Formula for calculating product value (from a source you wouldn't suspect)

  • 6 October 2022
  • 2 replies
  • 31 views

Userlevel 3
Badge +1

I took a course on marketing that changed how I think about building successful products.

I'm surprised how much overlap there was with product strategy. Here's my biggest takeaway 👇

In my experience, the mindset of most product teams goes:

Solve important customer problems. [stop]

But then Alex Hormozi shared this positioning formula in the course...
 



Doesn't that same formula apply to product development?

That must mean the full-picture mindset of successful product teams needs to be:

Solve important customer problems *in simple, accessible ways*

Unless, of course, you want to scrap and rebuild your products every year when your customer is able to find alternative solutions that they can:

⚡️ Get faster
💰 Get cheaper
👌 Use more easily

If this is all true, how do we end up with bloated products filled with features nobody needs or wants?
(share in the comments)


2 replies

Userlevel 3
Badge +2

Thanks for sharing @jaymelone it makes all sense!

Userlevel 5
Badge +2

That formula basically holds true for every product I’ve worked on. I can’t think of a valid exception. It’s just another variation of prioritization frameworks like RICE with a little more color behind risk and effort in the form of “delay”.

As far as “bloated products filled with features nobody needs or wants” it all comes down to bureaucracy. The org becomes bogged down with in-fighting “leaders” that are often rewarded for competing against or flat out undermining their peers. You might have a revenue department that is incentivized on pipeline, close rates, and top line sales with no regard for actually delivering profitable satisfaction. Or a product team that is supposed to deliver features against the Board’s pet project’s list even if it does nothing to sustain or improve sales and margin.

The world is full of greedy, self-interested people. The big winners design their entire corporate strategy (internal and external) to exploit that historical fact.

I hope that’s not too cynical for this audience.

Reply