Bringing in the Human: Customer Benefit Analysis
By
Recorded Live: March 15, 2023 @ 12pm ET | View the Recording
In the second episode of the Agile Experts webinar series, learn about a fundamental approach to sustainable profitability: Customer Benefit Analysis (CBA), a key component of the Profit Stream Canvas.
Miro and Applied Frameworks hosts, joined by Tyler Simons, Head of Customer Success from Fullcast, explored Customer Benefit Analysis using Fullcast as a case study. Over the course of the session, Tyler and Jason discussed how conducting a Customer Benefit Analysis improved revenue opportunities and highlighted key pricing and discounting initiatives that immediately impacted profitability.
What is Customer Benefit Analysis?
Customer Benefit Analysis is a robust framework and process designed to answer two key questions that drive revenue:
- What dimensions of our solution provide benefits to our customers?
- What is the magnitude of the benefit?
It captures the answers to these questions in a unified economic model based on tangible and intangible benefits. The analysis's results drive pricing, positioning, and packaging choices. The information also drives product backlog prioritization decisions and provides business and product leaders with essential skills as they seek to increase revenue and improve profitability.
Download the Slides | Access the Miro Template
Questions & Answers:
Q: Is the Value System based on or related to Impact Mapping or Systems Modeling?
A: The system described in the webinar is lightweight systems modeling to identify any relationships between identified benefits. The system we described resembles impact mapping since the cards could be interpreted to identify actors and impacts based on the specific customer segment's overall goals. Our focus is on the dimension and magnitude of benefits or impacts to align the software-enabled solution's solution, pricing, and licensing.
Q: How does identifying the next best alternative affect the CBA?
A: The next best alternative does not impact benefit analysis. However, competitors and alternative solutions will definitely impact solution development, price strategy, price structure, and price specifics, such as price level for each segment.
Q: When we talk about validation in this context, is it validation that the product provides the benefit we think it does, or is it validation that the customer cares about the benefit as much as we think they do?
About the Agile Expert Series:
The Agile Expert series is a Partnership between Miro and Applied Frameworks where agile experts explore what's new in agile practices to inspire and educate.
Miss the first session? Check out the recording for Start from Zero with Feature Mining.
