UNIT III APPLIED DESIGN THINKING TOOLS

Concept of Minimum Usable Prototype [MUP] – MUP challenge brief – Designing & Crafting the value
proposition – Designing and Testing Value Proposition; Design a compelling value proposition; Process,
tools and techniques of Value Proposition Design

What is an MUP?
A common mistake is equating Minimum Usable Product (MUP) with MVP. Here are the key
differences: in the case of MVP, we are still learning about the customer needs and our value proposition.
On the other hand, Minimum Usable Product or MUP is a development technique to be used when
we already know what the customer needs. We build an MUP so that the customers can use the product
for the purpose it was intended.
MUP advantages
An MUP has several advantages such as:

Things you should know about MVP, MLP, and MUP:

Starting a business with a product idea without conducting adequate research is a recipe for disaster. The
software development industry, at one time, relied heavily on building small pieces of the working
software, aka prototypes, before allocating resources in the form of time and money.
But with time and innovation, intelligent ways of building new products came into existence. Today,
we’ll discuss three such ways and learn how they are different from each other. These are:
 MVP: Minimum Viable Product
 MLP: Minimum Lovable Product
 MUP: Minimum Usable Product
Minimum Viable Product (MVP)
MVP is an early-stage product idea that helps the company in exploring the market for the proposed
product. In the software development industry, MVP plays a crucial role in agile development, where
the idea is to continuously improve the software to align it with the end users’ expectations.
The reason behind the mass adoption of the MVP concept is that it helps in saving time and money.
The company allocates resources only when the product resonates with the users. And also identifies
what does and does not work in the target market.
MVP works well where the company does not know the type of functionality the customer is seeking.
The product is developed based on the feedback received from the customers at every stage of the
iteration.

Advantages of MVP
 It helps the product owners only focus on core functionalities instead of redundant
functionalities that they might have to remove later.
 It helps in the quick launch as the focus is only on the core functionality. Once the users start
giving their feedback, new features are released with a faster turnaround based on their
demand.
 The obvious and most fruitful benefit of MVP is that it allows building new products with
minimal risk. Large scale and enterprise-level applications require money and efforts to
develop, and still, there are chances of the app becoming outdated. MVP overcomes this
challenge effortlessly.
  Minimum Lovable Product (MLP)
 Customer happiness is central to the MLP concept. As the name suggests,
MLP offers customers the functionality that will make them fall in love
with the product.
 Companies use MLP to stand out from the noise. Customers today have
many options, and when their experience with the product is not
satisfactory, they will quickly move to a better alternative.
 With every iteration, a new feature that will leave customers happy is
released.

The difference between MVP and MLP is that the former focuses on delivering basic features for a quick
product launch and the latter focuses on creating a product with features that the customers will adore.
Like, Jeff Bezos started Amazon by selling books online. He saw the issues faced by booklovers and
solved the problem by delivering books to their homes. Booklovers fell in love with the website, and
today the business is worth over three hundred billion dollars.
Advantages of MLP
 It is a client-oriented approach where the end product is based on customer needs. Hence,
attracting a high user-conversion rate.
 The product enjoys a competitive advantage because customers get the exact features they
were seeking.
Minimal Usable Product (MUP)
MUP is a new type of product development strategy in the market. The focus is on giving customers a
simple, usable product and adding new features based on feedback.
Any product qualifies as an MUP if:
 the product is easy to make,
 it is the simplest product a user will buy,
 and there is a large market for the product.
While MUP focuses on the usability of a product, MLP is more concerned about whether
people want the product.
Under MVP, the company is still learning about the value proposition and the customer needs, which is
not the case in MUP.
The world-famous vacation rental platform Airbnb is the perfect example of a minimum usable product.
They knew that people were looking for pocket-friendly places to live while traveling. They tested the
idea by putting up their apartment for a rental by creating a minimalist website with images of the place.
There are many other minimum products.
With time and need, different types of minimum products have come into existence like minimum
marketable product (MMP), minimum development product (MDP), minimum sellable product (MSP),
etc. Product owners choose the option which falls in line with their idea and vision of product
development. This blog was my experience working with those three minimum product types. You can
share your experience with different minimum products with us here.

