When developing a new product, do you link product features to customer benefits and then do you estimate the economic value that your customer will receive?

You maybe wondering what this has got to do with pricing.

This is a very powerful approach that creates a line of sight between your product features and the $ economic impact on your target customers’ business.

A deep understanding of your target customers’ needs translates a product’s features into customer benefits which are then translated into value estimate.

Often, when focusing on the many features of your product or service, it is easy to assume the benefits are obvious to your customers and prospects.

Or if you are talking about benefits, it is easy to assume that you have conveyed the value.

These mistakes in assuming can be costly and result in significant value being left on the table.

FEATURES are all about you, the supplier and your products, services and solutions. Features are product attributes and are 100% focused on your product and service offering.

BENEFITS are all about the customer. A benefit shows your customer how a feature helps them. It answers the “so what?” question.

VALUE is the measure in monetary terms of the economic and emotional benefits to the customer. For each benefit, the impact on the customer can be described as increase in revenue, reduction in cost, asset utilisation and reduction of risk.

This approach enables you to prioritise which features to develop and evaluate how differentiated your offering is vs. competitive alternatives.

You are creating a competitive advantage.

Are you linking features, benefits and values?