Once you define your customer segments, the next critical step in your planning is defining your value proposition. In the standard business model canvas, this occupies the center box for a reason. It acts as the bridge between who your buyers are and how your business functions operational-wise.
If you are working through "each of the 9 boxes" in a business model canvas, the Value Propositions block is where you articulate why a customer will choose your company over a competitor. It is the core reason your business exists.
What is a Value Proposition?
A value proposition is the bundle of products or services that create value for a specific customer segment. It solves a customer problem or satisfies a customer need.
When reviewing different examples of business model canvas layouts, you will notice that value propositions do not just list features. Instead, they focus on the specific mix of values that cater to that segment's requirements.
Value can be quantitative (like price or speed of service) or qualitative (like design or user experience). Here are a few common ways a sample business model canvas details value creation:
- Newness: Satisfying an entirely new set of needs that customers didn't previously perceive (like early cell phones).
- Performance: Improving product or service performance to give users better output.
- Customization: Tailoring products or services to the specific needs of individual customer segments.
- Price: Offering similar value at a lower cost to attract price-sensitive buyers.
- Usability: Making things more convenient or easier to use to save customers time and frustration.
Questions to Ask When Filling Out This Box
To clarify your offering on your template for business model canvas, review these questions with your team:
- What value do we deliver to the customer?
- Which one of our customer’s problems are we helping to solve?
- Which customer needs are we satisfying?
- What bundles of products and services are we offering to each customer segment?
Use a Ready-Made Layout for Your Strategy
Getting your business planning right requires a clean, organized framework. To make this process straightforward, you can use a professional business model canvas template.
Our strategy download pack includes a clean business model canvas Word file built with easy-to-use, adjustable text boxes so you can write down your value statements directly. The pack also includes clean business model canvas PowerPoint slides for team alignment and print-ready business model canvas PDF files. It serves as an intuitive business model canvas creator to keep your strategy structured on a single page.
Next Steps: Reaching Your Customers
Now that you know what value you offer your audience, you need to decide how to deliver that value. In our next article, we will move to the third box: Channels.
Helpful Resources & Video Guide
Download the Toolkit: Grab your editable Word, PowerPoint, and printable PDF files on our official Business Model Canvas Template Landing Page.
Watch the Video Guide: See Brent break down the entire framework step-by-step on YouTube.
Read the Introduction: Review how all nine blocks connect in our business model canvas template: Overview Guide.
Read the Previous Article: Learn how to profile your audience in our business model canvas template: Customer Segments Guide.
Next Article: business model canvas template: Channels Guide