Market Positioning Series

Value Proposition Canvas

The Value Proposition Canvas helps you design products customers actually want. Learn how to achieve product-market fit by mapping customer needs to your offering.

By Vik ChadhaJanuary 12, 202615 min read

The Value Proposition Canvas is a strategic tool that helps you ensure your product or service fits what customers actually need. Developed by Alex Osterwalder and the Strategyzer team, it's a companion to the Business Model Canvas and has become the go-to framework for achieving product-market fit.

This guide is part of our Market Positioning series. We'll walk you through the complete framework with real examples from companies like Uber, Airbnb, and Slack.

What Is the Value Proposition Canvas?

The Value Proposition Canvas is a visual framework with two sides that must fit together:

Customer Profile (Right Side)

  • Customer Jobs: Tasks they're trying to accomplish
  • Pains: Frustrations, obstacles, risks
  • Gains: Desired outcomes and benefits

Value Map (Left Side)

  • Products & Services: What you offer
  • Pain Relievers: How you reduce pains
  • Gain Creators: How you create gains

The Goal: Achieve Fit

"Fit" happens when your Value Map (what you offer) directly addresses the most important elements in your Customer Profile (what they need). The stronger the fit, the more likely customers will choose you over alternatives. This is the foundation of product-market fit.

Customer Profile: Understanding Your Customer

The Customer Profile is the most important part of the canvas. Get this right, and everything else follows. Get it wrong, and you'll build something nobody wants.

Customer Jobs

Jobs are what customers are trying to accomplish in their work or life. There are three types:

Functional Jobs

Practical tasks customers want to accomplish

  • Create a professional logo
  • Build brand guidelines
  • Design marketing materials

Social Jobs

How customers want to be perceived by others

  • Look credible to investors
  • Appear professional to clients
  • Stand out from competitors

Emotional Jobs

How customers want to feel

  • Feel confident about their brand
  • Feel proud of their business identity
  • Feel secure in their market position

Customer Pains

Pains are anything that annoys, frustrates, or prevents customers from getting their jobs done:

Undesired Outcomes

Things that frustrate customers or make them feel bad

Brand looks unprofessionalWasted money on bad designInconsistent brand across channels

Obstacles

Things that prevent customers from getting started or slow them down

Design agencies are too expensiveProcess takes too longDon't know where to start

Risks

Potential negative outcomes customers worry about

Making wrong design choicesLooking like competitorsNeeding to rebrand later

Customer Gains

Gains are the outcomes and benefits customers want. They range from basic expectations to delightful surprises:

Required Gains

Minimum expectations without which the solution won't work

  • Logo files in usable formats
  • Brand colors that work together
  • Professional quality output

Expected Gains

Basic gains customers expect, even if not explicitly stated

  • Reasonable turnaround time
  • Ability to make revisions
  • Clear brand guidelines

Desired Gains

Gains that go beyond expectations—customers would love to have these

  • Complete brand kit in one place
  • Marketing templates included
  • Professional results without design skills

Unexpected Gains

Gains customers don't even know they want until you offer them

  • AI-powered instant generation
  • One-click social media assets
  • Automatic brand consistency checks

How to Fill Out the Canvas: Step-by-Step

1

Start with Customer Jobs

List all the tasks your customer is trying to accomplish. Include functional, social, and emotional jobs. Rank them by importance to the customer.

Interview real customers. Ask: "What are you trying to accomplish? What does a good day look like?"

2

Identify Customer Pains

List everything that annoys, frustrates, or prevents your customer from getting their jobs done. Include obstacles, risks, and undesired outcomes.

Ask: "What makes this task difficult? What do you worry about? What keeps you up at night?"

3

Map Customer Gains

List the outcomes and benefits your customer wants to achieve. Include required, expected, desired, and unexpected gains.

Ask: "What would make you happy? What would exceed your expectations? What would be a dream outcome?"

4

List Your Products & Services

List everything you offer that helps customers get their jobs done. Be specific about features and capabilities.

