2/6/12 The Customer-Value Canvas v.0.

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Make Your Business Model Clear with Vivid Thinking. Guest Post by Dan Roam
Stanford Talk & the Bay Area
Jan 10, 2012
The Come-Vale Cana .0.8
Alexander Osterwalder
Ive been thinking about plug-ins that complement the Business Model Canvas for a while. One concept that Ive been looking at
more closely over the last few weeks is the invaluable jobs-to-be-done approach. I tried to turn it into a visual approach like the
Business Model Canvas (BMC). The result is a prototype conceptual tool, the Customer Value Canvas v.0.8., that I present in this
blogpost.
Originally, I set out to design an ultra applicable, simple, and visual Canvas for the (customer) jobs-to-be-done concept. My motivation was to
create a dedicated and complementary Canvas that helps organizations sketch out and analyze the fit between their value propositions and the
customers they target in a more granular way than the Business Model Canvas mapping does.
The result of my endeavor is a prototype conceptual tool, the Customer Value Canvas v.0.8. Its the outcome of several iterations of prototype
concepts, test runs with workshop participants, try-outs students, applications with my own team, and several conversations with my #bmgen co-
author Yves Pigneur (who is also a concept geek like myself). While the initial idea was to design a JOBS Canvas, the result turned out to become
a mash-up of several approaches from various different thinkers.
Relaionhip beeen BM Cana and Come-Vale Cana .0.8
To explain the Customer-Value Canvas bit by bit and show how it relates to and complements the Business Model Canvas I used a series of
annotated screenshots of our upcoming Business Model Web App (sign-up for the release date).
The first screenshot simply illustrates how I started to map out a business model, notably by adding sticky notes to the Customer Segment and
Value Proposition part of the Business Model Canvas.
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In the second screenshot the annotations highlight how a Value Proposition targets a specific Customer Segment (or several segments) aiming to
create value by addressing a customers needs.
However, the Canvas does not make the details of the Value Proposition (VP), nor its fit with a Customer Segments (CS) needs, explicit, because
it focuses on the big picture. The annotations in the second screenshot describe which characteristics behind the VP and CS could be interesting to
study in order to understand and analyze their relationship and fit in more detail. This would allow us to map what value precisel is created and
with regard to which customer needs. Thats where the Customer-Value Canvas comes in. It describes:
(A) For each Customer Segment: which jobs a customer is trying to get done, and all the related customer pains and customer gains
(B) For each Value Proposition: the bundle of products & services targeted at the customer and how they are expected to create gains or
relieve pains
In the third screenshot the annotations introduce the first customer-focused part of the Customer-Value Canvas and they describe how this
helps adding more detail to a specific Customer Segment in the Business Model Canvas.
(1) Select a specific Customer Segment in the Canvas
(2) That Segment will become the one you outline in more detail on the right hand side of the Customer-Value Canvas
(3) Specify the specific job(s) that Customer Segment is trying to get done. For a digital music player, for example, the job(s) would be
buying, downloading, transferring, and listing to music on the go
(4) Now outline all the things that represent a gain to the customer for the outlined job. For the previous example that might be convenience,
having all ones music available at any time, the ability to buy new music, automatically playing music according to your mood, etc.
(5) Finally, outline all the things that represent a pain to the customer for the outlined job. For the digital music player this might be the weight
of a device, its learning curve, its battery life, etc.
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In the fourth screenshot the annotations introduce the second value focused part of the Customer-Value Canvas and they describe how it helps
adding more detail to the Value Proposition that targets the Customer Segment outlined above.
(6) Select the Value Proposition aimed at the Customer Segment outlined on the right-hand side of the Customer-Value Canvas
(7) Thats the Value Proposition you outline in more detail on the left hand side of the Customer-Value Canvas
(8) Specify the specific bundle of products and services targeted at the selected Customer Segment. For the digital music player, for
example, the bundle of products and services might consist of a device, a software, and an online store does that ring a bell? Im talking
about the iPod, of course
(9) Now outline how exactly that bundle of products and services should create gains. For the iPod that would be by offering thousand
songs in a pocket (remember that sentence Steve jobs repeated over and over when he launched the iPod?), by offering access to an online
store with content from all major recording companies, etc.
