Saturday Brain Storming Thought (214) 16/03/2024
PRODUCT VALUE
Product Value is the benefit that a customer gets by using a product to satisfy their needs, minus associated costs
Product Value is a measure of a products ability to meet and address customers needs
Value of a product to customers can inform a products development roadmap
Product Value Proposition
A product value proposition summarizes why a customer would choose your product over any other
It is a succinct statement that reveals the value customers will enjoy when they buy from your company, use your product and interact with your team
A product value proposition is typically an output of the overall business strategy
Product focused questions
1) What does it do?
2) How does it look and feel?
3) What unmet need does your product fill?
4) What is the benefit to choosing your product over others?
Customer focused questions
1) What is the problem you are trying to solve?
2) How are you currently solving this problem?
3) What arecthe practical criteria for choosing a new solution?
4) What emotions drive purchase decisions?
5) What will you loose by not buying?
Company focused questions
1) What policies impact buying?
2) How do we support the user post-purchase?
3) What other products or services do we offer?
Product Value Statement
A product value statement encapsulates exactly what makes your product special
Company-led product value proposition
(Company) helps (target audience) (Solve X challenge) with (features offered)
Customer-led product value proposition
(Target audience) use (features offered) to (solve problem) with (product name)
Types of product value
1) Functional value
2) Monetary value
3) Social value
4) Psychological value
With a customer’s wants and resources (financial ability), they demand products and services with benefits that add up to the most value and satisfaction
Ways to improve product value
1) Add new product features that improves user experience
2) Improve product packaging and design
3) Improve customer onboarding
4) Continue to innovate
5) Refine after-sales service
6) Increase speed of product delivery
7) Offer experts advice
Examples of product value
Product Value naturally varies from product to product
1) Availability
Customers can access the product online or offline
2) Convenience
The product is available on multiple devices, including mobile
3) Speed
The product does it’s job quickly with no lag or delay
4) Cost
The product is more affordable than its competitors
Identifying product value
1) You can identify product value by reviewing product analytics and letting the data to do talking
2) Customer feedback
3) publish NPS surveys to assess the core value proposition as your customer see it
Metrics for measuring product value
1) MRR
Monthly recurring revenue is a key matric
2) Retention
High retention rate shows that customers are continuing to derive value fyom your product after signup
Customers have made using your product a habit and can pinpoint it’s benefits
3) Churn
Low churn rate generally indicates that your product is solving a key business need and maintaining a competative advantage
4) LTV
Life time value helps you understand how your product performs over time
When LTV is high, it’s asign that you are able to deliver long-term value to your customers
Powerful product presentations
1) Create a memorable first impression
2) Build trust and long-lasting client relationships
3) Stand out from the competition
4) Boost sales and revenue
Need in a product presentations
1) Introduction
2) Company overview
3) The problem
4) Product and solution
5) Promise of value or benefits
6) Product positioning
7) Use cases and social proofs
8) Call to action
9) Conclusion
Product Value scorecard
1) Population
How many customers will this team impact?
2) Need
How important is it for those who require it?
3) Strategy
How closely connected is this work to your company and product strategy?
4) Effort
How much work will it take to build?
5) Confidence
What is your level of confidence in each score above?
Illustrative examples of product value
1) Functionality
2) Features
3) Usability
4) Convenience
5) Customization & control
6) Realibility
7) Availability
8) Refinement
9) Sustainability
10) Fault tolerance
11) Packaging
12) Safety
13) Health
14) Taste
15) Decor
16) Location
17) Style
18) Efficiency
19) Resilience
20) Customer service
21) Social
22) Compatibility
23) Performance
24) Durability
25) Accuracy
26) Entertainment
27) Engagement
28) Preferences
29) Reputation
Product Value Area
1) Product development
2) Marketting
3) Pricing
4) Design
Concepts realated to product value
1) Quality
2) Design considerations
3) Principle of least astonishment
4) Product development
5) Usability
6) Customer motivations
COMPILED BY:-
Er. Avinash Kulkarni
9822011051
Chartered Engineer, Govt Regd Valuer, IBBI Regd Valuer
