Value proposition is a marketing strategy. It refers to the value a company promises to deliver to its customers if they choose to buy their product or service. This strategy aims to convince customers about why they should choose your product or service. Many powerful companies have already established trust and familiarity with the customers, but if you and your product are new to the market, you have to prove yourself to the customers with an effective value proposition, which requires a detailed market research to understand what customers are looking for.
Why Is Value Proposition Important?
First of all, it builds trust with customers. It is a crucial step for inventors and designers after the R&D and research process. If you have recently developed a product, you have to convince customers that they should buy your product rather than a similar product of your competitors. Furthermore, the values that you set will be the core values that lead your startup to grow. These values that you promise to your customers will make your startup more powerful. Also, “a strong value proposition is the foundation of great design”1. Since crafting a powerful value proposition requires you to understand the expectations of the customers, this market research process can also help you to improve your design in a way that will make the customers happier.
Value Proposition Design Tools
In order to make this marketing process easier and effective, entrepreneurs like Alexander Osterwalder and Steve Blank have developed useful design tools. One of these tools is the Value Proposition Canvas that was initially developed by Osterwalder. This canvas is built around two blocks: Customer Profile and Value Map2. Customer profile considers functional, emotional, and social tasks customers are trying to perform along with the negative experiences during the task. In addition to these aspects, the designer must also consider the benefits that a consumer needs.
Then, the value map focuses on addressing these customer profiles. The value map should consider the benefits of the product for the customers. It also should focus on how the product will alleviate customer pain during the task. Thus, this map explains how product design fits customers’ needs. (In order to read a more detailed explanation of this Canvas you can read source 2)
You can read a more detailed article about academic research via this link.