Last updated on Feb 11, 2024

How do you measure and communicate the value of your product or service throughout its lifecycle?

As a product planner, you need to know how to measure and communicate the value of your product or service throughout its lifecycle. Value is not a static concept, but a dynamic one that changes depending on the needs and expectations of your customers, the market conditions, and the competitive landscape. In this article, you will learn how to use different frameworks and tools to assess and articulate the value proposition of your product or service at each stage of its lifecycle, from ideation to retirement.

1 Define value proposition

A value proposition is a clear and concise statement that describes how your product or service solves a customer problem, delivers a benefit, or satisfies a need. It also explains why your product or service is different from or better than the alternatives. A value proposition is not a slogan, a feature list, or a sales pitch. It is a strategic tool that helps you align your product or service with your target market and communicate your unique value to your customers and stakeholders.

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Alfons Staerk

Life Coach | Health, Wellness, and Happiness Advocate | Executive Leader | Business and Career Advisor | Entrepreneur | Author | Speaker
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Start with understanding your users and their pain points. Talk to real users, watch them try to accomplish a task, and walk a mile in their shoes. Get clarity on what they want to achieve (not what functionality they ask for) and their current pain points. Now you have all the data to describe a desirable target state in your value proposition. Describe how it differs from the current state and how the user experience would improve with the target state. Avoid strategy jargon but take the user's perspective: "What's in it for me!?"

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2 Validate value proposition

Before you launch your product or service, you need to validate your value proposition with your potential customers. This means testing your assumptions, gathering feedback, and measuring the demand and willingness to pay for your product or service. You can use various methods and tools to validate your value proposition, such as interviews, surveys, landing pages, prototypes, or minimum viable products (MVPs). The goal is to learn from your customers and iterate on your value proposition until you find a product-market fit.

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Elia Ahadi

Building AI systems for business owners to do less and scale better using my bespoke AIM philosophy that improves productivity + top line dollars.
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Validating your value proposition is key to understanding your users' pain points. This ideally is done through product demos with a proof of concept to assess whether they will actually pay for the product. Once you get that need addressed, you can filter down further and prioritize the top features customers want.

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3 Communicate value proposition

Once you have validated your value proposition, you need to communicate it effectively to your customers and stakeholders. This means crafting a compelling and consistent message that highlights the benefits and outcomes of your product or service, not just the features and functions. You can use different formats and channels to communicate your value proposition, such as website copy, elevator pitch, sales presentation, video, or case study. The key is to tailor your message to your audience and their context, and to use clear and simple language that resonates with them.

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4 Monitor value proposition

After you launch your product or service, you need to monitor your value proposition and how it performs in the market. This means measuring the impact and outcomes of your product or service, such as customer satisfaction, retention, loyalty, referrals, revenue, or market share. You can use various metrics and tools to monitor your value proposition, such as customer feedback, net promoter score (NPS), customer lifetime value (CLV), or return on investment (ROI). The goal is to track your progress and identify any gaps or opportunities for improvement.

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Alfons Staerk

Life Coach | Health, Wellness, and Happiness Advocate | Executive Leader | Business and Career Advisor | Entrepreneur | Author | Speaker
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As you develop your set of metrics, it's important not to fall into the trap of measuring and reporting on the data that you have but on the one that you need to make decisions. All too often, I've seen metrics meetings where lots of data were presented with little insight as to why that data was relevant - it was just available, and so it was shown. Rather, think about what questions you need to answer (e.g., the value of a feature to your users) and what data you have available in real-time to give you an indication. Often proxy data is a better (faster) indicator than the actual metric. For example, it's better to know on a daily basis what percentage of your user base uses a feature than to wait for the results of a quarterly survey.

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5 Evolve value proposition

As your product or service matures, you need to evolve your value proposition and adapt to the changing needs and expectations of your customers, the market conditions, and the competitive landscape. This means updating or refining your value proposition based on the insights and data you collect from your customers and the market. You can use different frameworks and tools to evolve your value proposition, such as value proposition canvas, lean canvas, business model canvas, or SWOT analysis. The key is to stay relevant and deliver value to your customers and stakeholders.

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6 Retire value proposition

At some point, your product or service may reach the end of its lifecycle and no longer deliver value to your customers or stakeholders. This means retiring your value proposition and discontinuing your product or service. You can use different criteria and tools to retire your value proposition, such as customer feedback, market trends, product performance, or portfolio analysis. The goal is to make a strategic decision and communicate it clearly and respectfully to your customers and stakeholders.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Erika Cravens
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Key performance indicators. While it was discussed to review things like the net promoter score, there are other indicators such as actual revenue and reach. Also, sentiment values.

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How do you measure and communicate the value of your product or service throughout its lifecycle?

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1 Define value proposition

2 Validate value proposition

3 Communicate value proposition

4 Monitor value proposition

5 Evolve value proposition

6 Retire value proposition

7 Here’s what else to consider

Product Planning

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