Profit Streams™ Customer Benefit Analysis
What is Customer Benefit Analysis?
Customer Benefit Analysis empowers informed decision-making within Profit Stream Design by answering two key questions:
- What are the tangible and intangible benefits our solution provides to customers?
- What is the economic value of these benefits to them?
By understanding these critical aspects, businesses can optimize pricing, positioning, packaging, and product development priorities to maximize revenue and profitability.
Customer Benefit Analysis, a customer-centric approach to defining economic value, is an ongoing, iterative process that successful organizations integrate throughout their entire solution lifecycle.
Customer Benefit Analysis has a positive impact on the entire organization – everyone can see how their work helps customers succeed!
In new solution development, Customer Benefit Analysis is used to:
- Identify the most promising ideas.
- Guide development to create profitable solutions by focusing on features that create the most value.
- Create marketing and sales materials that promote the benefits customers will receive.
After the solution is launched, Customer Benefit Analysis helps organizations:
- Prioritize new features and feature enhancements.
- Adjust pricing and packaging choices to enhance profitability
- Respond to competitive threats
How does a Customer Benefit Analysis Engagement work?
While every engagement is tailored to your needs, a Customer Benefit Analysis engagement will typically include one or more of the following activities:
Identifying the customer segments your targeting
Developing Benefit Cards that capture tangible and intangible benefits
Organizing Benefit Cards into a Value System
Establishing patterns of minimum value
Identifying when a solution may be providing ‘too much’ value
Categorizing direct and indirect benefits on a segment basis
Developing a Solution Benefit Map to help define packages and bundles
Conducting market research to identify which features are needed to create the desired benefits
We’ll help you determine the specific mix of activities based on your needs.
We understand that every business has its own unique needs. While some organizations may find success with ready-made solutions, others require a tailored approach to thrive. We have the expertise to design a customized engagement that caters to your unique context. No matter what you need, we will create a solution that works best for you.
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Where can I learn more?
Discover how to increase profits at any stage of your solution's lifecycle with Profit Stream Design, a key concept explored in the Amazon bestselling book Software Profit Streams: A Guide to Designing a Sustainably Profitable Business by Jason Tanner and Luke Hohmann. Learn more about the Profit Stream Canvas and how Solution Profitability Management can benefit your business.