How to find your products value and purpose.

One of the first things every person going into business should understand is that you are not selling your amazing product, but you are selling a solution to a problem. While this may often be discussed in a sales training room, it is important to understand the problem and solution sets the basis for your entire business. To be a true customer centric business, the essence of the problem and solution need to be evident through all aspects of the business.

The real value of your product is related to the product and solution, which needs to be evident in your values and purpose, branding, marketing, and operations for it to provide true value. A useful tool for workshopping your true problem and solution position is with a Value proposition canvas.

Mapping out your customers problems compared to your product’s solution gives great insight into the value you are providing and if it is enough to have a successful business. It is important that the business offers a creative and honest self-evaluation with deep empathy of their customer to understand its true value.

To complete your value proposition, follow the following steps using your customer segment. Note if you have multiple customer segments, it is best to assess the product for each segment.

1. Customer Profile The VPC starts with looking at the customers gains, pains, jobs with relation to the problem want solved.

1.1 Customer Jobs describes tasks they want accomplished. These can be rational or latent needs which may also cover social and emotional situations. For example, someone might need new shoes for a run, but also want them to impress peers, and make them feel good about themselves.

1.2 Customer Pains describes annoyances the customer may experience before, during or after undertaking the required job. This could include the decision, missing out, unwanted cost involved, lost time, or not finding the right solution for the job.

1.3 Gains are both what they receive by completing the job, but also what they expect from it. For a product to have real value it needs more than just what is expected. It needs the non-negotiable gain, expected gain, additional gain, and unexpected. In the case of the runners, first they need to be shoes, they are expected to be comfortable for running, additionally they are the latest fashion and technology, and unexpected they might help foot pain or have a data chip for tracking from a phone.

Once the product profile is complete is time to complete the product profile. If you are assessing a current product it is important to honestly assess without reference to points you have made in the customer profile. Furthermore, it is important to understand not all products/services are pain relievers or gain creators, and that all pains and gains from the customer may not be addressed.

2. Product Value

2.1 Product or services you provide, although many VPC instructions state to list all products and services the business offered, it is important that they are only those targeted towards the relevant customer segment. What are you providing.

2.2 Pain relievers are really the core value of the product, not just how it will remove pain, but how it will make the customers life easier and more enjoyable. This could be reduced cost, saved time, and could remove social implications.

2.3 Gain creators, although may be outcomes that the customer is surprised by, they represent a change in feelings the product creates. These are the additional items or unexpected gains the customer may gain from the product.

Once you have both sides completed, compare the characteristics to see if your product stacks up to your customer’s needs?

Is your product providing value to your customer?

Does your product have a purpose?

Can you clearly define your products value and purpose in one sentence using the information?

Want to read more about Value proposition Canvas, this is a great read by Alexander Osterwalder Value Proposition Design: How to Create Products and Services Customers Want

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