What is the Differentiation Canvas?

• The Differentiation Canvas by Product Faculty is a methodological method for defining the product’s Strategy based on Customers Research and Competitors Research.
• This method helps to create a competitive advantage by understanding the product’s unique value for the customers (AKA Unique Selling Proposition).

What are the steps of building the Differentiation Canvas?

• Crystalize the customers research into the main pains and gains (AKA industry factors or Needs)
• Decide on the customer segment (AKA target audience or Persona) you want to focus on
• Define the level of importance your target audience feels towards each factor
• Select the top competitor (or a few at most) from the competitors research, and associate their features into each of the industry factors defined
• Give a score for the competitor for each of the factors (try to be objective and consistent)
• Do the same process for your own product in order to define the current score for each factor
• Identity where your competitors are weak in factors which are important to your target audience (these can be your differentiators)
• Give your product the desired score for each of the factors
• Understand the gap between the current state and the desired state for each of the factors
• The set of factors which are important to your target audience and by answering them it will create a competitive advantage, are your Unique Selling Proposition

Note: see Differentiation Canvas Template