Value Proposition & Customer's Segments
Define your segment and your value proposition using a whiteboard.
- Steps
- 8
- Last edited
- Jul 20, 2023
- Created by
- Nova
About this process
A great tool to understand your customers, including their pains and gains, and understand how your customer perceives your offer. Ideal to start analyzing an idea or business strategy and develop your value proposition. This tool is an alternative version of the Value proposition Canvas. This version is an extended version of the original Value proposition canvas and follows a format similar to the business canvas.
The process in detail
8 steps- 1
Define your segment groups.
- 2
Consider connections between groups.
- 3
Job-to-be-done.
- 4
Pains.
- 5
Gains.
- 6
Product and service features.
- 7
Pain relievers and gain creators
- 8
Your value proposition
Read the full text
1. Define your segment groups.
Have a discussion with your team about who the customers are and the different segment groups. Use the sticky board to place your segments in each "groups" column of the template. Just below, describe each group in detail. The more details you have, the better you know your segments. Ask yourself: What is their age, gender, ethnicity, class, social status, geography, beliefs, habits? TIP: Use a specific color for each segment identified
2. Consider connections between groups.
Use this step to consider the segment groups you've identified. Did you find you have different customer segments? Who? Why do they all need your product or solution? Take note of how you would communicate with each group, as well as common interests and behaviors. What do they have in common? What's different? Tip; this discussion could be useful for future marketing or communication strategies by simplifying the method of outreach. Continue the conversation until you are satisfied.
3. Job-to-be-done.
Once you’ve segmented your customer, use the sticky notes board, and add detail/specifics about your customer segments like the Job-to-be-done. Job-to-be-done:** These are simply the jobs your customer needs to perform each day. Think about the functional, social, and emotional tasks customers are trying to perform, problems they are trying to solve, and needs they wish to satisfy. Ask yourself - What social, emotional, cognitive, and functional jobs do your customer do daily? Why?
4. Pains.
Think about the negative experiences, feelings, and risks that the customer experiences while trying to get the job done. What is annoying (troubling) your customers? What negative emotions do they experience?
5. Gains.
What benefits would the customer expect? What would they need? What would delight customers? What things may increase the likelihood of adopting a value proposition? What would make your customer happy?
6. Product and service features.
Having explored our customer's motivations, pains, and gains, we can describe our Product and Service Features. Start with the product and service section: The products and services create gain and relieve pain and create value for the customer. Here is where you’re literally selling – like when mattress companies talk about their materials and extended warranties.
7. Pain relievers and gain creators
So what? Why do these features mean anything? Why are those features important? Pain Relievers: Remove current frustration and an exact description of how the product or service alleviates customer pains. Gain Creators: Offer them something new (added value). For example: "Comfortable, socially conscious, I get additional resources for free, etc."
8. Your value proposition
A value proposition is the promises the company wants to deliver to customers. Often indicates why the customer chooses to buy their product.
A value proposition is part of a company's marketing strategy.
The value proposition includes a statement that introduces a company's brand to its users by telling them what the company stands for, how it operates, and why it deserves their trust.
Value proposition statement template:
Type of value:
- 01
- Customer/User Segments
- Optional
- Thoughts
- What are they thinking when they think about the problem? Why?
- Group Description 1 could use yellow sticky notes.
- Group Description 2 could use orange sticky notes.
- Optional
- Optional
- Needs
- Actions
- Provide a short description of their needs.
- What actions or current trends make you think they are having a problem or thinking differently?
- 02
- Value proposition framework
- Customer Job (or goal)
- Gains
- Pains
- What are they trying to get done(achieve)? Try to be specific and provide information about the specific context like: While cooking dinner and taking care of the kids our customer wants to...
- What would make your customer happy? What do your customers dream about? Why? What would make their days/life better/easier? Describe the benefits, desires your customer expects. This will include positive emotions and savings or additional utilities.
- What's annoying your customers? What is preventing them from getting the job done? What's keeping them up all night? What are their emotions? Describe the negative emotions and unwanted situation as well as any risks that your customer is experiencing or will experience before, during or after getting the job done.
- Utterly horrible or Excruciating
- Distressing or Intense
- Discomforting but tolerable
- No pain or very mild
- Product/Service/Solution
- Gain Creator
- Pain Relievers
- List all the services/products/idea that are build based on your value proposition and is helping your customer get the job done
- How is your Product/Service/Idea creating benefits and a good experience for your customer? How do you outperform the current solution? How can make them adopt your solution? What can you offer to help them achieve their "gain"?
- What problem do you eradicate (or decrease) ? How do you eliminate risks or fear? How can your product/Service/Idea can reduce negative emotions and experiences?
- What needs to be true?
- How can we measure it?
- Within which scope?
- Identify what needs to be true for your strategy to be true. Ask the question if there are any critical unknowns that needs to be investigated.
- If you don't measure your strategy you won't be able to hold it accountable or improve it.
- In which specific context or situation will the customer or user see the benefit?
- Value Proposition
- What is your Value Proposition?
- Our [product/service] helps [customer/target market] who want to [job to be done] by [ reducing, increasing, avoiding..] + [customer pain] and [increasing, enabling, improving...] + [customer gain] unlike [competitors]
- For [ our target market] who [ need/opportunity] our [product/service] is [product category] that [benefit] [how fast?]