dopting � v��ue proposition? Are there upfront investment costs, � steep �e�rning curve, or other obst�c�es preventing �doption?
15 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
� �
The fo��owing �ist of trigger questions c�n he�p �ou think of different potenti�� customer g�ins:
Customer G�ins
16 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
� �
Which s�vings wou�d m�ke �our customers
G�ins describe the outcomes �nd benefits �our
Unexpected g�ins
customers w�nt. Some g�ins �re required,
These �re g�ins th�t go be�ond customer expec-
expected, or desired b� customers, �nd some
t�tions �nd desires. The� wou�dn’t even come
wou�d surprise them. G�ins inc�ude function��
up with them if �ou �sked them. Before App�e
uti�it�, soci�� g�ins, positive emotions, �nd cost
brought touch screens�nd the App Store to the
s�vings.
m�instre�m, nobod� re���� thought of them �s
customers? Which specific fe�tures do the�
p�rt of � phone.
enjo�? Wh�t perform�nce �nd qu��it� do the�
h�pp�? Which s�vings in terms of time, mone�,
�nd effort wou�d the� v��ue?
Seek to identif� four t�pes of customer g�ins in terms of outcomes �nd benefits:
Wh�t qu��it� �eve�s do the� expect, �nd wh�t wou�d the� wish for more or �ess of?
How do current v��ue propositions de�ight �our
expect?
G�in re�ev�nce
+
A c�sto��r g��� c�� ���� �ss��t ���
Required g�ins
or ��c� to ��v � , j �st ���� p���s c��
These �re g�ins without which � so�ution wou�dn’t
���� � xtr ��� or �o��r �t � to t ���.
Wh�t wou�d m�ke �our customers’ jobs or �ives e�sier? Cou�d there be � ��tter �e�rning curve, more services, or �ower costs of ownership?
Essenti��
work. For ex�mp�e, the most b�sic expect�tion
Wh�t positive soci�� consequences do �our customers desire? Wh�t m�kes them �ook good?
th�t we h�ve from � sm�rtphone is th�t we c�n
Wh�t incre�ses their power or their st�tus?
m�ke � c��� with it.
Nice to h�ve
-
Wh�t �re customers �ooking for most? Are the� se�rching for good design, gu�r�ntees, specific
Expected g�ins
or more fe�tures?
These �re re��tive�� b�sic g�ins th�t we expect
Tip: M�ke g�ins concrete.
from � so�ution, even if it cou�d work without them.
As with p�ins, it’s better to describe g�ins �s
For ex�mp�e, since App�e ��unched the iPhone, we
concrete �� �s possib�e to c�e�r�� differenti�te
expect phones to be we��-designed �nd �ook good.
jobs, p�ins, �nd g�ins from one �nother. Ask how
Wh�t do customers dre�m �bout? Wh�t do the� �spire to �chieve, or wh�t wou�d be � big re�ief to them?
much the�’d expect or dre�m of when � customer
How do �our customers me�sure success �nd f�i�ure? How do the� g�uge perform�nce or cost?
Desired g�ins
indic�tes “better perform�nce” �s � desired g�in.
These �re g�ins th�t go be�ond wh�t we expect
Th�t w�� �ou c�n note “wou�d �ove �n incre�sed
of �dopting � v��ue proposition? Do the� desire
from � so�ution but wou�d �ove to h�ve if we cou�d.
perform�nce of more th�n x .” When �ou under-
�ower cost, �ess investment, �ower risk, or better
These �re usu���� g�ins th�t customers wou�d
st�nd how ex�ct�� customers me�sure g�ins (i.e.,
qu��it�?
come up with if �ou �sked them. For ex�mp�e, we
outcomes �nd benefits), �ou c�n design better
desire sm�rtphones to be se�m�ess�� integr�ted
g�in cre�tors in �our v��ue proposition.
with our other devices.
