The meaning of “customer value” is highly variable — even experienced product owners do not agree on a precise definition. How is it that this concept — central to product management, critical to product success — can be so difficult to pin down? If you are willing to tackle this difficulty head-on, consider that you:
Need to know the customer’s perception of the value of your product — not your guess at it,
Make better product decisions and waste less money when you have the ability to accurately estimate the customer value of new features,
Might theoretically appreciate the value of a product failure, but definitely appreciate the value of a product success.
My colleague, Carlton Nettleton, recently introduced Applied Frameworks’ repackaged Profit Engine Framework, a tool we’ve developed for software businesses to optimize their business practices.
In the video and presentation below, I take a deep dive into defining customer value as it relates to the Profit Engine Framework. I explain how to clearly define, estimate, and validate value through the introduction of a framework to quantify customer value, and I present a case study based on Mailchimp, the popular email software platform.
Video Presentation: Customer Value Analysis
This is the first in a series of videos exploring the Profit Engine Framework. As always, I look forward to your feedback.