(10) Finally, outline how exactly the bundle of products and services should relieve the customers pain regarding the outlined job. For the
iPad that would be the reduction of the learning curve through seamless integration of hardware and software, the elimination of constantly
having to copy songs back-and-forth due to tiny storage capacity (before the iPod digital music players could hold one album of
approximately 24 songs)
The next image connects the two pieces described above. The resulting Customer-Value Canvas now allows you to map out and analyze how the
Value Proposition you designed fits the Customer Segments job and the customers pains and gains. While the right hand side of the Customer-
Value Canvas (customer-side) is something you obsere in the market (= studying the customer), the left-hand side (value-side) is something you
design (= make choices).
This is where the Customer-Value Canvas connects with Steve Blanks Customer Development Process (outlined in his invaluable book The Four
Steps). Steve invites people to get out of the building and talk to customers. Now you have another tool besides the Business Model Canvas to
map the outcomes of those customer conversations.
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Eample
As mentioned above, I tried out several iterations oI the concept with my executive workshop participants and university students. I also tested the
Iinal Customer-Value Canvas 0.8 presented in this blogpost in my own business. Together with Alan Smith, #bmgen designer and co-Iounder oI
my soItware business, we mapped out the Customer Segments and Value Propositions Ior our upcoming Web App.
In the images below I illustrate how the Customer-Value Canvas helped us visualize and structure our conversation about the Value Proposition oI
our Web App Ior consultancy clients (who apply the #bmgen concept to help their own clients innovate their business models).
The next image outlines the jobs we are trying to help our consultancy clients get done. There are two main types oI jobs we are interested in
helping our consultancy clients with. On the one hand they advise clients on business models by running workshops and delivering results and
communications. On the other hand they have to continuously acquire clients, retain clients and demonstrate credibility in their consulting domain. I
used color-coding to distinguish the diIIerent type oI jobs.
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The following image outlines some of the consultancy clients most important pains related to the described job. This includes the risk of giving
clients bad advice, the difficulty to manage client follow-up and communication, the time-consuming production of PowerPoint slides, and the risk
of defecting clients .
The next image outlines some of the consultancys gains related to the job. This includes (specialist) support that helps them advise clients on BMs,
easy monitoring of client progress, an easy way to acquire clients, switching costs that prevent customers from leaving, and growing and recurring
revenues.
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The ne image ho hich podc and eice ae ageed a he come. In he cae of o eample hi i impl a clod-baed bine
Model Web App and dedicaed eampace fo clien o eam.
The folloing image ho ho he Vale Popoiion i epeced o eliee pain. Thi inclde implified podcion of bine model docmen
and docmenaion, deceaed ik of haing aio eion of he ame bine model docmen ciclaing, and a collaboaie plafom ha
make oking ogehe eaie.
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The last image shows how the Value Proposition is expected to create gains. This includes the support for business model consulting, tools that just
work, customization, smooth and continuous client communication and follow-up, and lastly, the fact that it creates switching costs for a
consultancys clients.
Ho it all started
The JOBS concept is an approach that I read first about from Tony Ulwick of Strategyn (cf. Understand Customer Needs) and then from
renowned Harvard Professor Clayton Christensens consulting firm Innosight (cf. Generating Breakthrough Solutions Using Jobs to Be Done).
I now frequently use the JOBS concept in my workshops because it helps business model innovators look at Value Propositions from a totally new
perspective. Check out how Clayton Christensen explains and illustrates the JOBS concept in the video below:
The idea for a visual JOBS Canvas came up when I met with Mark Johnson last fall. Mark is co-founder of Innosight and author of the excellent
business model book Seizing the Whitespace. In our conversation we chatted about the fact that the JOBS concept is tested and proven, but that
there is no visual template for it like for the Business Model Canvas. That is a pity, since I have come to learn how powerful visual templates can be
to foster strategic conversations and innovation. Hence, I set out to design a JOBS Canvas.
The JOBS Canvas would be like a plug-in that complements the Business Model Canvas. I started using the term plug-in for methods that either
allow going into more detail for a specific building block of the BMC or allow mapping another strategic aspect that is not directly covered by the
BM Canvas.
