What is Value Proposition
What is the value proposition? What are its uses in our business? Value proposition is not the consumption of the viewer, but the consumption of the business owner. Value propositions are not slogans, not advertisements.
Value proposition is what benefits can meet customer expectations from your product or service. How does your product help customers work, meet customer expectations and reduce their suffering.
If there is a gain in the customer segment, or customer expectations, in the value proposition there is the term gain creator: how your product or service creates benefits for consumers. Your products and services are indeed trying to satisfy the gain.
In the customer segment there is pain, or things that hurt them, or things they fear, in value prepositions, there are pain relievers: how your product or service reduces customer pain.
Value propositions are made at the beginning after the target market is determined. The target market is drawn first, their hopes, the things they want to do, and their fears. Only then will we formulate our products and services. Our products and services are the answer to the work they need to do and they need their help, their hopes, and the pain or frustration they are experiencing.
So actually in running and growing a business, the easiest is to first determine who your customers are, who will buy your product.
In the canvas business model, value propositions in the canvas business are the two most important blocks, along with the customer segment. Other supporters. Promotion is supportive. Supporting production. These resources are supporting. The profit and loss of supporters.
The obvious is what are the benefits to my customers if I use my product or service and what will happen to my customers if they don’t use my product or service.
Who will gain or avoid pain? The customer segment that we specify. For example I made a special fishing rod bag for squid anglers. So I focus on my target customers. Then I determine the gain and pain. Which ultimately determines the design of the bag that I made. Size, color, strength, water resistance, need a cellphone, a place for fish bait.
Humans are motivated to buy because of two things usually. Want to get gain and stay away from pain. For example Example. Women buy cosmetics. The other is hoping that she will be beautiful and attractive. And stay away from pain, which means look unattractive if you don’t use cosmetics.
So what about your product? From the customer side, the gain is that they want to get the benefits of your product. And they avoid things they don’t expect. Your job as a product or service owner is to match the values you have with your target market profile.
This means that if your product has the gain expected by consumers and your product is able to keep away the pain that your target market wants to avoid. Then there is compatibility. Transactions more easily occur.