VALUE

PROPOSITION
tool description &
worksheet
Version 1.0

Helps identify and assess It forces you to look at

the benefits you are your product or service
offering customers and from a customer
how well your product standpoint so you can
meets their needs, wants ensure that it matches
and expectations. Clearly their needs, wants and
answers the questions: expectations. This helps
‘What exactly are we you create effective
offering customers? Why marketing messages,
is it valuable to them?’ align your team’s
perception and
communication of the
product or service, and
convince investors of its
potential.
 Value Proposition / tool / version 1.0 / page 1

The worksheet consists of 6 blocks of questions. Use the first two to describe your target
customers and competition. Then use the last four to create a number of value propositions. Try
to get at least 5 value propositions. Then select 2 or 3 promising ones with the group.

CUSTOMER: WHO ARE THE KEY BENEFICIARIES

OF YOUR VALUE PROPOSITION?
For whom would your product or service be the first choice? Describe your
customer in terms of their attitude towards the product category, and their
behavior, values or situation, (for example: include gender, occupation, income,
place of residence, education, household size and/or composition).

COMPETITION: WHO MAY BE OFFERING A

SIMILAR VALUE PROPOSITION?
Which alternative solutions are available on the market? Describe your direct
competition (others with a similar product or service), indirect competition (others
that fulfill the same function), or ‘share of wallet’ competition (different products
that can use up the money that would be spent on yours).

PROBLEM: WHAT IS THE PROBLEM YOUR ARE

SOLVING FOR YOUR CUSTOMERS?
Which need or expectation does the product or service fulfill for your
customers? Are you helping them to:
• Satisfy a new set of needs?
• Improve the performance of a product or service?
• Afford something they now can’t?
• In some other way?

BENEFITS: WHAT DO YOUR CUSTOMERS GAIN,

AND WHAT MAKES THEM HAPPY?
How does your product or service solve the ‘problem’ of your customers?
Descibe the functional benefit (what the product does) and emotional benefit
(how the end-users feel, what it means to them). What is the core idea that links
these two kinds of benefits?
 Value Proposition / tool / version 1.0 / page 2

REASONS TO BELIEVE: WHAT IS THE

EVIDENCE THAT YOUR PRODUCT DELIVERS
THESE BENEFITS?
Explain which benefit or need convinces customers of superior value. Does it
save money or time? Outperform existing solutions? Make their job or life
easier? Affect their reputations? Reduce fears? Limit negative social
consequences? Make them feel better?

KEY STATEMENT: WHAT MAKES YOUR VALUE

PROPOSITION THE MOST ATTRACTIVE FOR
YOUR CUSTOMERS?
What is the most compelling reason for your customers to choose you above the
competition? Describe which benefit or need convinces customers of superior
value. Does it save money or time? Outperform existing solutions? Make their job
or life easier? Affect their reputations? Reduce fears? Limit negative social
consequences? Make them feel better? Does it make the world a better place?
Condense this into a single statement that conveys the essence of the benefit.
 Value Proposition / tool / version 1.0 / page 3

Build your pitch using the following formula:

For… [ideal customer or investor] who [has this specific pain or problem] our [product name] is a [product category] that
provides [this main benefit and reason to buy]. Unlike [the primary alternative or competitor] our product [has this unique
selling proposition].

Partners: With support of:

 VALUE
PROPOSITION
guidelines for consultants
Version 1.0

Use the tool at any point when you need to create a shared,
deeper understanding of the product or service an enterprise
is offering. This means not only to support sales or as a
marketing exercise, but also to create or improve the overall
design of the business model.
 Value Proposition / guidelines / version 1.0 / page 1

To ensure actionable results, keep these guidelines in mind:

COLLECT AND STRUCTURE INFORMATION

IN ADVANCE
If there is market intelligence available that is relevant for your client,
prepare a presentation to provide information regarding the customer /
product or service category. It works well to structure this information using
the 4A's of marketing (Affordability, Availability, Acceptability, Awareness).

LIST THE CUSTOMER PROFILES FOR

WHICH TO CREATE A VALUE PROPOSITION
Using market intelligence, identify different customer profiles. Discuss
which customer profiles are most relevant for your product and market. If
you do not have customer profiles and only have time to develop
one or two Value Propositions, use the Customer Persona tool first.

INCLUDE STAKEHOLDERS BEYOND THE

ENTERPRISE
Emphasize that to ensure success, it is important that all parties involved -
not just the people running the enterprise, but also their partners and local
community - feel that they benefit.

EMPHASIZE REAL ABILTIY TO DELIVER

BENEFITS
Without being negative about potential benefits, encourage participants to
think critically about which benefits they can realistically deliver. Place
emphasis on evidence, not enthusiasm.

LEAVE TIME FOR FIRST-TIME USERS TO

GET FAMILIAR WITH THE TOOL
First-time users will need to spend at least a half-hour to get acquainted
with the tool. Include an extra half-hour in the workshop plan.
 Value Proposition / guidelines / version 1.0 / page 2

TIME
1 – 3 hours
It takes about one hour to fill in one worksheet for one group, excluding the
half-hour first-time users will need to get acquainted with the tool. It is best to
first generate a number of Value Propositions on different worksheets, either
for different types of customer, or tapping into different customer insights. For
example, you can make a Value Proposition towards urban customers where
the key benefit is convenience, and towards rural customers where the key
benefit is shelf life. Total time thus depends on the number of groups that can
work in parallel, and number of Value Propositions you develop. We advise
developing at least three or four.

MATERIALS
Large print, drawing or slide of the worksheet; pin board or whiteboard;
workshop materials (markers, cards, lots of Post-its, etc.)
Give an overview of the tool and go through the elements one by one,
highlighting questions that need to be addressed for each.
Keep a set of facilitator cards with the examples for each section of the
canvas and use these to help participants understand what to fill in.

TEAM
You will need one facilitator and one or more people representing the main
parts of the client enterprise. For larger groups: have people in smaller
groups fill in each section and present the outcomes.

DOCUMENTATION
Use flip-overs to capture each element. If you are working in groups, let the
groups present their work to the other groups.
Work with Post-its so you can add and remove elements easily.
 Value Proposition / guidelines / version 1.0 / page 3

Osterwalder, Alexander and Peigneur,Yves; Bernarda, Gregory; Smith, Alan (2014), Value Proposition Design: How to
Create Products and Services Customers Want, Hoboken, New Jersey, USA: Wiley

Everyone deserves great design - http://www.everyonedeservesgreatdesign.com/

Partners:
With support of:
VALUE PROPOSITION CANVAS
Helps identify and assess the benefits you’re offering customers and how well your product meets their needs and expectations.

Customer: Who are the key beneficiaries of your value proposition? Competition: Who may be offering a similar value proposition?

 

Problem: What is the problem you are solving for these customers?

Functional Benefit: What do they gain from your offer? Emotional Benefit: Why are they happy with your offer?

Reason to believe: What is the evidence that your proposition delivers on these benefits?


Key statement: What makes your value proposition the most attractive one for your customers?