While iterating through several conceptual designs I quickly realized the value of mashing-up the JOBS concept with other approaches. I threw
other concepts into the mix, notably the Customer Empathy Map (outlined in #bmgen, but coined by XPLANE, which is now part of Dachis
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Group), the problem-solution fit (a lean start-up concept), a working paper from 1996 by NYU on Reinventing Value Propositions (pdf), and
Steve Blanks Customer Development Process (outlined in his invaluable book The Four Steps).
If you found this blogpost interesting, dont hesitate to test the Customer-Value Canvas v.0.8 and provide me with some feedback. Ive already
seen how it works for several people and groups, but Id be curious how it works for you!
I deliberately left the Customer-Value Canvas v.0.8. in a raw form so you realize its still a prototype concept
41 Responses to The Customer-Value Canvas v.0.8
1. LILIANA FERREIRO says:
January 10, 2012 at 8:11 pm
Great Post! I will add it to my use of the BMG Canvas in my work with entrepreneurs in Argentina.
Do you plan to come out with something more detailed relating the Financial Projections? Congrats, Liliana
2. Aleander Osteralder says:
January 11, 2012 at 1:15 am
No plans for that, but we are likely to provide more examples in relationship with our iPad App and upcoming Web App.
3. Philip Galligan says:
January 11, 2012 at 4:32 am
Hi Alex
A great extension for the BM canvas. A drill down into detail like this is the perfect next step for the canvas. It will probably be possible to
create additional detail canvasses for all 9 blocks.
Again it is visually compelling and self explanatory on one page. I will bring it into use at my first opportunity.
Best regards
Philip
4. Mark Dietrich says:
January 11, 2012 at 8:11 am
Alex,
An excellent complement to the BMC approach thanks for putting this together. In my own work, I usually start with the jobs to be
done question and once those answers are in place, you can roll things up to possible business models to package the delivery of value
to the customer. The way you have compartmentalized the different parts of the value proposition makes it easy to align with the BMC.
Thanks again!
Mark
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5. Jorge Palavecino says:
January 11, 2012 at 8:57 am
Alex,
Congrats from Uruguay, Just Great!.
As say Philip, its a very natural next step for BMC.
Is aligned to the same kind of vision and helps in the way to build with feet in earth.
Next time ill be using the tool and tell you about my experince, but from now im sure that will be a good incorporation.
Regards,
Jorge.
PD: Reading Lilianas post i realize that BMC, is working good in the Rio de la Plata too. Thats a good thing!.
6. Patrick Sthler says:
January 11, 2012 at 10:57 am
Hoi Alex,
great that you worked on this part. Your original value proposition was the least strong part of your canvas. You mixed the offer and the
value proposition in your original work. That is a common mistake particularly entrepreneurs do. That is the reason why I decided to
separate the two on the canvas.
The offer is just one part to fullfil the value proposition. Actually, all other components like the revenue model, the channels, your corporate
values, etc. have to fulfill the value proposition as well. The value proposition is what excites your customer, the rest is all about fulfilling the
value proposition. Here some ideas I had some time ago http://blog.business-model-innovation.com/2010/04/business-modelling-value-
propositon-vs-value-perception/
Keep on rocking
All best
Patrick
7. Alexander Osterwalder says:
January 11, 2012 at 1:47 pm
@Jorge looking forward to reading about your experience with the CVC.
8. Alexander Osterwalder says:
January 11, 2012 at 1:48 pm
@Patrick great ideas, as always!
