Value Proposition Canvas: what it is and how to use it

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Have you ever tried to sell an amazing product and still no one bought it? Have you ever had that feeling of “my service is great, but no one seems to see it”? Believe me, you are not alone and it happens all too often.

Many companies have great products, but fail to clearly demonstrate the value they deliver to the right customer. That’s where Value Proposition Canvas: a practical, visual and powerful tool to align what you offer with what your customer really needs, wants and values.

In this article we will understand what the Value Proposition Canvas is and learn how to use it.

What is the Value Proposition Canvas?

Origin of the concept

The Value Proposition Canvas was created by Alexander Osterwalder, the same author of the famous Business Model Canvas. It emerged as an extension to deepen the “Value Propositions” block of the business model, detailing in more detail what really matters to the customer.

Difference between Value Proposition Canvas and Business Model Canvas

Although they are complementary, they have different objectives:

• The Business Model Canvas It is a broad view of the business model, with nine blocks.
• The Value Proposition Canvas, on the other hand, focuses on the alignment between the solution offered and the client's pains, desires and tasks.

“The Value Proposition Canvas is a tool that helps the company better understand what really matters to the customer — their pain points, expected gains and tasks to be accomplished.”

Why use the Value Proposition Canvas?

The fit between product and customer

Before investing heavily in paid traffic, content, branding or automations, you need to ensure one thing: that what you sell actually solves a real problem for a real customer.

This alignment is called Product-Market Fit. And the Value Proposition Canvas is a map to find that fit.

Preventing wasted time and money

Therefore, it is essential to map out what your customer needs, feels and wants, in order to avoid “kicking the can” of ideas. This way, you avoid running campaigns that no one clicks on and save energy and money on strategies that don’t convert.

“The Value Proposition Canvas avoids waste by aligning the solution with what really matters to the customer.”

Value Proposition Canvas Structure

The canvas is divided into two large areas: Customer Segment (right side) and Value Proposition (left side).

Customer Segment

Here you map:

• Client Tasks: What does he need to do in his day to day life? What responsibilities does he want to take care of?
• Pains: What prevents you from performing these tasks with ease? What frustrates, limits, or worries you?
• Earnings: What does he want to achieve? What benefits, results or feelings does he expect?

Value Proposition

Now you connect:

• Products and services: What do you offer to help the customer?
• Pain relievers: How does your solution reduce or eliminate customer barriers?
• Gain Creators: How do you deliver the results he seeks?

So this simple framework allows you to cross-reference what you deliver with what your customer values — and that’s where the gold lies.

Thus, the visual representation of the Value Proposition Canvas is, in summary, as follows:

How to build your Value Proposition Canvas in practice

Step by step

1. Choose a specific customer segment
   Focus on a real avatar, not a generic audience.
2. Map the tasks
   Ask: What does this person do on a daily basis that your solution can make easier?
3. Identify the pains
   Go beyond the superficial. What emotional, technical or financial obstacles does she face?
4. List the expected earnings
   Think like your customer: what would make them smile from ear to ear?
5. Relate your products/services
   What do you actually deliver? Be specific.
6. Describe how your solution alleviates pain and generates gains
   Herein lies the magic: connect each pain to a reliever and each gain to a benefit.

Practical example: Digital marketing agency

Let's assume your ideal client is a marketing manager of a medium-sized company.

• Task: Generate more qualified leads with low budget.
• Pains: Small team, work overload, pressure from management.
• Expected earnings: Predictable lead generation process, leadership confidence, less stress.

Yours value proposition should then be:

“We help mid-sized companies generate qualified leads in a predictable way with inbound marketing strategies, without overloading the internal team.”

Thus, the Value Proposition Canvas, filled out, would look like this:

Practical applications in digital marketing

Content, campaigns and sales funnel

With a well-structured Value Proposition Canvas, everything in marketing begins to gain coherence.

In other words, when creating content for your blog, social media or email campaigns, you can target messages that directly touch on the pain points and desires of your ideal customer. For example:

• Pain mapped: “I can’t prove the ROI of marketing.”
• Generated content: “5 ways to demonstrate ROI of digital campaigns with real data.”

“When you clearly understand your customer's pain points, your communication becomes much more effective and relevant.”

Brand personalization and differentiation

Likewise, you start to stand out from the competition not by what you do, but by why and how you do it. So, it’s no longer about the service itself, but about how it transforms your customer’s life.

Signs that your value proposition is misaligned

Companies often continue to communicate benefits that no one values or try to solve problems that customers don’t even have. So how can you identify this misalignment?

• Low engagement with content and campaigns.
• Leads who don’t fully understand what you offer.
• Business meetings that revolve around price, not value.
• Feedback like “you do the same thing as everyone else.”

These are clear signs that it’s time to revisit your canvas.

Strategic adjustments that make a difference

The Value Proposition Canvas is not a fixed document, but a living compass. You should update it whenever:

• Change the ideal customer profile;
• Launch new products;
• Feel a drop in campaign conversions;
• Observe changes in consumer behavior.

Small changes, such as changing the tone of communication or including a previously omitted benefit, can have a big impact on performance.

Advanced tips for continually refining your proposal

Want to make your canvas even more powerful? Use these features:

• Empathy maps: delve deeper into what the customer feels, says, does and thinks.
• Qualitative research: interview customers and leads to validate hypotheses.
• AI Tools: Use insights from tools like Google Trends, AnswerThePublic, or generative AI to uncover real audience questions and pain points.

“A powerful Value Proposition Canvas is born from active listening and constant refinement based on real data.”

Conclusion: When clarity meets the right customer, the sale flows

The main conclusion of this article is that companies that can communicate clearly the real value they deliver come out ahead. In this sense, the Value Proposition Canvas is much more than a planning tool: it is a strategic lens for deeply understanding your customer and transforming this understanding into positioning, content and sales.

So, if you haven’t structured your canvas yet, now is the time. And if you already have one, review it carefully. After all, every good sale starts with empathy and ends with value.

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FAQ – Frequently Asked Questions about Value Proposition Canvas

1. What is the Value Proposition Canvas?

It is a visual tool that helps align what your company offers with what the customer really needs, feels and wants, divided into two blocks: customer and proposal.

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2. What is the difference between a Value Proposition Canvas and a Business Model Canvas?

The Business Model Canvas is a broad view of the business model; the Value Proposition Canvas specifically delves into the relationship between product and customer.

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3. How do I know if my value proposition is wrong?

If you attract unqualified leads, receive generic objections or have difficulty showing what sets your business apart, your proposal may be misaligned.

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4. How often should I review my Value Proposition Canvas?

Whenever there is a change in target audience, product launch or noticeable drop in marketing and sales results.

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5. Can I use the Value Proposition Canvas in small businesses?

Yes! In fact, small and medium-sized companies benefit even more from clearly defining their proposal, since they need to differentiate themselves with greater precision and focus.

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Image: Freepik