Wh�t wou�d incre�se �our customers’ �ike�ihood
Dow ��o�� tr �gg�r q��st �o�s
17 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
� �
R�nking �obs, P�ins, �nd G�ins 20 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
� �
A�though individu�� customer preferences v�r�, �ou need to get � sense of customer priorities. I nvestig�te which jobs the m� jorit� consider import�nt or insignific�nt. Find out which p�ins the� find extreme versus mere�� moder�te. Le�rn which g�ins the� find essenti �� �nd which �re simp�� nice to h�ve. R�nking jobs, p�ins, �nd g�ins is essenti�� in order to design v��ue propositions th�t �ddress things customers re���� c�re �bout. Of course, it’s difficu�t to une�rth wh�t re���� m�tters to customers, but �our underst�nding wi�� improve with ever� customer inter�ction �nd experiment. It doesn’t m�tter if �ou st�rt out with � r�nking th�t is b�sed on wh�t �ou think is import�nt to �our potenti�� customers �s �ong �s �ou strive to test
�ob import�nce
P�in severit�
G�in re�ev�nce
R�nk jobs �ccording to their
R�nk p�ins �ccording to
R�nk g�ins �ccording to
import�nce to customers.
how extreme the� �re in the
how essenti�� the� �re in
customers’ e�es.
the customers’ e�es.
+
Import�nt
+
Extreme
+
Essenti��
21 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
� �
i�p���� s���� set + a������ ca���� r�n “day jo�” wel�
th�t r�nking unti� it tru�� re�ects priorities from the customer’s perspective.
i�p���� o� b���� a b����e�s
lo�k ��o� with col��a�ue�, bo�s, c������ ma�� de���i�n� with con�denc� com����cat� + ��l� i����
a����� �n� redu�e ��sk col��b�rat� with o���r� o� ��l� t�e� �n�, le���, + a�p�� meth���
ma�� t���g� pe���e w�n� conv���e o���r� ab�u� p������e� meth��� s��� u� �� ��t�
get���� s��c� i� ca���� �� je����diz��g i� go��g d�w� w���g p�th man�geme�t “not get���� i�” de����� w�th ri�k + u���r��i�t�
be��g a����i�ted with a �ig f a����� la�k �f s�f����e�t b�d��� ma���� t���g� no���� wan��
la�k �f t�m� wa����� ��m� with i���� t��� don't no c���r p�th wo�k to a�p��ing meth�� “t������tin�” meth��� �� bo���� o�n con��xt con���t t���'s ha�� �� ��rk t������ to� m�ch t���r�
hel�� w�th p������o� �� pay ra�s� b�y-i� fr o� le�����hip + t�a� get re��g��zed b� t�a� hel� w�e� s��c�
a�p����b�� i���� can a�p�� with con�denc� ea�� �� u�d�r�ta�d
hom� �u� valu� p������ti��� le��� �� re�u��� (i�����y q��c� wins) hel�� �� com����cat� m� i���� c���r�y c���r i�d��ato�� to me�s��� p���re�s le��� �� bet��� col��b�rat��� concrete tips (e.g., �� redu�e ri�k)
Best Pr�ctices for M�pping �obs, P�ins, �nd G�ins 24 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
Avoid frequent�� committed mist�kes when profi�ing � customer, �nd inste�d fo��ow these best pr�ctices.
× Common Mist�kes
P�ins vs. G�ins When �ou get st�rted with the customer profi�e,
�ou might simp�� put the s�me ide�s in p�ins �nd
� �
Ask “wh�” sever�� times unti� �ou re���� underst�nd �our customers’ jobs to be done.
Mixing sever��
Mixing jobs �nd
Focusing on function��
Listing jobs, p�ins, �nd
Identif�ing few jobs,
Being too v�gue in
g�ins �s opposites of e�ch other. For ex�mp�e,
Another issue when �ou get st�rted with the
customer segments
outcomes
jobs on�� �nd forgetting
g�ins with �our v��ue
p�ins, �nd g�ins
descriptions of p�ins
if one of the customers’ jobs to be done is “e�rn
customer profi�e is th�t �ou might sett�e with
soci �� �nd emotion��
proposition in mind
�nd g�ins
more mone�,” �ou might st�rt b� �dding “s���r�
� superfici�� underst�nding of �our customer’s
incre�se to g�ins” �nd “s���r� decre�se” to p�ins.
jobs. To �void this, �ou need to �sk �ourse�f wh�
into one profi�e
jobs
� customer w�nts to perform � cert�in job to dig
√ Best Pr�ctices
H�r �’s � b�tt �r w �� to �o �t:
Find out precise�� how much more mone� the
deeper tow�rd the re�� motiv�tions. For ex�mp�e, wh� might � customer w�nt to
customer expects to e�rn so it fee�s �ike � g�in
�e�rn � foreign ��ngu�ge? M��be bec�use the
�nd investig�te wh�t decre�se wou�d fee� �ike
“re��” customer job to be done is to improve his
� p�in.
