Value Proposition Design

What is Value Proposition Design?

Value Proposition Design is a visual tool, a template that consists of two sides — the value map (left-hand side below) and the customer profile (right-hand side). Using this tool, you can identify how your products and services provide gains and ‘pain relief’ for your customers.

Start on the right-hand side, by listing all the customer needs (including the problems they're trying to solve and the duties they perform) under the customer job(s). In customer pains, list the things that make it difficult for your customer to get their ‘jobs’ done. Finally, in customer gains jot down all the customer’s benefits and desires.

Then on the left-hand side, list all the products and services on which your value proposition is built. In the pain relievers section, write down all the ways your products and services address the customer’s pains. And finally, write in how your products/services create customer gains.

This map/template also forms part of your Business Model Canvas — once you’ve designed and/or refined your customer value propositions, you can plug these into your Business Model Canvas.

How can you benefit?

Value Proposition Design can be used to help you create new value propositions or improve existing ones. It’s a great way to nail down your value proposition, see any gaps and ensure you’re delivering true value to your customers.

In terms of digital projects, Value Proposition Design can help deliver user-centric projects, and helps you create value for your customers and prospects. For government agencies, Value Proposition Design has the added benefit of ensuring a digital project adheres to the DTA’s Digital Service Standard, particularly Number 1: Understand user needs and Number 3: Agile and user-centred process.

In action

When Salsa Digital was redesigning the Australian Radiation Protection and Nuclear Safety Agency (ARPANSA) website, we discussed the highly technical nature of their work and the need to simplify their value proposition. Salsa Digital worked with ARPANSAto formulate a value proposition that’s easy to understand.

The outcome was this:

ARPANSA provides radiation protection services and information to help the public and industry to reduce the risk of harm from radiation with expert knowledge, advice,regulation, and international best practices.

More info

If you want to find out more about Value Proposition Design, I recommend these links:

• Strategyzer Value Proposition Design Book

• Strategyzer Value Proposition Design YouTube Explanation

  (a pretty good way to get up to speed in four and a half minutes!)

Value Proposition Design is a great tool to map your products and services againsts clients and is especially powerful when used in conjunction with the Business Model Canvas. Happy mapping.

Design Thinking blog series

Reaping the rewards of Design Thinking (#1)

Business Model Canvasses (#2)

User Research (#3)

Empathy Maps (#4)