Title: Measuring the Value of Your Product | Phase2 Technology
Headings: Measuring the Value of Your Product
Measuring the Value of Your Product
Measuring Value by Profit
Measuring Value by Market Position
Measuring Value by Utility
Measuring Value through Customer Perception
Defining Value Collaboratively
Define Value Based on What Matters to You
Metrics to Start With
Revenue
Cost Savings
Customer Acquisition
Customer Retention
User Engagement
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Tags:
Application Development

Content: As with profitability, a product’s market share does not necessarily translate into high value. Microsoft Windows is a perfect example of this. In the early 2000’s, Windows held 97% of the operating system market because there were not many options available. Within the next ten years their market share dropped to about 20% because better, mobile-friendly options were introduced. This decline does not necessarily correlate to a decrease in the value of Windows, however. Measuring Value by Utility
Consumers stay loyal to products that they can apply in their life in a meaningful way. Utility of a product can be measured through a number of quantitative research methods and competitor comparative studies. Measuring Value through Customer Perception
Your product is a large part of your brand, so the way customers view your product reflects how they view your organization. Measuring customer perception of your product, as with measuring utility, gives you a good quantitative metric that can be measured over time and compared to your competitors. The other benefit of measuring customer perception is there are a number of existing frameworks can be adopted, such as Net Promoter Score.