CV. Wh� does he w�nt to improve his CV? M��be
In the p�ins, �dd the b�rriers th�t prevent or
bec�use he w�nts to e�rn more mone�.
M�ke � V��ue Proposi-
�obs �re the t�sks
Sometimes soci�� or
When �ou m�p �our
A good customer profi�e
M�ke p�ins �nd g�ins
tion C�nv�s for ever�
customers �re tr�ing to
emotion�� jobs �re even
customer, �ou shou�d
is fu�� of stick� notes,
t�ngib�e �nd concrete.
different customer
perform, the prob�ems
more import�nt th�n the
proceed �ike �n �nthro-
bec�use most customers R�ther th�n just writing
segment. If �ou se�� to
the� �re tr�ing to so�ve,
“visib�e” function�� jobs.
po�ogist �nd “forget”
h�ve � �ot of p�ins �nd
“s���r� incre�se” in
m�ke it difficu�t to get � job done. In our ex�m-
comp�nies, �sk �ourse�f
or the needs the� �re
“Looking good in front of
wh�t �ou �re offering.
expect or desire � �ot of
g�ins, specif� how
p�e the p�in might be “m� emp�o�er doesn’t
under��ing jobs to be done th�t re���� drive
if �ou h�ve different
tr�ing to s�tisf�, where�s others” might be more
For ex�mp�e, � business
g�ins. M�p out ��� �our
much of �n incre�se �
give r�ises.”
customers.
t�pes of customers
g�ins �re the concrete
import�nt th�n finding �
pub�isher shou�d not
(potenti��) customers’
customer is seeking.
within e�ch comp�n�
outcomes the� w�nt to
gre�t technic�� so�ution
m�p jobs, p�ins, �nd
import�nt jobs, extreme
R�ther th�n writing
the job done. In our ex�mp�e the p�in cou�d be
(e.g., users, bu�ers).
�chieve — or �void �nd
th�t he�ps comp�ete the
g�ins mere�� re��ted to
p�ins, �nd essenti ��
“t�kes too �ong” in p�ins,
“might not be �b�e to �fford m� chi�d’s future
e�imin�te in the c�se of
job effective��.
books, bec�use � re�der
g�ins.
indic�te how �ong “too
co��ege tuition.”
p�ins.
h�s the choice between
�ong” �ctu���� is. This wi��
business books, consu�-
���ow �ou to underst�nd
t�nts, YouTube videos, or
how ex�ct�� customers
even comp�eting �n MBA
me�sure success �nd
progr�m or tr�ining. Go
f�i�ure.
be�ond the jobs, p�ins,
�nd g�ins �ou intend
In the p�ins, �dd the risks re��ted to not getting
Don’t sett�e unti� �ou re���� underst�nd the
25 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
� �
Products �nd Services 28 2 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
�
This is simp�� � �ist of wh�t �ou offer. Think of it �s ��� the items �our customers c�n see in �our shop window — met�phoric���� spe�king. It’s �n enumer�tion of ��� the products �nd services �our v��ue proposition bui�ds on. This bund�e of products �nd services he�ps �our customers comp�ete either function��, soci��, or emotion�� jobs or he�ps them s�tisf� b�sic needs. It is cruci�� to �cknow�edge th�t products �nd services don’t cre�te v��ue ��one on�� in re��tionship to � specific customer segment �nd their jobs, p�ins, �nd g�ins.
Your v��ue proposition is �ike�� to be composed of v�rious t�pes of products �nd services:
Ph�sic��/t�ngib�e Goods, such �s m�nuf�cturedproducts.
Int�ngib�e Products such �s cop�rights or services such
�s �fter-s ��es �ssist�nce.
Digit�� Products such �s music down�o�ds or services such �s on�ine recommend�tions.