DESIGNING AND CRAFTING THE VALUE PROPOSITION:

Value Proposition Design is the process of crafting a compelling and clear statement that
explains how a product or service solves customers' problems, improves their situation, delivers specific
benefits, and communicates why it is better than the competition. It is a fundamental part of a business's
marketing strategy and is critical in attracting and retaining customers.
Key Aspects of Value Proposition Design:
Customer Understanding: Starts with in-depth knowledge of the target audience's needs,
pains, desires, and behaviours. Involves empathizing with customers to truly grasp what drives them.
Problem-Solution Fit: Clearly defines the problem or need that the product addresses. Describes how
the product or service provides a solution to this problem.
Benefits and Features: Identifies and articulates the benefits that the product brings to the customer.
Differentiates between features (functional attributes) and benefits (value and advantages derived by the
customer).
Differentiation and Unique Selling Proposition (USP): Clearly states what makes the product or
service unique and why it stands out in the market. Focuses on the unique value the product provides
that competitors do not.
Clarity and Simplicity: The value proposition should be easily understood and concise. Avoids
technical jargon and focuses on how the product improves the customer's life or solves their problems.
Evidence and Credibility: Supports the value proposition with evidence such as customer testimonials,
data points, case studies, or expert endorsements. Builds trust and credibility with the target audience.
Importance in Product Development:
Certainly, let's explore in detail the importance of Value Proposition Design in product development and
business strategy:
1. Guides Product Development
Aligns with Market Needs: Value Proposition Design ensures that product development is closely
aligned with what customers actually need and value. By understanding and focusing on these needs,
companies can develop products that are more likely to succeed in the market.
Prioritization of Features: It helps in determining which features are most crucial to the target audience,
guiding the prioritization in the development process.
2. Enhances Marketing and Communication
Clear Messaging: A well-defined value proposition provides a foundation for all marketing and
communication efforts. It articulates clearly what the product does and why it matters, making it easier
to craft effective marketing messages.
Differentiates in the Market: In a competitive market, a strong value proposition helps to differentiate
the product from its competitors, highlighting why it's a better choice for the target audience.
3. Improves Customer Understanding and Engagement
Customer-Centric Approach: Value Proposition Design focuses on understanding and addressing the
customer's problems and needs, fostering greater customer engagement and satisfaction.
Builds Customer Relationships: By clearly communicating how a product can solve a user's problem or
improve their situation, companies can build stronger, more meaningful relationships with their
customers.
4. Facilitates Sales and Conversion
Sales Enablement: A clear value proposition equips sales teams with a strong, concise message about
the product's benefits, making it easier for them to communicate its value to potential customers.
Increases Conversion Rates: Customers are more likely to purchase a product if they clearly understand
how, it benefits them. A compelling value proposition can therefore directly impact conversion rates and
sales.
5. Builds Brand Reputation
Trust and Credibility: By delivering on its value proposition, a company can build trust and credibility
in its market. This enhances the overall reputation of the brand.
Consistent Brand Message: A value proposition that is echoed across all platforms and interactions
contributes to a consistent brand message, reinforcing the company’s identity and values.

