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: The plus side to this approach is that it is concrete and quantifiable. You can measure the profit consistently throughout the life of the product, charting changes in value over time. Profit is also a metric everyone understands, as it is the most common unit of measuring the success of a business. There are some clear drawbacks to this approach, though: This metric focuses solely on the benefit to the business, not the user. There are many external factors that can impact profitability, which skews the accuracy of this metric in determining value. Not all products generate revenue. Common examples are informational websites, internal collaboration software, and FOSS (free and open source software) projects. Measuring Value by Market Position
Another common metric to demonstrate a product’s value is market position. Looking at the sheer volume of the market your product holds over competitors can give a real picture of the way consumers view the product.