Fin�nci�� Products such �s investment funds �nd
Your �ist of products �nd services m�� ��so inc�ude supporting ones th�t he�p �our customers perform the ro�es of bu�er (those th�t he�p customers comp�re offers, decide, �nd bu�), co-cre�tor (those th�t he�p customers co-design v��ue propositions), �nd tr�nsferrer (those th�t he�p customers dispose of � product).
29 2 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
�
insur�nces or services such �s the fin�ncing of � purch�se.
Re�ev�nce It �s �ss��t ��� to �c��ow ���g� t ��t �ot ��� pro��cts ��� s�rv �c�s ��v �
+
Essenti��
t �� s��� r ���v ��c� to �o�r c�sto��rs. So�� pro��cts ��� s�rv �c�s �r � �ss��t ��� to �o�r v ���� propos�t �o� , so�� �r � ��r ��� ��c� to ��v � .
Nice to h�ve
-
P�in Re�ievers 30 2 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
�
P�in re�ievers describe how ex�ct�� �our products �nd services ���evi�te specific customer p�ins. The� exp�icit�� out�ine how �ou intend to e�imin�te or reduce some of the things th�t �nno� �our customers before, during, or �fter the� �re tr�ing to comp�ete � job or th�t prevent them from doing so.
The fo��owing �ist of trigger questions c�n he�p �ou
Re�ev�nce
think of different w��s �our products �nd services
A p��� r ����v �r c�� b� �or � or ��ss
m�� he�p �our customers ���evi�te p�ins.
v ����b�� to t �� c�sto��r. M��� s�r �
Ask �ourse�f: Cou�d �our products �nd services…
p��� r ����v �rs ��� o��s t ��t �r �
produce s�vings? In terms of time, mone�, or
� xtr ��� �ss��s, o � t �� �� � r ���c��
efforts.
w �� , ��� cr ��t � � �ot o � v ����. T ��
m�ke �our customers fee� better? B� ki��ing frus-
��tt �r ��r ��� r ����v � �o��r � t � p���s.
tr�tions, �nno��nces, �nd other things th�t give customers � he�d�che.
fix underperforming so�utions? B� introducing new fe�tures, better perform�nce, or enh�nced qu��it�.
put �n end to difficu�ties �nd ch���enges �our customers encounter? B� m�king things e�sier or e�imin�ting obst�c�es.
wipe out neg�tive soci�� consequences �our customers encounter or fe�r? In terms of �oss of f�ce or �ost power, trust, or st�tus.
e�imin�te risks �our customers fe�r? In terms of fin�nci��, soci��, technic�� risks, or things th�t cou�d potenti���� go wrong.
he�p �our customers better s�eep �t night? B� �ddressing signific�nt issues, diminishing concerns, or e�imin�ting worries.
�imit or er�dic�te common mist�kes customers m�ke? B� he�ping them use � so�ution the right w��.
e�imin�te b�rriers th�t �re keeping �our customer
31 2 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
�
��c� to ��v �. T �� � or ��r r ����v �
Gre�t v��ue propositions focus on p�ins th�t m�tter to customers, in p�rticu��r extreme p�ins. You don’t need to come up with � p�in re�iever for ever� p�in �ou’ve identified in the customer profi�e — no v��ue proposition c�n do this. Gre�t v��ue propositions often focus on�� on few p�ins th�t the� ���evi�te extreme�� we��.
+
Essenti��
�o� ��ff�r ��t ��t � b�tw ��� �ss��t ���
Nice to h�ve
-
G�in Cre�tors 32 2 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
�
G�in Cre�tors describe how �our products �nd services cre�te customer g�ins. The� exp�icit�� out�ine how �ou intend to produce outcomes �nd benefits th�t �our customer expects, desires, or wou�d be surprised b�, inc�uding function�� uti�it�, soci�� g�ins, positive emotions, �nd cost s�vings.
The fo��owing �ist of trigger questions c�n he�p
expected, desired, or unexpected outcomes �nd benefits.
he�p m�ke �doption e�sier? Through �ower cost, fewerinvestments, �ower risk, better qu��it�,
services m�� he�p �our customers obt�in required,
improved perform�nce, or better design.
33
he�p m�ke �doption e�sier? Through �ower cost, improvedinvestments, �ower risk, better qu��it�, improved perform�nce, or better design.
