Value Proposition Design

Value Proposition Design is a framework which can ensure that a product or service is
positioned in line with the needs and values of the customer.

Alexander Osterwalder created the Value Proposition Design as a framework to make sure the
product and market fit. It is a thorough tool for modeling the relationship between value
propositions and customer segments, two components of Osterwalder's Business Model.

When developing an idea from scratch or when there is a need to improve an existing one, the
Value Proposition Design can be applied.

The customer profile and the value proposition of the business serve as a basis for the Value
Proposition Design.

In the customer profile: (1) Gains are the things that customers need and want, what would make
them happy, and what makes a value proposition more likely to be adopted. (2) Pains are the
negative experiences, emotions and risks that the customer experiences in the process of getting
the job done. (3) Customer jobs are the functional, social and emotional tasks customers are
trying to perform, problems they are trying to solve and needs they wish to satisfy.

In the value map: (1) Gain creators are the ways in which a product or service adds value and
creates gains for the client. (2) Pain relievers, how the product or service alleviates customer
pains. (3) Products and services which create gain and relieve pain, and which underpin the
creation of value for the customer.