6. Informs Strategic Decision Making

Business Strategy Alignment: The value proposition is a key element in broader business strategy,
helping ensure that various aspects of the business are aligned towards delivering the promised value.
Market Positioning: It plays a crucial role in how a product is positioned in the market, influencing
pricing strategies, target audiences, and marketing channels.
Sample Value Proposition for our Journal App with Mood Tracking Feature
Headline: "Transform Your Emotional Well-being with our journal app - Your Personal Mood Tracker
and Journaling Companion"
Sub-headline: "Empower your journey towards mental wellness with insightful mood tracking and
personalized journaling - all in one intuitive app."
Key Points of the Value Proposition:
Customer Problem and Need: Many individuals struggle to understand and manage their emotional
well-being due to lack of awareness and tools.
Solution Offered: App offers an innovative mood tracking feature that allows users to record, track, and
analyse their emotional states over time. Combined with a user-friendly journaling platform, it provides
a comprehensive tool for emotional self-awareness and management.
Benefits for the User:
Increased Self-Awareness: Understand your emotional patterns and triggers for better mental health.
Easy Tracking and Analysis: With just a few taps, monitor your mood swings and get insights into your
emotional well-being.
Personalized Journaling Experience: Customize your journaling experience to reflect on your day,
express thoughts, and track progress.
Supports Mental Health Journey: Whether you’re dealing with stress, anxiety, or just looking to
understand yourself better, App is your go-to companion.
Differentiation: Unlike other journaling apps, App integrates mood tracking with journaling, offering a
unique blend of emotional tracking and personal expression. Utilizes advanced analytics to provide users
with meaningful insights into their emotional health.
Credibility and Evidence: Developed in collaboration with mental health professionals. Trusted by
thousands of users with positive testimonials on its impact on their mental wellness journey.
Call to Action: "Start your path to emotional clarity today. Download 'App' and take the first step towards
a happier, healthier you."
 DESIGNING & TESTING VALUE PROPOSITION:
As an early-stage startup, you need to communicate your value proposition and messaging to your
potential and existing users in a clear and compelling way. But how do you know what resonates with
different user segments, and how do you test and refine your assumptions? In this article, we will cover
some practical steps and tools to help you design and test your value proposition and messaging for
different user segments.
1)Identify your user segments
Before you can design and test your value proposition and messaging, you need to identify who your
target users are and what their needs, goals, and pain points are. You can use various methods to segment
your users, such as demographics, behaviour, psychographics, or jobs-to-be-done. The key is to find
meaningful and relevant criteria that help you understand and empathize with your users. You can use
tools like user personas, customer journey maps, or empathy maps to document and visualize your user
segments.
A product should be built, or a service should be designed to address some common pain points across
different user segments. That is the first step in understanding and designing the value proposition.
2)Define your value proposition
Your value proposition is the core promise that you make to your users, and it should answer the
question: why should they choose your solution over others? Your value proposition should be concise,
specific, and unique, and it should highlight the benefits and outcomes that your users can expect from
your solution. You can use tools like the value proposition canvas or the lean canvas to define and
communicate your value proposition for each user segment.
Define your product or service's core value proposition. The ability to create a concise statement that
articulates the core benefit you offer and how it differentiates you from competitors is priceless. Focus
on your product or service's benefits, not just the features. Explain how those benefits address the specific
pain points of your target users/customers.
Once you design your product/ services around the pain points, designing the message and testing your
value proposition becomes easier. you need to step into the shoes of the customer, empathize with them
and then define your value proposition.
Stubbornness makes us persevere. It helps us stand our ground when everyone else is trying to tell us
that we are wrong. Used with discernment, stubbornness can be a strong leadership quality and a key
determinant of success. Because stubborn people know what they want, they tend to be more decisive.
3)Craft your messaging
Your messaging is the way you express your value proposition to your users, and it should capture their
attention, interest, and desire. Your messaging should be tailored to each user segment, and it should
address their specific needs, goals, and pain points. You can use tools like the message hierarchy or the
copywriting pyramid to craft your messaging for each user segment, and you should consider the tone,
voice, and style that best suit your brand and audience.
