Customer Benefit Analysis

Improve revenue opportunities by identifying the tangible and intangible economic benefits of your software-enabled solution.

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What is Customer Benefit Analysis?

Customer Benefit Analysis answers two critical questions that directly impact revenue and profitability:

What are the tangible and intangible benefits of our solution?
What is the economic value of these benefits to the customer?

Customer Benefit Analysis is a foundational part of Profit Stream Design, guiding crucial decisions regarding pricing, positioning, packaging, and product backlog prioritization.

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An enjoyable, customer-centric approach to defining economic value, Customer Benefit Analysis is an ongoing activity that effective organizations use throughout the entire solution lifecycle.

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In new solution development, Customer Benefit Analysis is used to:

Identify the most promising ideas.
Guide development to create profitable solutions by focusing on features that create the most value.
Create marketing and sales materials that promote the benefits customers will receive.

After the solution is launched, Customer Benefit Analysis helps organizations:

Prioritize new features and feature enhancements.
Adjust pricing and packaging choices to enhance profitability
Respond to competitive threats

Customer Benefit Analysis has a positive impact on the entire organization – everyone can see how their work helps customers succeed!

How does a Customer Benefit Analysis Engagement work?

While every engagement is tailored to your needs, a Customer Benefit Analysis engagement will typically include one or more of the following activities:

Identifying the customer segments your targeting
Developing Benefit Cards that capture tangible and intangible benefits
Organizing Benefit Cards into a Value System
Establishing patterns of minimum value
Identifying when a solution may be providing ‘too much’ value
Categorizing direct and indirect benefits on a segment basis
Developing a Solution Benefit Map to help define packages and bundles
Conducting market research to identify which features are needed to create the desired benefits

We’ll help you determine the specific mix of activities based on your needs.

Where can I learn more?

Customer Benefit Analysis is introduced and detailed in Software Profit Streams: A Guide to Designing a Sustainably Profitable Business the Amazon Bestselling book by Jason Tanner & Luke Hohmann. Learn more about the book, the Profit Stream Canvas, and how you can increase profit at any stage of the solution lifecycle through Solution Profitability Management.