VALUE PROPOSITION - CANVAS
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When designing our business model, the most important aspect and the one that generates the greatest uncertainty is the value proposition. Being able to find a criterion that confirms that what we are doing makes sense to the client is critical. In this part of the CANVAS you have to validate the solution that you have designed for the problema o la necesidad (+) of your customer segment (+). Once we have detected the problems or needs of a customer segment, then, we proceed to find a solution for them and at the end we will formulate the proposal with a short sentence, addressed to the customer segment to be addressed, in which we will expresses clearly and concisely what we offer to solve a problem or meet a need.
We will design a different value proposition for each customer segment. That proposition has to be sufficiently attractive to make the customer want to pay. We cannot analyse our value proposition in a vacuum, as we should take into account a basic element for any type of business: the customer, since, the success of any business model, it is based on the good relationship between these two elements:
- The value proposition.
- The needs of the client.
The value proposition is the sum of the values provided by the key activities.
It is therefore key to analyse the product-market fit in which we identify a product/service that fits perfectly with a defined and validated market.. Pero, ¿cómo valoro si lo que estoy haciendo realmente tiene sentido o no? La respuesta es sencilla: Si los clientes compran tu producto/servicio.
WHAT IS THE "VALUE PROPOSITION CANVAS" BASED ON?
It is based as we have mentioned on matching the needs of your customer segment with your value proposition, and to understand how it works the first thing to know is that we are going to work in four distinct phases:
Phase 1: OBSERVATION
At this stage, we need to understand the real needs of the client, y para ello no nos sirven ni estudios de mercado ni herramientas similares. Pueden ser actividades de la vida diaria laboral o personal. Identificar las actividades o tareas básicas de nuestros clientes. El objetivo es find a problem or need to be solved, para obtener una lista bastante prometedora de lo que, tras observar a los clientes, nosotros creemos que son sus principales necesidades. Detecta las frustraciones o emociones negativas antes, durante o después. Analiza los beneficios y lo que va a recibir el cliente por usar, comprar, alquilar, etc. nuestros producto o servicio.
Phase 2: DESIGN
Instead of doing what we always do, which is to design first and then see who can use it, this time we will work the other way around: first we identify a problem worth solving, and then we will see how we solve it.
Phase 3: VALIDATE
Up to this point what we have achieved is to identify mainly two things: customer hypotheses and value hypotheses. Once the hypotheses have been identified, it is time to check (validate) in the real world whether what we have imagined is true, i.e. it is time to convert the hypotheses into certainties. The way to do this is going out on the street and talking to the customer validando o descartando las hipótesis de cliente que hemos creado. Debemos build a minimum viable product (or service), take it to market to a specific group of customers and see how they react to our value proposition.
- Client hypothesis: What we think the client needs. The problem we think he wants to solve.
- Value assumptions: what we believe will solve the client's problem or need.
Phase 4: ADJUST
The next step, based on the findings of the validation process with the client, will be to readjusting our value proposition. En esta fase de ajuste se replanteará la hipótesis de valor en función de lo aprendido con el cliente real. En esta fase y con lo aprendido del cliente procederemos a la construcción del primer prototipo del producto, del producto mínimo viable que nos ayudará a validar y a ajustar nuestra propuesta de valor.
In formulating our value proposition, we must be able to respond clearly:
- ¿What estamos creando?
- ¿Para quién? Customer segment.
- ¿Qué soluciona? Problem, need.
- ¿Why te van a elegir y no al resto? Differentiation from the competition. Si la propuesta no te diferencia tendrás que ser el más barato. Si ofrecemos lo mismo que todos (si no nos diferenciamos); ¿Por qué un cliente va a comprar si nuestros precios no son los más bajos del mercado?
- What benefits aportamos?
Features of the proposition that bring benefits and value to the segment:
PERSONALISATION
- Complete adaptation of our products or services to the specific needs of a customer segment.
- The solution can be tailored to meet the particular tastes or needs of each client.
FUNCTIONAL DESIGN / USABILITY
- Making things easier or more practical can also be a source of value.
PRICE (BASIC PROPOSAL)
- Offering similar value at a lower price is a practice that can have important implications for all other aspects of your business model.
- Offer the same solution at a lower price than the competition.
COST REDUCTION
- It consists of helping your clients to reduce their costs by using your product/service.
- The proposal is to optimise expenses in order to minimise the total cost in production processes or other businesses.
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- New atif the proposal addresses problems or needs that had not yet been identified.
- Qualitywhen the qualities of our products or services are better than those of our competitors.
- Convenience: facilitating clients' activities and minimising efforts.
- Brand / Statuswhen you want to establish a fashion or trend in the customer segment.