9. Jan Schmiedgen says:
January 11, 2012 at 5:33 pm
Hey Alex,
Just before reading this, I uploaded a paper (http://scr.bi/uservalue) that deals exactly with this often somewhat simplified topic in the context
of BMI. So Im glad to see your growing attention to this rather neglected building block. For us designers the quest for value is the
most important one. It often is emergent in kind and appears during complex interactions (of a lot of stakeholders), especially when we
consider value creation via the change or production of meaning (new practices, new diffusion or domestication of technology, etc.). I really
like the idea of mapping the value proposition to particular customer segments. However, their systemic relations to other entities (e.g. key
partners, regulators, co-creators, etc.) of, lets say a business ecosystem, cant be visualised (i.e. grasped) like this. But they are the ones
who negotiate what actually the emergent value is! So sometimes you dont know the value in the beginning. I think exactly at this point of
a BMI process, the oftentimes criticized design thinking/service design approaches and tools (e.g. context maps, value webs, value flows or
journey maps to name but a few) may help to uncover the value (propositions) for all stakeholders (e.g. employees, partners, financial
markets, etc.). I for instance very much like Elke den Oudens value flow mapping or similar visualizations:
http://www.valuableinnovation.com/Valueflowmodelzoom.html (based on http://www.elkedenouden.nl/innovationdesign). It is simple, easy,
logic and helps thinking the underlying basic assumptions about the systemic relations that have to be taken into account when crafting
holistic and usually reciprocal value propositions.
Impatiently looking forward to see how this develops and thanks again for the great work so far!
Best regards,
Jan
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10. Karl Burrow says:
January 11, 2012 at 6:36 pm
Hi Alex,
Great addition to the BMC and much needed!! I have explored with this concept many times over with the original canvas by using a VP
explorer, word templates, Steve Blanks Method and a host of others for VP Mapping.painful at times. One useful tip used in my
workshops was to draw up just the 2 blocks VP and CS and go through a focuseddetailed mapping exercise along with the Empathy
Map from the book and link them for a much clearer understanding of the process on Jobs to be Done.
The CVC really expands this simplifies the process. Also easy to see how it affects the BOS 4 actions framework.
Best
Karl
11. Business model as jobs to be done Zaft Zaft says:
January 12, 2012 at 2:30 am
[...] January 12th, 2012 RikBlog, CollectedNo Comment Wow. Alex Osterwalder, creator of a what these days seems almost ubiquitous
framework for business modeling, has tried his hand at a new variation of the business model canvas, the customer value canvas. [...]
12. Karl Burrow says:
January 12, 2012 at 3:41 am
Hi Alex,
Great addition to the BMC and much needed!! I have explored with this concept many times over with the original canvas by using a VP
explorer, word templates, Steve Blanks Method and a host of others for VP Mapping to let the audience grasp this..a bit painful at times.
One useful tip used in my workshops was to draw up just the 2 blocks VP and CS and go through a focuseddetailed mapping exercise
along with the Empathy Map from the book and link them for a much clearer understanding of the process on Mark Johnsons Jobs to be
Done tagline and concept.
The CVC really expands this and simplifies the process. Also easy to see how it affects the BOS 4 actions framework.
Best
Karl
13. Cyrille KWABONG says:
January 12, 2012 at 7:50 am
Great Job Alex !
I have tried it and it really brings me more closer to the real needs of customers. Well done.
What do you think of adding two small pieces :
In the CS We add :
- Present Assets (after the pain piece)
Fitting in the PV with :
- Required Assets
I think it is necessary to take in consideration what customer already have as assets , on top of which we can decide to build more
accessible VP.
Taking back your example :
The VP may be adjusted if for instance the customer doesnt have internet access (which is the first requirements for the customer)
14. Alexander Osterwalder says:
January 12, 2012 at 10:10 am
Thats something I would add through color coding when using the Canvas. I like keeping Canvases as simple as possible
15. Wim Rampen says:
January 12, 2012 at 2:15 pm
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Hello Alex,
Excellent exercise. I did something similar a couple of months ago in my search to model Value Co-Creation.
Im using desired outcomes as the result of a Job-to-be-done and the Customers journey as the descriptor of performing the job..
You can see it here: http://wimrampen.com/2011/06/26/value-co-creation-canvas/
Let me know what you think.
Wim Rampen
@wimrampen
16. Jaon Fonceca says:
January 12, 2012 at 5:44 pm
Alex, I find your visualizations of business process are simple, clear, and transformative
Thank you for doing what you do
17. Jack Robeon says:
January 13, 2012 at 5:13 am
Alex,
Another fine and on-target post. I appreciate the gains, pains, jobs-to-get done structure.
For B2B markets, what do you think of simply quantifying customer value using something akin to a customer value model like the demo
shown at http://oakstonepartners.com/online-tools/customer-value-model.html. Weve been using customer value models for a couple of
years in product development and sales, and they have transformed how we think about innovation.
