{"id":76070,"date":"2022-08-15T16:39:00","date_gmt":"2022-08-15T20:39:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=76070"},"modified":"2022-08-22T12:50:36","modified_gmt":"2022-08-22T16:50:36","slug":"product-value","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/product-value\/","title":{"rendered":"Product Value: How to Know What Your Product Is Worth to the Customer"},"content":{"rendered":"\n

What’s your product worth to your customer? How will each feature benefit them?<\/p>\n\n\n\n

In Obviously Awesome<\/em>, April Dunford proposes a 12-step process that lets you position any product well. Step 6 involves product value. First, identify each feature’s benefit, and then figure out what the value of each benefit is.<\/p>\n\n\n\n

Let’s take a closer look at this step in the product positioning<\/a> process.<\/p>\n\n\n\n\n\n\n\n

Determine Your Features\u2019 Value to the Customer<\/h2>\n\n\n\n

Once you’ve determined what your product\u2019s unique features are, you should figure out how each feature adds value to your customer\u2019s life<\/strong>, counsels Dunford. Product<\/em> value really comes down to feature<\/em> value.<\/p>\n\n\n\n

It\u2019s easiest to break this step into two sub-steps: First, determine each feature\u2019s benefit<\/em>\u2014what the feature will do<\/em> practically for the customer. For instance, if your vacuum\u2019s feature is a high-powered suction mechanism, the benefit<\/em> is greater cleaning power.<\/p>\n\n\n\n

(Shortform note: In Building a StoryBrand<\/em><\/a>, <\/em>Donald Miller proposes that your product should not only add benefit and value to your customer\u2019s life but that it should also help them solve a philosophical problem<\/a>\u2014a misalignment between their lifestyle and their values. So, ideally, your vacuum would have the benefit<\/em> of greater cleaning power, the value<\/em> (as we\u2019re about to see) of a clean home, and solve the philosophical problem<\/em> of not having enough time<\/a> to spend on things that matter to the customer due to menial chores.)<\/p>\n\n\n\n

Next, determine what the value<\/em> of the benefit is, advises Dunford: how the feature helps the customer solve their specific problem. In our vacuum\u2019s case, the high-powered suction feature<\/em> with the benefit<\/em> of greater cleaning power leads to the value<\/em> of a less dirty home\u2014the problem the consumer is trying to solve. <\/p>\n\n\n\n

(Shortform note: In the Little Red Book of Selling<\/em><\/a>, <\/em>Jeffrey Gitomer proposes you consider \u201cvalue\u201d in an additional light. Beyond the value your product provides directly, your company<\/em> must also provide value to the customer through services<\/a> like advice, email or social media communication, and ongoing support. If you don\u2019t offer that sort of value yet, consider establishing avenues for this.)<\/p>\n\n\n\n

Dunford adds that you need to translate your product\u2019s feature to its benefit and value for the customer because it\u2019s rarely clear to the customer how these things are connected. For example, you might need to explain how your vacuum\u2019s faster-revolving brush (feature) separates carpet fibers better, allowing it to suck up deeper dirt (benefit), which keeps your carpets cleaner longer (value). <\/p>\n\n\n\n

(Shortform note: Marketing experts like Dunford stress the importance of showing the customer exactly <\/em>how your product improves their lives and not making them draw those connections themselves. In Building a StoryBrand<\/em><\/a>, <\/em>Donald Miller elaborates that many brands fail because they don\u2019t tell customers how they help them stay alive<\/em> or prosper<\/em><\/a>\u2014every human\u2019s two main goals in life. When brands don\u2019t clearly show how they help customers achieve those two basic goals, customers overlook them.) <\/p>\n\n\n\n

Gather Like Values Together<\/h3>\n\n\n\n

Once you\u2019ve determined the value of each feature, group these values together based on their relevance to the customer<\/strong>, states Dunford. Do this by thinking about what values the customer would associate with each other. For instance, your customer might consider that some values fall into the category of \u201cease of use\u201d while other values fall into the category of \u201ccleaning effectiveness.\u201d Narrow this down to one to four value groups.<\/p>\n\n\n\n

(Shortform note: Rather than just imagining <\/em>what values your customer might associate with each other, consider asking<\/em> them, as Ken Blanchard and Sheldon Bowles suggest in Raving Fans<\/em><\/a>. When doing this, ask people who\u2019ve already purchased from you or who plan on doing so<\/a> (you don\u2019t have to only ask your top customers, as Dunford suggests). Blanchard and Bowles recommend inquiring about what customers appreciate about your product\u2014this will help you understand what they value<\/em> about your product. To figure out what values customers associate with each other, ask customers to then zoom out and describe what bigger-picture aspects of your product they like\u2014this should provide you with value categories.)<\/p>\n\n\n\n

Exercise: Adopt New Perspectives to List Your Product\u2019s Features and Value<\/h3>\n\n\n\n

Identify the features, benefits, and value that both you and your customers perceive in your product, and consider how these might differ.<\/p>\n\n\n\n

  1. List what you personally feel are your product\u2019s five best features. Then, determine what benefit (the practical support) and value (the problem-solving ability) each provides the customer. Write these down next to the feature.<\/li>
  2. Now, note three customer segments<\/a> that would be interested in your product. Be sure these are narrow segments (for instance, \u201cwork-from-home parents\u201d is a narrow segment, while \u201cparents\u201d is too broad). <\/li>
  3. Put yourself in the shoes of each of these three customer segments, and ask yourself what they would consider to be your product\u2019s best features and those features\u2019 benefits and value. What would they appreciate in your product given their circumstances and needs? <\/li>
  4. Finally, consider if the features, benefits, and value you see in your product differ from those your customer sees. How might you position your product differently to reflect your customers\u2019 perspectives?<\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"

    What’s your product worth to your customer? How will each feature benefit them? In Obviously Awesome, April Dunford proposes a 12-step process that lets you position any product well. Step 6 involves product value. First, identify each feature’s benefit, and then figure out what the value of each benefit is. Let’s take a closer look at this step in the product positioning process.<\/p>\n","protected":false},"author":9,"featured_media":76074,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[104,103],"tags":[720],"class_list":["post-76070","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing","category-sales","tag-obviously-awesome","","tg-column-two"],"yoast_head":"\nProduct Value: How to Know What Your Product Is Worth to the Customer - Shortform Books<\/title>\n<meta name=\"description\" content=\"Product value really comes down to feature value. Identify each feature's benefit, and then figure out the value of each benefit. 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