It always helps to know who your competitors are in your space, even if your model is truly unique.
Choose 3 of the closest competitors to analyze that you admire. Review their websites, investor info,
social media, email marketing and press releases. What do you notice about their messaging? Put
yourself in the target market’s shoes. This can be a customer or an investor, or both. What doesn’t work
about the messaging? What would you change? What is strong? Sometimes this analysis of your
competitors gives you fresh perspective on your own messaging and helps to highlight what to do (or
not to do) and where you need work.
4)Test your value proposition and messaging
Once you have designed your value proposition and messaging, you need to test them with your users
to validate your assumptions and learn from their feedback. You can use various methods to test your
value proposition and messaging, such as surveys, interviews, landing pages, ads, or email campaigns.
The key is to define a clear hypothesis, a measurable metric, and a minimum success criterion for each
test, and to iterate based on the results. You can use tools like Google Forms, Typeform, Unbounce,
Mailchimp, or Facebook Ads to run and analyze your tests.Before designing full-scale external tests, it
can be helpful to employ smaller scale validation tests to understand if your proposed value propositions
and messaging are directionally accurate. Some tactics might include: - Previewing a shift to your
customer facing teams like account management or support - Inviting feedback from a group of
supportive customers as part of a customer advisory board or beta testing group - Validating messaging
with industry-members like analysts or associations.
5)Learn from your tests
The final step is to learn from your tests and use the insights to improve your value proposition and
messaging. You should review your data and feedback, and look for patterns, trends, and surprises. You
should also compare your results with your hypothesis, metric, and success criterion, and evaluate
whether you have validated, invalidated, or learned something new about your value proposition and
messaging. You should use tools like Google Analytics, Hotjar, or Mixpanel to track and visualize your
data and feedback.
6)Iterate and optimize
The process of designing and testing your value proposition and messaging is not a one-time event, but
a continuous cycle of learning and improvement. You should always look for opportunities to iterate and
optimize your value proposition and messaging based on your user segments, their needs, goals, and
pain points, and their feedback and behavior. You should use tools like A/B testing, multivariate testing,
or split testing to experiment with different variations of your value proposition and messaging, and
measure their impact on your user acquisition and retention.
Value Proposition Design is a crucial part of developing products or services that resonate with
customers. The process focuses on understanding customer needs and creating value propositions that
address those needs effectively. Here’s an overview of the process, tools, and techniques involved in
Value Proposition Design:
1. Understanding the Process:
 Customer Discovery: This initial phase involves identifying and understanding the target
customers and their problems, needs, and desires. Techniques such as customer interviews,
surveys, and observation are used to gather insights.
 Value Proposition Canvas: This is the core tool in Value Proposition Design. It helps in
mapping out the relationship between customer segments and the value propositions that the
product or service offers. The canvas has two main components:
o Customer Profile: This includes customer jobs (what they are trying to get done),
pains (challenges or problems they face), and gains (the benefits they seek).
o Value Map: This outlines how your product or service creates value for the customer
by addressing their pains and enhancing their gains.
2. Tools and Techniques:
 Value Proposition Canvas:
 o Customer Jobs: Identify what the customer is trying to accomplish in their work or
life.
o Pains: List the negative experiences, risks, and obstacles your customers face.
o Gains: Determine the benefits your customers expect, desire, or would be surprised
by.
o Pain Relievers: Detail how your product or service alleviates customer pains.
o Gain Creators: Explain how your product or service creates customer gains.
 Empathy Mapping: Helps teams build a deeper understanding of customers by exploring
what they think, see, hear, and feel.
 Prototyping: Creating early versions of a product or service to test assumptions and gather
feedback.
 Testing and Iteration: Engage with customers to test your value propositions, gather
feedback, and iterate on your ideas to refine them.
 Market Research: Conduct surveys, focus groups, and competitive analysis to validate your
assumptions and understand market trends.
3. Techniques to Enhance Value Proposition:
 Customer Journey Mapping: Visualizing the customer’s entire experience with your
product or service, from initial awareness to post-purchase.
 A/B Testing: Experimenting with different versions of a product or service to see which
performs better in the market.
 Lean Startup Methodology: Building a minimal viable product (MVP) to test hypotheses