18. Adam Johnon says:
January 13, 2012 at 7:52 am
Alex,
Great add to the toolbox and it is something, as others have mentioned, that I have been tackling in other ways, but to have it appear
seamless and integrated with the BMC is better.
Only thing Im trying to wrap my head around is the gains block.
My method is to not only understand the job to be done or need, but the desired outcome. This in turn leads to an outcomes driven value
proposition. It appears the gain block is what I call desired outcomes and the only add I would have is an indicator of the direction. Which
somewhat contradicts the label, Gains. Sometimes the desired outcomes is a decrease. (i.e. minimize flu related deaths). I guess by
achieving the desired outcome that is a gainso hmm perhaps it works, but its important that an indicator of direction is added to the gains.
Hope this make sense
19. Mike Lachapelle says:
January 13, 2012 at 9:19 am
Hey Alex
Ive been doing some thinking about the issue of too much focus on products and services, that sometimes detracts from the importance of
serving the client segment. I would like to propose for consideration a modification to new canvas.
Box 8 (currently Products and Services) could be modified to be Needs. The logic behind this builds on the Job-to-be-done logic of the
Client Segment. The Client has a job they have to do with which you can help. They have a need in order to get the job done that you can
solve for them. That need becomes the value proposition in the BM.
Allow me to illustrate with an example. Unfortunately I dont seem to be able to post graphics so I will have to type it out.
Scenario: Start-up is looking at the potential for brining commuter transit rail service to the rural and suburban areas of a large city that
currently has no such service.
Client segment: Rural and Suburban residents
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Job-To-Be-Done: Have to get to a job, or an appointment in the city (could eventually be broken into two sub-segments, occasional and
frequent travellers)
Pain: Stress of traffic and driving (worst at rush hour); finding parking in the city; costs of driving and parking, environmental impact of cars
Gain: Stress reduction; comfort; savings; environment
Needs-to-be-served: Alternative to driving; reasonable costs; connection to city public transit; good schedule
Pain relief: no driving in or to city; integration with city transit; day rates and frequent users rates
Gain creators: comfortable, modern rail transit; on-board amenities (coffee, internet), connection points to city public transit service
This approach doesnt specify the actual product or service, but rather the value created by serving the need of the customer
20. 5 Cornerstones of a Powerfully Successful Business Development Pitch says:
January 13, 2012 at 7:38 pm
[...] will meet the unfilled need. As a helpful aside, you might want to checkout The Customer-Value Canvas from Alexander Oster-
walder. The post presents his visual framework for sketching out and [...]
21. Innovation Excellence Business Model Canvas Set to Explode says:
January 16, 2012 at 7:14 am
[...] In the first few days of January of this year Alex provided his next step where he has been thinking even more about plug-ins that
complement the Business Model Canvas for a while. One concept he had been looking at more closely over the last few weeks is the
invaluable jobs-to-be-done approach. In his work-in-progress he is wanting to turn this concept into a visual approach like the Business
Model Canvas (BMC). The result is a prototype conceptual tool, the Customer Value Canvas v.0.8., that he present in this blog post [...]
22. SAMUEL A VILLEGAS says:
January 17, 2012 at 1:14 am
Great and helpfull post and replies.
On the same track, I have been working real cases from last 9 months on detailed business value flow pivots Canvas at same conceptual
layer, for and from others blocks in addition to costumer segments one (B2c and B2b). In Addition, i included Social Responsanbility
Bloks 10 & 11 (Tangible incomes and outcomes, and In-tangible Social Benefits). Soon I will be sharing snap shots using Alex IPAD tool,
and additional excel`s from my own to help in developing value flows from blocks-canvas (concepual a Tactical BMC layers). Cheers
23. Alexander Osterwalder says:
January 17, 2012 at 3:12 am
Samuel, Im looking forward to that!
24. Ulrik H. Gade says:
January 18, 2012 at 12:42 am
A very useful and commendably simple addition.
What it might lack is a broader overview of the match or otherwise between the current or planned offering and what customers really want.
For that, I like Indi Youngs mental models, see e.g. http://www.boxesandarrows.com/view/what-is-your-mental.
