Value Proposition Canvasset he describes as a kind of "plug-in" for your Business Model Canvas, which both gives you the opportunity to go into more detail in describing your Value Proposition, and ensure that there is a connection between the business model, your customer segment and your Value Proposition.

The Value Proposition Canvasset works like this

The model is divided into two parts. A customer part and a product part that both correspond to the corresponding parts in your Business Model Canvas.

To use the model, you must start in the model's customer page.

Describe your customer segment

1. Consider what "jobs" they have that need to be solved. What is it that they want to get done? Eg,. then a phone must be able to make calls, send text messages, take pictures, etc.
2. What "pains" do they experience. What frustrates them, what costs do they experience, time, budget, etc. For phones, battery life, price, unmanageable subscriptions, poor image quality, etc. are potential pains, for example.
3. What gains do they want to experience? What do they expect? (From e.g. the product's design, service, etc.) E.g. nice design, prestige, having the latest phone, easy to use etc.

A good exercise is to prioritize these three elements. Which jobs, pains and gains are most important to your customer?

These are the things you can OBSERVE. The things you see, your potential customer segment does, thinks, experiences etc.

Design your value proposition

You then start to DESIGN your value proposition.

1. Products and services. The products and services the company has (or can potentially develop) to solve customer "jobs".
2. Pain relievers. How do your products and services alleviate the pains your customers experience?
3. Gain Creators. How do your products help create value/gains for your customers

Make sure that your pain relievers match (the most important of) your customers' pains and that your products and/or services match your customers' most important gains.

After that, you have to go out and test whether your picture of yours customer segment holder. You then adapt your value proposition, depending on the results you get.

If you have several customer segments, you can design a value proposition for each of these.

An iterative process to develop your business

To keep your company and its business model healthy and profitable, this development of not only the Value Proposition but also your entire business model is a continuous process. Repeat the process regularly and each time develop several different models. And choose the best one.