From the segmentation process it is clear that each beneficiary has its own needs/demands when it comes to the value. Therefore, each beneficiary requires a unique value that will solve their problems or help them achieve their benefits.
Value is too often wrongly understood as price. Value is not a price, but they are connected. Some product or service has different value for different beneficiary according to their momentary situation or needs. For instance, professional orientation workshop which aims to empower and inform high school students how to make a best possible decision about their career has certain price which is the same for all high school students. However, it has much bigger value for student of the 4th grade who hasn’t still decided which faculty to enroll even though there are only 4 months left, than to a student who goes to 3rd grade and still has plenty of time to make decision.
So, we need to create a value which will solve our beneficiary’s pains and help them reach their potential gains. In order to do that, we need to understand our beneficiaries.
Define Value proposition canvas
- We need to step into their shoes and take a look into life from their perspective. Trying to understand their habits, personal values, or challenges they are facing.
- From the perspective of your project, while you are into their shoes try to mark all jobs your beneficiary needs to do.
- While doing those jobs that your beneficiary is trying to achieve, try to understand the outcomes or concrete benefits. Shortly describe all gains your beneficiary is striving for.
- At the same time your beneficiary is trying to prevent certain risks or obstacles, and to avoid potential bad outcome. Shortly describe all pains your beneficiary is facing;
- List all gains that you can help your beneficiary to achieve, and prioritize them;
- List all pains that you can help your beneficiary to avoid, and prioritize them;
- Transform list of gains into a list of gain creators by your project. You will do that by short description of how your project is creating gain that your beneficiary needs;
- Transform list of pains into a list of pain relievers by your project. You will do that by short description of how your project is relieving your beneficiary from the pain that they are facing.
By doing this, you managed to create a value proposition for your beneficiary (Picture No. 7.).
Picture No. 7. A value proposition canvas
Example of value proposition canvas:
Alison is a high school student and she is attending the 4th grade. This year she needs to enrol to some faculty in order to make a successful career. Alison is insecure regarding her career. She is not sure what is best for her, and at the same time she feels strong pressure from the parents and society to make “a right decision”.
Her job is: She needs to decide which faculty to enrol this year;
Her pain is: She will make a wrong decision which will ultimately lead to a very bad and difficult life. Also, because of that mistake friends and family can be very disappointed;
Her gain is: She will find exact faculty she would like to enroll and which will help her to have a successful career;
Organization product is: Professional Orientation workshop;
Organization pain reliever is: It will help her in a way that she will be empowered and in-formed enough to make “a right” and independent decision for which she will not regret;
Organization gain achiever is: She will be sure that a faculty she choose will be “in line” with her competences, skills and interests, which will make that her rise in career goes fast and smoothly.
Later on you will create messages for your communication with beneficiaries, so now is the perfect time for the Elevator Pitch based on value proposition.
We are going to use what we’ve done till now in this chapter and transform it into clear and motivational sentences of value that you can provide for your beneficiary. That is actually a value proposition for each segment of your target group, which is basis for all messages we are going to create later.
We will do this by using a following value proposition pattern:
Our __ Project__
Who want to __jobs which they need to do__
By __verb (reducing, avoiding, preventing, etc.)__beneficiary pain__
And __verb (increasing, enabling, etc.)__beneficiary gain__
(Unlike __ competing value proposition__.)
When creating a value proposition for your beneficiary, have in mind some of the most important elements like accessibility, performance, risk reduction, newness, customization, getting the job done, security, convenience/usability, status, cost reduction, design and price. By doing this for each job and each beneficiary, you’ve actually created a value proposition of your project.
- Progress bar 32%
Following: Communication and conversation