This originates from the user experience field where weve long practiced, or at least preached, the type of observational research mentioned
in the video clip. Nice to see awareness of this type of research gaining ground in the business community too.
25. Customer value canvas, ligar tu propuesta de valor a los segmentos de cliente says:
January 18, 2012 at 11:16 am
[...] Osterwalder public en su blog hace unos das lo ltimo en lo que est trabajando: un lienzo de valor de cliente (Customer value
canvas). Dejemos que l explique el motivo: Llevo pensando durante un tiempo en plug-ins que [...]
26. Tarzan Sharif says:
January 18, 2012 at 5:25 pm
Business model Alchemy indeed Alex question: do you think by adding plugins or more in-depth compartmentalization of your 9 blocks
could take away from the purpose of business modeling? I feel that once the blocks become too indepth everything turns from modeling into
business writing i.e. A new executive summary format. Which in itself would prove useful & innovative for liberating an entrepreneur from the
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laborious task of writing the business into actually creating the business on the canvas as an artist would create a painting. Such things may or
may not be worth considering but with the 9 i believe you have resolved the modeling task MAYBE layers ontop of your CANVAS
would prove to be more beneficial especially for a UI /UX approach for your web app & mobile app. Ideas from one artist to another. I
see a master piece none the less, i look on with supreme gratitude for your advancements! We all owe you our respects. cheers
27. Peter T says:
January 19, 2012 at 4:53 am
This plugin is trying to fix an old shortcoming of the canvas. We were not able to give an answer to the most fundamental question of any
business model: whats the customers reason to buy. The question is not even asked in the canvas, and can only be answered with the
canvas through trickery.
In my understanding, the arrows in screen-shot three and four are only going in the right direction if we use the canvas to decompile (or
analyse) a business model. If we are designing imho they would point in the other direction: from the plugin (i.e. the reasoning about the
customers reasons to buy) to the canvas.
28. Alexander Osterwalder says:
January 19, 2012 at 5:08 pm
@Peter its not trying to fix anything, since the Canvas was not broken. Focusing on the customers reason to buy implies a product-
customer focus. The Canvas is about how all the 9 building blocks fit together to create value.
29. Alexander Osterwalder says:
January 19, 2012 at 5:10 pm
@Tarzan As long as people dont fail to keep the big picture in mind (business model perspective) its ok to focus on more detailed issues
(value proposition customer segment fit). Both are high level perspectives that dont go into as much detail as a business plan Both
Canvases are instruments to structure your thinking at a high level.
30. Tarzan Sharif says:
January 19, 2012 at 10:37 pm
Agreed! Its going to be interesting to see how far down the rabbit hole your framework can help the world through creating the
philosophers Stone of golden business model innovation/ value creation. I cant wait to create & connect value with your Web app! with
either the route of plugins or layers youre going to have quite a useful tool for everyone to use. feels like you should host a launch event
haha
31. Wie adressiere ich besser die Bedrfnisse meiner Kunden? says:
January 21, 2012 at 10:30 am
[...] seines Frameworks The Business Model Ontology. Sein aktueller Blog-Beitrag the customer value canvas zeigt wie eine analytische
Vorgehenswese durch Visualisierung zur besseren Identifikation [...]
32. Renato Nobre says:
January 27, 2012 at 4:33 am
Alex, your work and partnership (tested experiment right with Steve Blank is awesome http://migre.me/7Hd3N . The new subcanvas to
detail the VP, Problem/Solution/Mkt Fit is such a great add. Me and Guta are already using for the class we will give next week at ESPM (i
sent you an email about it yesterday). The people that aim to fill the right side of the 0.8 Canvas could leverage Tools and maps of Service
Design Thinking, like those brought on like customer journey. http://thisisservicedesignthinking.com/ book (Canvas is there obvious!)
Thanks for mentioning Brazil again on your video at Stanford!
I will run some more experiments (channel testing) on my startup of the mobile digital certification solution i told you, hope to have more
hypotheses tested soon
Cheers
Renato
33. Alexander Osterwalder says:
January 29, 2012 at 12:14 am
great! looking forward to hearing about the outcome of the experiments
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34. Hamilton Costa says:
January 30, 2012 at 5:34 pm
Great job Alexander! Its a great add on with simplicity to the canvas. And needed. I frequently had to make additional efforts to link VP to
CS when explaining the canvas to customers or students. This way is clear and easier.