Ask �ourse�f: Cou�d �our products �nd services…
Re�ev�nce
As with p�in re�ievers, g�in cre�tors don’t need to �ddress ever� g�in identified in the customer profi�e. Focus on those th�t �re re�ev�nt to customers �nd where �our products �nd services c�n m�ke � difference.
�ou think of different w��s �our products �nd
cre�te s�vings th�t p�e�se �our customers?
��ss r ���v ��t o�tco��s ��� b����ts
produce outcomes �our customers expect or
� or t �� c�sto��r j �st ���� w � ��v �
th�t exceed their expect �tions? B� offering
s��� � or p��� r ����v �rs. M��� s�r �
qu��it� �eve�s, more of something, or �ess of
�o� ��ff�r ��t ��t � b�tw ��� �ss��t ���
something.
��� ��c� to ��v � g��� cr ��tors.
outperform current v��ue propositions �nd de�ight �our customers? Reg�rding specific fe�tures, perform�nce, or qu��it�.
m�ke �our customers’ work or �ife e�sier? Vi� better us�bi�it�, �ccessibi �it�, more services, or
�ower cost of ownership.
cre�te positive soci�� consequences? B� m�king them �ook good or producing�n incre�se in power or st�tus.
do something specific th�t customers �re �ooking for? In terms of good design, gu�r�ntees, or specific or more fe �tures.
A g��� cr ��tor c�� pro��c� �or � or
In terms of time, mone�, �nd effort.
fu�fi�� � desire customers dre�m �bout? B� he�ping them �chieve their �spir�tions or getting re�ief from � h�rdship?
+
Essenti��
Nice to h�ve
-
2 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
�
Best Pr�ctices for M�pping V��ue Cre�tion
?
38 2 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
�
39
P�in re�ievers vs. G�in cre�tors
Wh�t is the difference with the p�ins
P�in re�ievers �nd g�in cre�tors both cre�te v��ue
�nd g�ins in the customer profi�e?
for the customer in different w��s. The difference
P�in re�ievers �nd g�in cre�tors �re distinct��
is th�t the former specific���� �ddresses p�ins
different from p�ins �nd g�ins. You h�ve contro�
in the customer profi�e, whi�e the ��tter specifi-
over the former, where�s �ou don’t h�ve contro�
List ��� �our products �nd services
Add products �nd services to the p�in
Offer p�in re�ievers �nd g�in cre�tors
M�ke the unre��istic �ttempt to
c���� �ddresses g�ins. It is ok�� if either of them
over the ��tter. You decide (i.e., design) how �ou
r�ther th�n just those t�rgeted �t �
re�iever �nd g�in cre�tor fie�ds.
th�t h�ve nothing to do with the p�ins
�ddress ��� customer p�ins �nd g�ins.
�ddresses p�ins �nd g�ins �t the s�me time.
intend to cre�te v��ue b� �ddressing specific jobs,
specific segment.
The m�in go�� of these two �re�s is to m�ke the
p�ins, �nd g�ins. You don’t decide over which
customer v��ue cre�tion of �our products �nd
jobs, p�ins, �nd g�ins the customer h�s. And no
services exp�icit.
v��ue proposition �ddresses ��� of � customer’s
× Common Mist�kes
2 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
�
�nd g�ins in the customer profi�e.
√ Best Pr�ctices
jobs, p�ins, �nd g�ins. The best ones �ddress those th�t m�tter most to customers�nd do so
Products �nd services cre�te v��ue
P�in re�ievers �nd g�in cre�tors �re
Remember th�t products �nd services Re��ize th�t gre�t v��ue propositions
extreme�� we��.
on�� in re��tionship to � specific
exp��n�tions or ch�r�cteristics th�t
don’t cre�te v��ue in �bso�ute terms.
customer segment. List on�� the
m�ke the v��ue cre�tion of �our prod-
It is ��w��s re��tive to customers’ jobs, ing which jobs, p�ins, �nd g�ins to p�ins, �nd g�ins.
�re �bout m�king choices reg�rd-
bund�e of products �nd services th�t
ucts �nd services exp�icit. Ex�mp�es
joint�� form � v��ue proposition for �
inc�ude “he�ps s�ve time”, �nd “we��-
proposition �ddresses ��� of them. If
specific customer segment.
designed.”
