What's the best way to measure your product vision and value proposition's impact on performance?

1 Define your product vision and value proposition

Your product vision is a statement that describes the purpose, goals, and benefits of your product. It should answer the question: why does your product exist? Your value proposition is a statement that summarizes the unique value that your product offers to your customers. It should answer the question: what makes your product different and better than the alternatives? To define your product vision and value proposition, you need to understand your target market, their problems, and their desired outcomes. You can use tools such as customer personas, jobs-to-be-done, and value proposition canvas to help you with this process.

2 Set up your product performance metrics

Once you have a clear product vision and value proposition, you need to define how you will measure your product performance. Product performance metrics are quantitative indicators that show how well your product is achieving its goals and delivering value to your customers. They can be divided into three categories: acquisition, retention, and monetization. Acquisition metrics measure how effectively you attract and convert new customers. Retention metrics measure how well you keep and engage existing customers. Monetization metrics measure how much revenue and profit you generate from your customers. Some examples of product performance metrics are: customer acquisition cost, customer lifetime value, churn rate, net promoter score, monthly recurring revenue, and profit margin.

3 Test your product vision and value proposition hypotheses

Your product vision and value proposition are based on assumptions that need to be validated with real data and feedback from your customers. You can use various methods to test your hypotheses, such as surveys, interviews, landing pages, prototypes, MVPs, and experiments. The goal is to find out if your product vision and value proposition resonate with your target market, solve their problems, and create value for them. You should also compare your product vision and value proposition with your competitors and alternatives, and identify your unique selling points and competitive advantages.

4 Analyze your product performance data

After testing your product vision and value proposition hypotheses, you need to analyze your product performance data and see if they match your expectations. You can use tools such as dashboards, reports, and analytics platforms to track and visualize your product performance metrics. You should also segment your data by different customer groups, channels, features, and behaviors to gain more insights. The key is to look for patterns, trends, correlations, and anomalies in your data, and understand the causes and effects behind them.

5 Iterate on your product vision and value proposition

Based on your data analysis, you can evaluate how well your product vision and value proposition are impacting your product performance. You can use frameworks such as the lean startup cycle or the build-measure-learn loop to guide you through this process. You can also use tools such as the business model canvas or the lean canvas to document and update your product vision and value proposition. The idea is to learn from your data and feedback, and make changes to your product vision and value proposition accordingly. You should also test your new hypotheses and measure your new results, and repeat the cycle until you achieve your product goals.

6 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?