35. Johan Enestam says:
January 30, 2012 at 10:59 pm
No wonder this is one of the best blog i ever read about bmc..well done.
36. Tomas Zdbel says:
February 1, 2012 at 2:49 am
The Customer Value concept reminds me the so called strategic concept we use when working on marketing campaigns for our clients. It
consists of the following:
1. The market category this, among other things, defines our competition
2. The segment description of the customers
3. The customers insight what do the customers REALLY want and think (and fear); sometimes they dont say it loud and thats why it is
the most difficult part in the Customer Value Concept it is closest to the jobs to be done part
4. The product what it is and what does it do
5. The products attributes cheap vs. expensive, small vs. big and so on we can derive gain creators and pain relievers here, too
6. The Benefit does the product answer the insight?
7. Reason To Believe (RTB) proving we can deliver the benefit
The strategic concept is mainly used to position (differentiate) brands or specific products on the market and in customers minds.
The difference from the Customer Value Concept is that it focuses on one insight and getting a single benefit message across to the customer
it is about simplifying the marketing communications. The CV concept is more of an idea generating tool.
Seems like they complement each other you can use the CV concept for generating ideas for brand/product differentiation, the strategic
concept makes you choose what is the main focus and what your brand/product/service stands for.
37. Tomas Zdbel says:
February 1, 2012 at 3:34 am
Hi again,
I would like to develop my thoughts about the CV concept some words about the example described in the blog post. Calling the BM
Web App a value proposition seems to be a flaw The App is a product and as such is a vehicle for the value proposition, not the the value
itself.
Alex, please consider changing the CV canvas in the following way:
1. Change the Value Proposition into Product
2. Change Products and Services into Products Attributes and Elements
3. Change the Fit into the Value Proposition(s)
I did it with the Web App example myself and it did more sense to me.
Mind you, you will generate multiple value proposition ideas this way as you will answer each and every gain or pain.
On the other hand, it will make the canvas user focus on the core values and create a logical path for each of them.
Lets take the clients retention job. The pain is the defecting clients. The pain reliever is the higher switching cost. Thus, the Value
Proposition created here is the high client retention rate. Ta-da! And heres the question: which products attribute or its element makes the
switch costly? In other words: how do we deliver or create the pain reliever? Why should anyone believe it works? We need a proof that
we can deliver that specific pain reliever (and value proposition) and it ideally it should be derived from the product: its attributes or
elements.
What do you think?
38. Doug Gilbert says:
February 1, 2012 at 5:38 am
Alex,
Because business schools maintain a traditional focus on marketing as a separate subject (dating back to the 1950s), I have been looking for
ways to adapt the BMG Canvass to that subject. This is a nice addition to the BMG Canvass.
In the academic setting, the fit to strategy classes is 100% clear but marketing was a bit more of a stretch. This tool helps. What I also do in
2/6/12 The Customer-Value Canvas v.0.8 Business Model Alchemist
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the marketing classes is to have students populate the rest oI the eight blocks with marketing centric ideas. For example, costs are marketing
costs and key resources are key marketing resources.
What this shows is that sometimes there is a need to develop a BMG Canvass in a Iunctional mode. It could also be valuable in companies
(such as Swiss companies)that have more traditional structures.
39. Julian says:
February 3, 2012 at 8:28 am
Hi Alexander,
just one question to the upcoming web app:
How does it relate to the older web-based tool at http://bmdesigner.com/? Is it kind oI a successor or completly diIIerent?
40. Aleander Osteralder says:
February 3, 2012 at 11:41 am
Boris Fritscher, who is on our development team, developed bmdesigner in his academic research as a prototype.
41. Yannick says:
February 3, 2012 at 11:02 pm
Nice add-on Alex. The discussion with client on VP and Customer segment is certainly the one that have the longest lead time. The visual
strength oI this new concept will bring additional clarity to my customer.
I see here a Iabulous opportunity to introduce a speciIic set oI hypothesis (introduced by G. Blank) to kick oII the experimentation phase. I
will test this with my next client.
Yannick
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