quickly and learn from customer feedback.
 Storytelling: Crafting narratives that connect your value proposition to the emotional and
functional needs of your customers.
 SWOT Analysis: Assessing the strengths, weaknesses, opportunities, and threats related to
your value proposition to ensure it stands out in the market.
4. Implementation:
 Alignment with Business Model Canvas: Ensuring that the value proposition is aligned with
the overall business model, including revenue streams, customer segments, and key activities.
 Communication and Marketing Strategy: Developing a clear communication strategy that
effectively conveys the value proposition to the target audience.
5. Common Challenges and Solutions:
 Assumption Validation: Use lean methods to test and validate assumptions early to avoid
building products that do not resonate with customers.
 Iterative Design: Embrace iteration and be prepared to pivot if customer feedback indicates
a need for change.
Value Proposition Design is a dynamic process that requires continuous interaction with customers,
iterative design, and alignment with the broader business strategy. By utilizing these tools and
techniques, businesses can create compelling value propositions that meet customer needs and stand out
in the marketplace.
 DESIGNING A COMPELLING VALUE PROPOSITION
A compelling value proposition clearly communicates the benefits of your product or service, how it
solves a problem or fulfils a need, and why it is better than the competition. The process of creating a
value proposition involves understanding your customers, analysing competitors, and aligning your
offering to meet specific needs.
Process of Value Proposition Design
1. Customer Segmentation
o Identify Target Audience: Start by understanding who your customers are. Segment
them based on demographics, behaviours, needs, and pain points.
o Empathy Map: Develop empathy maps to visualize what customers think, feel, say,
and do. This helps in understanding their motivations and frustrations.
2. Value Mapping
o Customer Jobs: Identify what your customers are trying to achieve in their personal
or professional lives. These can be functional, social, or emotional jobs.
o Pains: Determine the negative experiences or risks that customers encounter while
trying to get their jobs done.
o Gains: Recognize the outcomes or benefits that customers desire when successfully
completing a job.
3. Designing the Value Proposition
o Pain Relievers: Outline how your product or service alleviates the customer pains. Be
specific about how it reduces or eliminates the challenges they face.
o Gain Creators: Explain how your offering creates value and delivers the benefits your
customers are looking for.
o Product & Services: Clearly describe what you are offering to the customer. Include
features, pricing, and any other relevant details.
4. Validation and Testing
o Prototyping: Create a prototype or mock-up of your value proposition and test it with
a small segment of your target audience.
o Customer Feedback: Collect and analyse feedback to refine your value proposition.
Ensure it resonates with the customers and addresses their needs effectively.
5. Iterative Refinement
o Adapt and Evolve: Continuously iterate on your value proposition based on customer
feedback, market trends, and competition. Ensure it remains relevant and compelling.
Tools and Techniques for Value Proposition Design
1. Value Proposition Canvas
o Tool: The Value Proposition Canvas by Strategyzer is a powerful tool for designing,
testing, and refining your value proposition. It consists of two main parts: the
Customer Profile (Jobs, Pains, Gains) and the Value Map (Products & Services, Pain
Relievers, Gain Creators).
 2. SWOT Analysis
o Technique: Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities,
Threats) to understand your position in the market and identify areas where your value
proposition can stand out.
3. Competitor Analysis
o Tool: Use competitor analysis frameworks like Porter’s Five Forces or benchmarking
tools to assess how your offering compares with others in the market.
4. Empathy Mapping
o Technique: Empathy mapping is a technique to visualize customer thoughts, feelings,
and behaviors. It helps in designing value propositions that deeply resonate with
customer needs.
5. A/B Testing
o Tool: Use A/B testing to validate different versions of your value proposition with real
customers. This helps in identifying which version is more effective.
6. Customer Journey Mapping
o Technique: Map out the customer journey to identify key touchpoints where your
value proposition can make the most impact. This helps in aligning your messaging
and offering with the customer experience.
Example of a Compelling Value Proposition
For a cloud storage service:
 Headline: “Store, Access, and Share Your Files Seamlessly from Anywhere.”
 Subheading: “Our cloud storage solution offers unlimited space, advanced security, and real-
time collaboration tools, so you can focus on what matters.”
 Key Benefits: Unlimited storage, state-of-the-art security, seamless integration with existing
tools, accessible from any device, and real-time collaboration features.
 Call to Action: “Start Your Free Trial Today!”
This process and these tools will help you create a value proposition that effectively communicates the
unique value your product or service provides to your customers.