Value Proposition Framework
A value proposition framework (also called a value proposition canvas) puts customer insight into relevant business operational terms, making it easier to make decisions and develop action plans.
Value proposition design focuses explicitly on customer needs, delivering concrete products and services people buy. At the most basic level, a the framework defines how to win by linking three things—customer needs, benefits sought, and assets and capabilities. When all three parts align, the organization creates and captures value. Let’s take a closer look at each part.
There are three parts to consider in designing a strong proposition :
- Customer Situation: Actionable insights related to the target situation today and in the future
- Value Planks: The set of enduring customer or brand benefit “planks” that fulfill customer needs
- Value Elements: Operational elements required to deliver against desired benefits
Breaking it down, the customer need/situation describes the base-level needs of the target audience. What does your target customer desire? You can obtain customer clarity through a variety of research methods, including in-depth interviews, ethnographic studies, and data analytics.
Value planks, the middle column, define key benefits delivered to the target customer. These can be functional, emotional, or self-expressive benefits, or expressed as jobs to be done.
The final column describes operational components used to deliver on customer needs and benefits sought. This consists of individual value elements—capabilities, competencies, and other assets the organization can provide.
Individual value elements combine to create value planks, which in turn form the total proposition.
To unlock growth, a company can improve existing propositions or create entirely new ones. In some cases, value can be created by combining existing value elements in new ways.