{"id":77944,"date":"2022-03-17T11:16:09","date_gmt":"2022-03-17T11:16:09","guid":{"rendered":"https:\/\/www.prodpad.com\/?p=77944"},"modified":"2025-01-13T16:25:55","modified_gmt":"2025-01-13T16:25:55","slug":"product-value","status":"publish","type":"post","link":"https:\/\/www.prodpad.com\/blog\/product-value\/","title":{"rendered":"Product Value: Understanding What It Is and How to Achieve It"},"content":{"rendered":"\n

Product value is hard to define. Is it determined by profits and costs, or is it about user benefits and outcomes? And once we\u2019ve agreed on what it means, how do we actually deliver it? <\/p>\n\n\n\n

In this post, we\u2019ll explore how product value is determined, positioned, and priced.<\/p>\n\n\n\n

Definition of product value<\/h2>\n\n\n\n

Product value is the qualitative<\/a> <\/em>benefit that a user gets from a particular product in satisfying needs, solving problems, and achieving goals.

Value is not necessarily a monetary amount, nor can it always be quantitatively measured. That\u2019s because much of product value is based on the perception <\/em>of the customer. It\u2019s sentiment and feeling as much as it is tangible rewards like saving time and money.<\/p>\n\n\n

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\"Product<\/figure>\n<\/div>\n\n\n

The product manager\u2019s role in product value<\/h2>\n\n\n\n

The product manager\u2019s job is to create beneficial outcomes. So, is that business outcomes or user outcomes?

Ultimately it\u2019s business outcomes. But these should be closely aligned with the user outcomes! When your users are happy, the business moves toward its goals. On the other hand, if there\u2019s no alignment between user and business, people won\u2019t buy your product or they\u2019ll churn. And the company will stagnate and suffer.

That\u2019s why competition is healthy, because it ensures that you continue to create the best outcomes and the most product value for your users.

Product managers play a central role in determining what a product\u2019s value is to the user and how to execute that value on an ongoing, iterative basis.<\/p>\n\n\n\n

How product value is determined<\/h2>\n\n\n\n

The value of a product can be evaluated in so many ways. It can start with classic product management questions such as: What does the user need? What are they trying to do?

But finding the answers is tricky. The user\u2019s needs and goals can run the gamut from core survival to superficial. Plus, people are generally bad at articulating why they use something. They\u2019re not even aware of the value it has for them! So it takes some keen psychological understanding to determine what your users actually want from your product.

Of course there\u2019s the obvious economic benefits, such as earning money or saving money. But users\u2019 needs could be more basic or intrinsic than that; maybe they\u2019re trying to get fed or just a bit more sleep. Perhaps there are self-actualization needs at play; maybe they want to feel awesome \u2013 or to be perceived as awesome by others!

The bottom line is that people have complex needs. So there\u2019s a variety of ways your product can provide value.

In the realm of B2B software, all types of products can satisfy needs such as:<\/p>\n\n\n\n