Value Proposition Framework

Strategy Tools Explained - Part 6

The Value Proposition Framework was developed by Alexander Osterwalder in the early 2000s.

🧩Value Proposition Framework:

The Value Proposition Framework distinguishes between Features and Benefits.

A product's features are the technical aspects - what the product does and how it functions.

Benefits are the user's experience - problems that havebee solved or pain that is reduced.


Benefits of the framework:

Value Proposition Framework - Explained


1.Value Proposition Framework - Definitions

🧩 Jobs to Be Done: These are the tasks, problems, or goals that your customer is trying to accomplish. They can be functional (e.g., booking a room) or emotional (e.g., feeling safe).

😣 Pain Points: These are the negative experiences, risks, or obstacles your customer faces while trying to get a job done. This includes frustrations, inefficiencies, or anything they want to avoid.

πŸ’Š Pain Relievers: These are how your product or service reduces or eliminates the customer’s pains.

πŸŽ‰ Gains: These are the benefits or positive outcomes for your customer. Gains can be functional, emotional, or social improvements that add value to their experience.

πŸ“¦ Features (Products & Services): These are the core offerings of your product or service. They form the foundation of your value proposition and enable the pain relievers and gain creators.

Value Proposition Framework1

2. Value Proposition Framework - Example- Uber

πŸ“Œ Section πŸ’¬ Description
🎯 Jobs to Be Done Travel to a destination, quickly and conveniently
😣 Pains πŸš• Taxis are expensive
πŸ•’ Limited availability of taxis – e.g. weekends, late night
⏳ Long waiting times
πŸ’΅ Some taxis require cash payments
πŸ’Š Pain Relievers πŸ• GPS tracking and arrival time of drivers
⭐ Reviews of drivers – makes for safer drivers
πŸŽ‰ Gains πŸ“± Availability 24/7
πŸ’³ Payments handled effortlessly by the platform
πŸ’° Cheaper than conventional taxis
⚑ Speed – fast arrival
πŸ”’ Safety – bad drivers get bad reviews
βŒ› Estimated time of arrival
πŸ“¦ Products & Services πŸ“² Mobile ridesharing app
πŸš— Drivers can choose times and places to drive
πŸ’Έ Revenue shared with drivers
πŸ—ΊοΈ GPS tracking of drivers and time estimations
🌟 Reviews of drivers and users
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3. Value Proposition Framework - Example- AirBnB

πŸ“Œ Section πŸ’¬ Description
🎯 Jobs to Be Done πŸ‘₯ Travelers: Travel that’s affordable, easy & flexible
πŸ’Ό Hosts: Earn extra income, safely & easily
😣 Pains 🏨 Hotels are expensive
πŸ” Changing hotel bookings can be difficult
😐 Hotels are often impersonal
πŸ“‰ Limited hotel availability
⚠️ Private rentals can be risky
πŸ’Š Pain Relievers 🧾 Travelers: Affordable options with flexible terms, secure payments, verified listings
πŸ›‘οΈ Hosts: Insurance coverage, guest reviews for safety
πŸŽ‰ Gains 🧳 Travelers: Personal connections with hosts, reviews increase safety
🌍 Hosts: Reviews of travelers, flexibility in listings
πŸ“¦ Products & Services πŸ“± Platform (mobile and web)
πŸ’³ Secure payment system
πŸ—“οΈ Hosts can choose dates and rates
πŸ” Travelers can filter by date, rate, and location
🌟 Reviews for hosts and travelers
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4. How To Use The Value Proposition Framework

🧭 Step πŸ“‹ Action
πŸ” 1. Identify Customer Segment Define your target customer group e.g. travelers, business users, parents.Focus on one well-defined profile
🧩 2. Describe Jobs to Be Done List what the customer is trying to get done (tasks, problems, or needs)
⚠️ 3. List Customer Pains Identify frustrations, obstacles, or risks they face while doing the job
🎁 4. List Customer Gains Note benefits they expect, desire, or would be surprised by
πŸ“¦ 5. Outline Products & Services List your product's features that support the customer’s goals
πŸ’Š 6. Add Pain Relievers Explain how your product reduces or removes specific pains
πŸŽ‰ 7. Add Gain Creators Highlight how your product has benefits beyond solving problemsenhances experience