- PerformanceThe proposed solution fulfils its purpose in a superior way or with higher performance than that offered by other solutions.
- Risk reductionby adopting our solution, the customer will have a lower risk than with the competition. For example: financial, social or environmental.
- DesignThe artistic characteristics of the solution are what mainly define the proposal.
What makes a good value proposition?
A good value proposition is not just about the product or service itself. The value proposition is not only the description of the product or the attributes of your service, differentiating it from the commercial offer, it is value provided to the customer...
LA PROPUESTA DE VALOR ES UN TODO QUE DEBE CONTEMPLAR TAMBIÉN:
- After-sales service for products and services.
- Post-training consultancy or delivery of a report.
- Free delivery / immediate delivery especially in the case of products.
- Free maintenance (e.g. a website).
- 24/7 customer service.
I think it is becoming clearer that the concept of value proposition and why we often talk about unique value proposition (UVP).
THE EXAMPLE OF AMAZON:
An example of added value which offers Amazon as well as selling books and other products in its online shop:
- Protects publishers and authors of fraudulent sales through online channels (PUV on the supply side).
- It offers a review and rating system of the products offered in the online shop (PUV on the demand side).
What a value proposition is NOT:
- No is a slogan commercial or advertising.
- No are the visionThe company's mission and values.
The mistake we have all made is ever thinking, dreaming or designing a product or service without having looked at the needs or problems of consumers (actual or potential). REMEMBER: fall in love with the solution to your customer's problems, don't fall in love with your product (a typical mistake of very technical entrepreneurs).
Eliminate problems...
The value proposition should solving a problem for our customers potentials. This is what Blank calls Pain Killerssomething like "pain reducers"...
NUESTRA PROPUESTA DE VALOR DEBE:
- Reducing the cost of money, time or effort to perform a task.
- Make the customer feel better.
- Correct or improve tools which do not work well at present.
- To solve everyday problems.
- Facilitate things.
- Enhance prestige, trust or status of our clients.
- Reduce risk: social, technological or financial.
A value proposition containing any of these benefits, will make customers buy from us or at least rate us above the competition when it comes to make the decision to buy.
MEETING A NEED
A product or service may not solve a problem but rather to satisfy a need.
Two clear examples of satisfying a need are:
- Instagram. Before it was created, did we really have a problem sharing our photos with our friends and the rest of the world? If your answer is NO, it's because Instagram satisfies the basic and instinctive human need to communicate, only it does it with digital technology and in a global way.
- iPhone. Si el iPhone sólo hubiera resuelto la necesidad de comunicación no hubiera sido lo que es hoy, ya que a la época de su lanzamiento existían teléfonos móviles en el mercado. La verdadera revolución del iPhone se centró en satisfacer nuestra necesidad de entretenimiento e información. Una verdadera computadora de bolsillo que nos permite tener una navegador (browser) + juegos, músicas, y de paso nos comunica; al igual que cualquier otro teléfono. Hoy en día cubre nuestras necesidades de estatus ya que el resto de los dispositivos han imitado sus funcionalidades.
FEATURES OF A UNIQUE PROPOSAL OF ATTRACTIVE VLAOR:
- It is the core and fundamental pillar of a well thought out and executed business model.
- It focuses on solving problems or meeting needs of customers.
- It focuses on what the client wants and not on what we want.
- This is a unique feature that our competition cannot imitate.
- It acts as a barrier to entry because it is difficult to copy.
- It is not just about offering a feature in a product, but focuses on issues such as emotional and social of customers.
VALIDAR LA PROPUESTA DE VALOR:
It is a matter of adjusting the value proposition based on the product and customer fit. After all, everything we have so far is hypothetical, they are only ideas until they are validated with our client:
- Client hypothesis: what we believe The problem we think the client needs. The problem we think he wants to solve. We have to discover the real problem or the real need he has!
- Value assumptions: what we believe that will solve the customer's problem or need.
During validation, we pivot the proposal (adapting, adjusting, improving) until it provides enough value for the client to be satisfied and willing to pay.
HOW TO VALIDATE A VALUE PROPOSITION?
In the methodology lean we are following, the only way to validate a value proposition is by "getting out of the office and talk directly to the people in the customer segment. And this is something we as entrepreneurs have to do, it is not delegable! We must build a producto mínimo viable PMV (+), to take it to the market for a specific group of customers and see how they react to our value proposition, i.e., how they react to our value proposition, do experiments. Todos los changes that customers perceive as necessary deben ser evaluados por nosotros para incluirlos en la nueva propuesta de valor revisada y corregida. Todas las characteristics not perceived as value-adding The Lean methodology treats them as merely a waste of time or money in the production process, and the customer's feedback will be eliminated from our product or service if they generate a waste of time or money during production. Lean methodology treats them as mere waste (of time, money or effort).
