3 – Value Propositions
A look at the business model from the product manager's point of view
CANVAS 13 - Great guide on the business model, from the product manager's point of view
1 – Customer Problem
2 – Customer Segments
You are here ➔ 3 – Value Propositions
Value Proposition Formulation Map
4 – Customer Relationships
5 – Channels
6 – Revenue Streams
7 – Key Activities
8 – Key Resources
9 – Key Partners
10 – Cost Structure
11 – Eco-Social Costs
12 – Eco-Social Benefits
13 – KPI (Key Performance Indicators)
2 – Value Proposition
I already have an article on this topic. It is short and contains a simple but complete formula for formulating a value proposition.
The value proposition is what makes a product or service attractive to buyers. It can be a unique feature that distinguishes the product from competitors, or a solution to a problem that customers face.
<aside> 🚦 It is important to remember that the product itself or the technology used is not the value proposition. The value lies in what the product or service can do for the customer.
</aside>
For example, services can offer a high level of commitment and individual focus, paying attention to the business and the customer's needs.
This can be a resource, an information site, a virtual assistant, or an application to increase productivity. It can be accessible, structured, regularly updated, and include a step-by-step plan for individual work. This resource or tool should be convenient, functional, and have community support, and all this, for example, for a small monthly fee. It's like a Swiss Army knife: a tool capable of performing many tasks.
Examples of factors that influence customer decision-making
Functional Aspects
- Performance: How effective is the product or service in fulfilling its main function?
- Tasks performed: What specific tasks or problems does the product or service solve for the customer?
- Customization: To what extent can the product or service be adapted to the individual needs of the customer?
- Accessibility: How easy is it for the customer to access the product or service?
- Functional design: How comfortable is it to use the product or service? How good is its design from a usability standpoint?
- Price: Does the price of the product or service correspond to its quality and functionality?
- Cost reduction: Does the product or service help the customer save money?
Emotional Aspects
- Risk reduction: How does the product or service help the customer minimize potential risks (financial, time, emotional, etc.)?
- Aesthetic design: How visually appealing is the product or service? How pleasant is it to the customer's eye?
- Emotional state: How does the product or service affect the customer's emotional state? Does it bring joy, satisfaction, or reduce stress levels?
Social Aspects
- Brand: How do brand awareness and reputation affect the attractiveness of the product or service?
- Status: Does the use of the product or service help the customer increase their social status or improve their image?
- Communication: Does the product or service provide opportunities for communication or social interaction?
- Fashion: Is the product or service in line with the latest fashion trends?
- Novelty: Is the product or service new and innovative in the market?
