Hello! this is Ana at Railsware. In our last video we have discovered how does the lean canvas work for validating your startup business model. Today we will focus on the value your product offers to your customers by learning how to use the value proposition canvas. We will also see how the value proposition canvas works for uber back when it was getting of the ground. If you have any questions or ideas along the way, please, share them with us in the comments. Both startups and existing businesses fight for their place in the market by introducing their products and services. However not all of them are destined to succeed with customers. More than a half of new propositions fail to meet customers expectations and fade away. You can avoid failure only if you identify your customers problems and give them the design, features and functionality they want. And that's what a value proposition canvas can help you with. The value proposition canvas originates from the business canvas. This is a sort of a shortened business plan designed to create the value of your idea by breaking it down into nine essential components. Two of them, unique value proposition and customer segments, formed the value proposition canvas - the tool that allows you to design, test and visualize the value of your product for customers in a structured way. The value proposition canvas is divided into two parts: the customer profile (circle) and the value map (square). Each part consists of three sections that describe specific features of a customer or product respectively. The circle on the right refers to the customer segment, describes the motivation to buy the product, and consists of "jobs to be done", "gains" and "pains". This part explains why the customer needs this product. The square on the left features the value map by listing products and services, as well as describing pain relievers and game creators. The best way to understand the practicality of the value proposition canvas is to investigate it through an example. We've decided to use Uber as an example back in the time of its foundation, and focus on one customer segment - passengers. So, here we go. Let's go back in time to when Uber did not exist yet. How would its founders describe taxi passengers pains back then? We start with the customer profile and jobs your customers need to have done. Don't focus on the functional jobs only. Emotional and social ones are also essential. We pick the following jobs for taxi service users: contact a good service, control cost for the ride, wait for the cab for some unknown amount of time, and pay for the trip. Pains include blockages and problems your customers may face trying to get the jobs done. In our case, taxi customers could experience low cab availability, bad drivers can happen, need to book a cab in advance, and issues with payments for the taxi service (cash or card). The next step is to specify gains. Those are more than just the opposite of the pains. Gains describe positive outcomes the customer expects when the job is getting done. These include benefits, aspirations and results like a trusted driver, zero time on payments, one-click order or cancellation, and tracking your cab. Once we have shaped the customer profile, we can move forward to the value map. Here we begin with products and services your value proposition offers to get the job's done. Our list consists of passengers mobile app, Uber Pop, UberX, and Black Cab. Then we need to describe how these products or services can minimize or reduce the mentioned pains, and outline in which way they create the gains. Pain relievers are meant to improve the customer experience. We chose 24/7/365 availability of cabs, driver ratings, arrival and travel time prediction, and flawless automatic payments. As gain creators, an Uber customer can expect a rating system, automatic credit card payments, the ability to manage all the details on a single platform, navigating your trip on the map. The value proposition canvas aims to achieve a fit between what the customer wants and what your product or service can offer to overcome pains and generate gains. In practice, our customer profile may have tons of jobs to be done, pains and gains, but the value map outlines which of them you focus on. The more items from the right part have matches on the left one, the higher the probability that your product will strike home. Do not forget that the value proposition canvas is a detailed extract from the lean canvas or business model canvas. Therefore, the success of your future product depends on how good the entire canvas is. A holistic approach to assessing what your customer wants and what you can provide is the path to success. That was the intro to the value proposition canvas. 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