Ejemplos de Propuestas de Valor
PARA EXPLICARTE CÓMO IMPLEMENTAR UNA PROPUESTA DE VALOR EN LA VIDA REAL, USAREMOS ALGUNOS EJEMPLOS DE EMPRESAS RECONOCIDAS:
STARBUCKS
La propuesta de valor del gigante del café recrea una experiencia alrededor del café y cómo se relaciona con la vida del consumidor. Los tres aspectos más importantes de la propuesta de valor son:
- El café: dominan las diferentes etapas de la cadena de suministro, como el cultivo, el proceso de tostado y la logística de distribución.
- El ambiente: cafeterías confortables, ambiente relajado, música suave y conexión a Internet vía WiFi.
- El servicio: ofrece un trato personalizado e íntimo con los clientes.
Starbucks ofrece una experiencia alrededor del café, la han potenciado y se han convertido en líderes mundiales de su sector. La compañía ha invertido mucho dinero y esfuerzo para que la propuesta de valor penetre en la mente del consumidor.
Aquí tienes el modelo de negocio de Starbucks (+) al detalle.
SODA STREAM
Es una compañía que vende una máquina para preparar gaseosas en casa. Su propuesta de valor se basa en:
- Tienes una máquina de gaseosas en casa.
- Preparar gaseosas es fácil y divertido. Cualquier integrante de la familia puede preparar su propia bebida. En la imagen promocional aparecen cuatro miembros de la familia (padres y dos hijos).
- La máquina es ecológica y bondadosa con el medio ambiente. La compañía asegura que ayuda a ahorrar 2.000 botellas cada año.
- Ofrecen botellas coloridas diseñadas para los niños.
Soda Stream ha logrado diferenciarse claramente de las compañías de gaseosas tradicionales como CocaCola y Pepsi. El anuncio es muy original y divertido, ya que las botellas de la competencia explotan cuando se usa la máquina de gaseosas.
La aplicación para compartir fotos y vídeos explica la propuesta de valor en su página web. En un breve párrafo describen todo lo que ofrecen y los beneficios que recibirá el usuario. Es un excelente ejemplo de cómo transmitir una propuesta de valor en un breve párrafo.
Los puntos más importantes para destacar en la web de Instagram son:
- El título muestra el valor que ofrece la app.
- El texto explica cómo funciona la app, incluyendo las funciones para agregar filtros a las fotos y vídeos.
- La imagen del móvil potencia el texto promocional.
ZARA
Al ser una marca mundialmente conocida, Zara no tiene la necesidad de publicar su propuesta de valor. De hecho, en la página de Zara no aparece la propuesta, sino que el sitio se dedica a exhibir la sobriedad de la marca y sus diseños atractivos. El enfoque de la propuesta de valor es ofrecer ropa de excelente calidad a precios asequibles. Su concepto se basa en absorber las tendencias del mercado y lanzar nuevos diseños con mucha frecuencia.
Aquí tienes al detalle el modelo de negocio de Zara (+).
APPLY THIS TIP TO YOUR PROJECT
TASK
Now that you have learned about the Value Proposition - CANVAS, you should know how to answer these questions:
- What is your value proposition to each customer segment?
- How is the solution you have designed to meet the needs or problems of your customer segment?
- What benefits do they bring to your customers?
- What tests, trials or validations have you carried out with real customers to be sure they are willing to pay for your solution?
We encourage you to do the exercise of answering them!
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[...] are: a low-risk and high-potential alternative to sell and above all to confirm that our value proposition has a market. With prudence and strategy I recommend that you [...]
[Value proposition: [...] 2.]
[...] value perceived by the customer is achieved through the key activities that make up the value proposition and that we have designed in our model to cover their needs or solve their problems.
[...] revisions of the hypotheses captured on the canvas, the perfect fit between a value proposition and the customer segments is achieved [...].
[...] You must identify the type of product you want to sell or produce abroad. In particular, you must analyse and identify if the product needs to undergo some modifications, in order to adapt to the characteristics of the market (or markets) in which you are going to sell it (see this tip on value propositions) [...].
[...] offers from the competition... you have to be permanently in touch to adjust your value proposition, continuously measure your [...]
Very well summarised and helpful tip
Keys to success for the development of a project, a clear definition of a PROBLEM, in order to propose a SOLUTION that ADDS VALUE and customer satisfaction, if so, the COMPANY that derives such a solution will be a SUCCESSFUL COMPANY.