�ddress �nd which to forgo. No v��ue �our v��ue m�p indic�tes so, it’s prob�b�� bec�use �ou’re not honest �bout ��� the jobs, p�ins, �nd g�ins th�t shou�d be in �our customer profi�e.
Customers expect �nd desire � �ot from products
�nd services, �et the� ��so know the� c�n’t h�ve it ���. Focus on those g�ins th�t m�tter most to customers �nd m�ke � difference.
Are �ou �ddressing essenti�� 42
customer
3 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
g�ins?
�
Fit
43 3 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
�
You �chieve fit when customers get excited �bout �our v��ue proposition, which h�ppens when �ou �ddress import�nt jobs, ���evi�te extreme p�ins, �nd cre�te essenti �� g�ins th�t customers c�re �bout. As we wi�� exp�� in throughout this book, Fit is h�rd to find �nd m�int�in. Striving for fit is the essence of v��ue proposition design.
Your customers �re the judge, jur�, �nd executioner of �our v��ue proposition. The� wi�� be merci�ess if �ou don’t find fit!
Fit Are �ou �ddressing extreme customer p�ins?
Customers h�ve � �ot of p�ins. No org�niz�tion c�n re�son�b�� �ddress ��� of them. Focus on those he�d�ches th�t m�tter most �nd �re insufficient��
Design, Test, Repe�t
62 3 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
�
The se�rch for v��ue propositions th�t meet customer jobs, p�ins, �nd g�ins is � continuous b�ck �nd forth between designing protot�pes �nd testing them. The process is iter �tive r�ther th�n sequenti��. The go�� of V ���� Propos�t �o� D� s� g� is to test ide�s �s quick�� �s possib�e in order to �e�rn, cre�te better designs, �nd test �g�in.
63 3 . / S A V N A C / D P V / M O C . R E Z Y G E T A R T S
�
design
test
design
2
Kick-st�rt v��ue proposition design with Protot�ping Possibi�ities p. 74 for one of �our St�rting Points p. 86. Sh�pe �our v��ue propositions b� Underst�nding Customers p. 104 , then se�ect which ones �ou w�nt to further exp �ore b� M�king Choices p. 120 �nd Finding the Right Business Mode � p. 142. If �ou �re �n existing comp �n�, discover the p�rticu��rities of Designing in �n Est�b�ished Org�niz�tion p. 158.
test
3
Reduce the risk �nd uncert�int� of �our ide�s for new �nd improved v��ue propositions b� deciding Wh�t to Test p. 188. Then, get st�rted with Testing Step b� Step p. 196 �nd dr�wing from the Experiment Libr�r� p. 214 before Bringing it A�� Together p. 238 �nd me�suring �our progress.
Overview of the Testing Process 198
199
2 . 3 / T S E T / D P V / M O C . R E Z Y G E T A R T S
+
+ Test C�rd
Le�rning C�rd
-
!
-
Extr�ct H�potheses
Prioritize H�potheses
Design Test
Prioritize Tests
Run Tests
C�pture Le�rnings
M�ke Progress
→ p. 200
→ p. 202
→ p. 204
→ p. 205
→ p. 205
→ p. 206
→ p. 242–245
2 . 3 / T S E T / D P V / M O C . R E Z Y G E T A R T S
evo� ve
4
Use the V��ue Proposition �nd Business Mode� C�nv�s �s � sh�red ��ngu�ge to Cre�te A�ignment p. 260 throughout ever� p�rt of �our org�niz�tion whi�e it continuous �� evo�ves. M�ke sure �ou const�nt�� Me�sure �nd Monitor p. 262 �our v��ue propositions �nd business mode�s in order to Improve Re�ent�ess�� p. 264 �nd Reinvent Yourse�f Const�nt�� p. 266.
�fter word
G�oss�r�
276 D R O W R E T F A / D P V / M O C . R E Z Y G E T A R T S
(Business) H�pothesis
Customer Insight
Fit
Minimum Vi�b�e Product (MVP)
V��ue M�p
Something th�t needs to be true for �our ide� to
Minor or m� jor bre�kthrough in �our customer
When the e�ements of �our V��ue M�p meet
A mode� of � v��ue proposition designed specific����
Business too� th�t constitutes the �eft-h�nd side
work p�rti���� or fu��� but th�t h�sn't been v��i-
underst�nding he�ping �ou design better v��ue
re�ev�nt jobs, p�ins, �nd g�ins of �our Customer
to v��id�te or inv��id�te one or more h�potheses.
of the V��ue Proposition C�nv�s. M�kes exp�icit
d�ted �et.
propositions �nd business mode�s.
