Customer value plays a critical role in every software business, and is a concept central to the mission of every Product Owner. Nonetheless, a precise definition eludes most Agile practitioners, even after years of training. There’s a good reason: customer value carries a highly variable definition and is generally a tough concept to master.
Just because something’s difficult doesn’t mean it isn’t worth tackling. Here’s why…
- For any product or service to succeed, customers must perceive the value of the solution provided by the product or service. And you need to understand customer perception.
- Accurately identifying and estimating value drives better product decisions. For example, lacking clarity often leads to building features that customers do not need, or are not willing to pay for.
- Guessing is a strategy for failure.
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.