Business Model Canvas Model – Creating a Value Proposal
Have you heard of the canvas model or how to create your value proposition based on it? With this reading you can learn how to put it into practice.
It is an administrative model that helps companies develop solutions according to the demand of their audience. It means that when this is well developed and regulated by the corporation, the canvas of the value proposal focus on creating and marketing the services and products that customers really want.
In this article you will learn a little more about the advantages of betting on canvas – and how to build the ideal model for your company.
What will you read in this article?
Business Model Canvas: the study that gave rise to the canvas of the value proposal
To understand what the value proposition canvas is, it is necessary to know the study that gave rise to it. It is known as Business Model Canvas.
This study is divided into nine blocks that exemplify how the ideal business model works. It works as a step by step procedure that suggests entrepreneurs what they should do when creating or restructuring their company. The blocks that make up the business model canvas are:
- Customer segment;
- Value offer;
- Sources of income;
- Key resources;
- Key activities;
- Key partnerships;
- Cost structure.
From this study, the value proposition Canvas was created. This is a detail of two blocks of the business model box: the “value proposal” and the “customer segments”.
How did the Canvas come up with a value proposition?
This study format helps the company to better understand its clients. By joining the “value proposition” and “customer segments” blocks, the value proposition canvas responds to the two main themes proposed by these blocks, which are:
- What does the company create/do/market?
- For whom does the company create/make/market?
Being such important questions, they were separated from the rest of the blocks and won a specific study about them – the Canvas of value proposition.
When the company must develop and use the Canvas?
The study must be done at the moment when the business idea stops being an idea and becomes a real business. It can also be used in a company that already acts in the market but wants to better understand its customers. It will focus on making the production more efficient, meeting their needs and, consequently, increasing the performance.
It is worth remembering that canvas model is extremely useful for companies of all areas and sizes.
The main advantage of investing in this study format is to develop the services and products according to the desire/need of the public. Thus, the company saves time, money and resources. It also goes on to understand what its current failures are and what can be improved in its future performance.
How to develop the Canvas value proposal?
The tool has two distinct sides: the client side and the value map side. The company must unite them and make them stay in harmony. Why?
At this point the profile of your client is evaluated. What are your tasks or problems and what are your earnings regarding this?
- Tasks: What do clients do, or they need to do in their daily life – both at work and in their personal lives? What needs are you wanting to supply? What are your activities?
- Problems: What bothers the client? What do you want to solve? Is the problem to be solved financially or emotionally?
- Gains: What are the objectives/results that the client wants for his life? Which ones can you solve with your products/services? How long can you help your client?
Value map block
This block is also divided into three large parts, they are:
- Products and services: What will your company offer to customers? What are your differentials? What is the frequency in which the client will use your service/product?
- Analgesics/Pain relief: What problems will your service/product solve for those who consume it? Will it reduce your client’s costs? Is it a good cost-benefit for him?
- Profit Makers: What are the benefits that customers will have when consuming your services/products? Can you exceed the expectations of your audience?
Having these data at hand, the company has a detailed overview of how your value proposition will transform the life of your client.
After investigating, it’s time to get to work and move from paper to reality
A good study is essential for a company to succeed in the market. But this alone, doesn’t guarantee anything. Because a company that thrives needs innumerable factors to achieve its goals.
A business needs to be economically viable, with viable sources of income, with ability to adapt to a reality that changes frequently and of course, to have loyal customers.
One suggestion is to go beyond the Canvas of value proposition and reproduce the entire study of the business model canvas in a more detailed way to help the entrepreneur understand the entire market, its customers, the alliances more effectively as well as investing more.
Has your company ever produced a value proposition canvas?
This material is extremely important to get to know your audience better and deliver more appropriate solutions to it. Yes, it requires a great and specific research, but it is of great value to the company.
This is because the company can be wonderful and offer products or services of great quality. But this is of no use if there is not a public interested in consuming what is offered.
Now that you understand a little more about this study, you can start producing your company canvas.
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