Segment �nd � subst�nti�� number of customers
Business Mode�
Customer P�ins
R�tion��e of how �n org�niz�tion cre�tes, de�ivers
B�d outcomes, risks, �nd obst�c�es th�t custom-
customer p�ins b� e�imin�ting or reducing b�d
V��ue Proposition
�nd c�ptures v��ue.
ers w�nt to �void, not�b�� bec�use the� prevent
G�in Cre�tors
outcomes, risks, �nd obst�c�es th�t prevent
Describes the benefits customers c �n expect from
them from getting � job done (we��).
Describes how products �nd services cre �te g�ins
customers from getting � job done (we��).
�our products �nd services.
Business Mode� C�nv�s
how �our products �nd services cre�te v��ue b�
“hire” �our v��ue proposition to s�tisf� those jobs,
P�in Re�ievers
p�ins, �nd g�ins.
Describes how products �nd services ���evi�te
���evi�ting p�ins �nd cre�ting g�ins.
�nd he�p customers �chieve the outcomes �nd
Str�tegic m�n�gement too� to design, test, bui�d,
Customer Profi�e
benefits the� require, expect, desire, or dre�m of
Products �nd Services
V��ue Proposition C�nv�s
�nd m�n�ge (profit�b�e �nd sc���b�e) business
Business too� th�t constitutes the right-h�nd side
b� getting � job done (we��).
The items th�t �our v��ue proposition is b�sed
Str�tegic m�n�gement too� to design, test, bui�d,
mode�s.
of the V��ue Proposition C�nv�s. Visu��izes the
on th�t �our customers c�n see in �our shop
�nd m�n�ge products �nd services. Fu��� inte-
window — met�phoric���� spe�king.
gr�tes with the Business Mode� C�nv�s.
Progress Bo�rd
V��ue Proposition Design
C��� to Action (CTA)
jobs, p�ins, �nd g�ins of � customer segment (or
�obs to be done
st�keho�der) �ou intend to cre�te v��ue for.
Wh�t customers need, w �nt, or desire to get done
Prompts � subject to perform �n �ction; used
in their work �nd in their �ives.
in �n experiment in order to test one or more
Environment M�p
Str�tegic m�n�gement too� to m�n�ge �nd
The process of designing, testing, bui�ding, �nd
h�potheses.
Str�tegic foresight too� to m�p the context in
Le�n St�rt-up
monitor the business mode� �nd v��ue proposition
m�n�ging v��ue propositions over their entire
which �ou design �nd m�n�ge v��ue propositions
Appro�ch b� Eric Ries b �sed on the Customer
design process �nd tr�ck progress tow�rds �
�ifec�c�e.
�nd business mode�s.
Deve�opment process to e�imin�te w�ste �nd
successfu � v��ue proposition �nd business mode�.
Customer Deve�opment Four-step process invented b� Steve B��nk to
uncert �int� from product deve�opment b� continu-
G�t G�oss�r � p��
reduce the risk �nd uncert�int� in entrepreneur-
Evidence
ous�� bui�ding, testing, �nd �e�rning in �n iter�tive
Protot�ping (�ow/high fide�it�)
ship b� continuous�� testing the h�potheses
Proves or disproves � (business) h�pothesis,
f�shion.
The pr�ctice of bui�ding quick, inexpensive, �nd
under��ing � business mode� with customers �nd
customer insight, or be�ief �bout � v��ue proposi-
st�keho�ders.
tion, business mode�, or the environment.
Customer G�ins
Experiment/Test
rough stud� mode�s to �e�rn �bout the desir�bi�-
Le�rning C�rd
it�, fe�sibi�it� �nd vi�bi�it� of ��tern�tive v��ue
Str�tegic �e�rning too� to c�pture insights from
propositions �nd business mode�s.
rese �rch �nd experiments.
277 D R O W R E T F A / D P V / M O C . R E Z Y G E T A R T S