Focus on what you actually deliver, not marketing claims. Be honest about your current capabilities.

5

Define Pain Relievers

Describe how your products and services eliminate or reduce customer pains. Be specific about which pains you address.

Not every pain needs to be addressed. Focus on the most important pains for your target customer.

6

Describe Gain Creators

Describe how your products and services create customer gains. Be specific about which gains you enable.

The best value propositions create unexpected gains that delight customers.

7

Check for Fit

Compare your Value Map to your Customer Profile. Do your pain relievers address real pains? Do your gain creators enable real gains?

Strong fit = your solution addresses the most important jobs, pains, and gains. Weak fit = you're solving problems customers don't care about.

Real-World Examples

Let's look at how successful companies would fill out their Value Proposition Canvas:

Uber

Customer Profile

Jobs:

  • Get from A to B quickly
  • Arrive on time for meetings
  • Travel safely at night

Pains:

  • Waiting for taxis in bad weather
  • Not knowing if/when cab will arrive
  • Carrying cash, negotiating fares
  • Safety concerns with unknown drivers

Gains:

  • Predictable arrival times
  • Cashless payment
  • Know driver details in advance
  • Track ride in real-time

Value Map

Products & Services:

  • Mobile app
  • GPS tracking
  • Driver network
  • Rating system
  • Cashless payment

Pain Relievers:

  • See car location in real-time
  • Upfront pricing
  • Driver ratings and photos
  • Automatic payment

Gain Creators:

  • ETA shown before booking
  • Receipt sent automatically
  • Share ride status with friends
  • Rate drivers for quality

Fit Analysis: Strong fit—every major pain is addressed, and gains exceed taxi alternatives

Airbnb

Customer Profile

Jobs:

  • Find accommodation for travel
  • Stay somewhere comfortable
  • Experience local culture

Pains:

  • Hotels are expensive
  • Hotels feel generic/impersonal
  • Hard to find places in residential areas
  • Trust issues with strangers' homes

Gains:

  • Save money on accommodation
  • Unique, authentic experiences
  • Feel like a local
  • More space than hotels

Value Map

Products & Services:

  • Listing platform
  • Booking system
  • Review system
  • Host verification
  • Messaging

Pain Relievers:

  • Price comparison with hotels
  • Verified hosts and reviews
  • Photos and descriptions
  • Secure payment protection

Gain Creators:

  • Local recommendations from hosts
  • Unique properties (treehouses, castles)
  • Kitchen and living space
  • Neighborhood immersion

Fit Analysis: Strong fit—transforms accommodation from commodity to experience

Slack

Customer Profile

Jobs:

  • Communicate with team
  • Find information quickly
  • Collaborate on projects

Pains:

  • Email overload
  • Can't find old conversations
  • Too many tools to check
  • Remote team feels disconnected

Gains:

  • Quick responses
  • Organized conversations
  • All communication in one place
  • Team feels connected

Value Map

Products & Services:

  • Channels
  • Direct messages
  • Search
  • Integrations
  • File sharing

Pain Relievers:

  • Searchable history
  • Channels reduce email
  • Integrations consolidate tools
  • Async-friendly communication

Gain Creators:

  • Real-time messaging
  • Organized by topic
  • Custom emoji and GIFs for culture
  • 2,000+ app integrations

Fit Analysis: Strong fit—addresses the core pain of email overload while creating new gains around team culture

Common Mistakes to Avoid

Starting with Your Product

Building the Value Map before understanding the Customer Profile. Always start with the customer.

Fix: Complete the entire Customer Profile (right side) before touching the Value Map (left side).

Listing Features Instead of Jobs

Confusing what your product does with what customers are trying to accomplish.

Fix: Customer jobs should be written from the customer's perspective, not yours. "Create a logo" not "Use our logo generator."

Not Prioritizing

Trying to address every job, pain, and gain equally. You can't do everything well.

Fix: Rank jobs, pains, and gains by importance. Focus your value proposition on the top 3-5 in each category.

