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:
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Need to know the customer’s perception of the value of your product — not your guess at it,
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Make better product decisions and waste less money when you have the ability to accurately estimate the customer value of new features,
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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.
