Value Proposition Design: How to Create Products and Services Customers Want

MoneyBestPal Team

The Value Proposition Canvas is a tool that helps entrepreneurs and innovators build products and services that meet the needs and preferences of their customers. 

Alexander Osterwalder's book Value Proposition Design: How to Create Products and Services Customers Want describes how to utilize it.

The publication is a follow-up to the international best-seller Business Model Generation, which debuted the Business Model Canvas as a tool for developing and evaluating business models.

The Value Proposition Canvas consists of two parts: the customer profile and the value map. The customer profile outlines the client group in terms of their jobs, challenges, and benefits. Jobs are the tasks, issues, or requirements that clients desire to complete, address, or satisfy. 
Pains are the unfavorable results, hazards, or challenges that clients encounter or dread in connection with their work. Gains are the favorable outcomes, advantages, or goals that clients anticipate or desire from their work.

The product or service is described in terms of its features, pain relievers, and gain generators in the value map. Features are the qualities or capabilities of a good or service. The methods by which the good or service lessens or gets rid of the customer's pains are known as pain relievers. Gain creators are the strategies used by a product or service to provide or improve customer gains.

The objective of value proposition design is to achieve a fit between the customer profile and the value map, which means that the product or service must solve the most significant tasks, problems, and gains of the target market. In order to find a fit, the book recommends following a four-step process: canvas, design, test, and evolve.


In this step, the customer profile and value map are outlined using the Value Proposition Canvas based on presumptions and hypotheses. The canvas makes the value proposition easier to understand and express in a clear and succinct manner.


To create and assess distinct value propositions based on the canvas, this step entails the use of a variety of tools and approaches. In the book, tools including ideation, prototyping, storytelling, co-creation, and prioritization are illustrated.


In this step, the value propositions' underlying hypotheses are either confirmed or refuted using experiments and data. The book offers examples of several types of experiments, including surveys, landing pages, A/B testing, and analytics.


Utilizing feedback and learning from iterations, the value propositions are improved in this step until fit is achieved or a pivot is required. Examples of several tools are given in the book, including learning cards, validation boards, innovation measurements, and innovation accounting.

The book has vivid graphics, diagrams, examples, and case studies along with an engaging and visual writing style. The book also provides users with access to an online resource on, where they can get more tools, templates, videos, and community assistance.

The book is written for business owners, inventors, designers, marketers, managers, and students who aspire to provide goods and services that consumers demand. Anyone interested in learning more about the ideas and techniques behind value proposition design, business model generation, lean startup, design thinking, and customer development might find this book helpful.


The main purpose of the VPD process is to help organizations align their products or services with the needs and desires of their customers. It's a tool for understanding what customers value and creating products or services that meet those values.

The Value Proposition Canvas works by mapping out the customer profile (gains, pains, and customer jobs) and the value map (gain creators, pain relievers, and products & services). The goal is to match the two sides to create a strong value proposition.

One example is Airbnb, which used VPD to understand the needs of people looking for affordable and unique travel accommodations, and then created a platform that matched those needs.

Some common mistakes include not spending enough time researching and understanding the customer, not iterating and refining the value proposition based on feedback, and not aligning the value proposition with the overall business model.

VPD is often used in conjunction with the Business Model Canvas. While the Business Model Canvas provides an overview of how a company creates, delivers, and captures value, VPD goes deeper into how a company's products or services create value for specific customer segments.

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