Assuming Instead of Validating

Filling out the canvas based on assumptions without talking to real customers.

Fix: Interview at least 10 customers before finalizing your canvas. Update it based on real feedback.

One-Time Exercise

Creating the canvas once and never updating it as you learn more about customers.

Fix: Review and update your canvas quarterly. Customer needs evolve, and so should your understanding.

Free Value Proposition Canvas Template

Download our free template to create your own Value Proposition Canvas. Includes both the canvas and a worksheet with guiding questions.

Value Proposition Canvas vs. Business Model Canvas

The Value Proposition Canvas is a detailed zoom-in on two blocks of the Business Model Canvas: the Value Proposition block and the Customer Segment block. Use them together:

  • Business Model Canvas: High-level view of your entire business model (9 blocks)
  • Value Proposition Canvas: Deep dive into customer-product fit (detailed view of 2 blocks)

Frequently Asked Questions

What's the difference between Value Proposition Canvas and Business Model Canvas?

The Business Model Canvas is a high-level view of your entire business across 9 building blocks. The Value Proposition Canvas zooms in on just two of those blocks—Customer Segments and Value Proposition—to help you design products that truly fit customer needs. Use the Value Proposition Canvas first to nail product-market fit, then expand to the full Business Model Canvas.

How do I know if I have product-market fit?

Product-market fit happens when your Value Map strongly addresses the most important jobs, pains, and gains in your Customer Profile. Signs of fit include: customers actively seeking you out, high retention rates, organic word-of-mouth growth, and customers getting upset at the thought of losing your product. The Value Proposition Canvas helps you design for fit by making customer needs explicit.

Should I create one canvas per customer segment?

Yes. Each customer segment has different jobs, pains, and gains, so each needs its own Customer Profile. You may have one Value Map that serves multiple segments, or different Value Maps for different segments. Start with your most important customer segment, achieve fit there, then expand to others.

How often should I update my Value Proposition Canvas?

Review your canvas quarterly at minimum, or whenever you learn something new about customers. Customer needs evolve, competitors change, and your understanding deepens over time. The canvas is a living document, not a one-time exercise. Keep validating your assumptions through customer interviews and data.

Can I use this for services, not just products?

The Value Proposition Canvas works equally well for products and services. In the "Products & Services" section, list all the services you offer. The rest of the framework—jobs, pains, gains, pain relievers, gain creators—applies exactly the same way. Service businesses often find it especially useful because it forces clarity about the value they provide.

Ready to Design Your Value Proposition?

Once you've mapped your value proposition, bring it to life with a complete brand identity that communicates your unique value at every touchpoint.

Continue Building Your Brand Strategy

The Value Proposition Canvas is part of your complete brand strategy. Explore these related topics to build a comprehensive positioning system.

Brand Strategy Hub

The Value Proposition Canvas is part of our comprehensive brand strategy framework. Explore positioning, messaging, and brand expression to build a complete strategy.

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Value Proposition & Positioning

How to Write a Value Proposition

Turn your canvas insights into a compelling value proposition statement.

Market Positioning Guide

Complete guide to defining your market position and differentiation strategy.

Competitive Differentiation Guide

Find your unique differentiator that sets you apart from competitors.

Customer Research

How to Create an Ideal Customer Profile

Define your ideal customer to fill out the Customer Profile section accurately.

Customer Pain Points Framework

Deep dive into identifying and prioritizing customer pains.

Customer Journey Mapping Guide

Map the full customer journey to understand all jobs, pains, and gains.

Vik Chadha - Founder & CEO of Magnt | Serial Entrepreneur | Startup Advisor
Vik Chadha

Founder & CEO of Magnt | Serial Entrepreneur | Startup Advisor

Serial entrepreneur and branding expert. As a serial entrepreneur, he has created 20+ startups and products across various industries, from SaaS platforms to consumer applications. Founder of Magnt, advisor to 100+ startups, and thought leader in AI-powered branding. Helps small businesses create professional brands that rival Fortune 500 companies.