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The importance of customer feedback
How to improve customer experience
Unit of value
Unit of value:
- What your customers pay for.
- The smallest measurable unit at which your product or service delivers value.
- Examples: servers, user seats, TBs of storage, API calls.
Your unit of value determines how you price, scale and sell your product to customers.
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Apply this to your startup
- Define your unit of value: What is the smallest unit of your product that delivers value to your customers?
- Create a roadmap to increase that value as you scale. Identify ways to increase value as you and your customers grow. Figure out how to combin...
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Create non-linear value
From the 80/20 rule you know a few customers will drive your sales. Your goal is to find that handful of customers and scale them up. The goal is to create non-linear value for them.
Build out your offerings so the more your customers consume, the m...
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Unit of value examples
Single units of value
- Dropbox / Office 365 - one user
- VMWare - one server
Medium/Team units of value
- GitHub - dev team
- Salesforce - 3-4 sales reps
Big units of value
- SAP - E...
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Events-Based Billing: Leveraging Actions to Provide Value-Based Billing
The ability to bill customers based on how they consume your product is a powerful and non-arbitrary pricing methodology which effectively increases usage and revenue.
By leveraging user actions to provide value-based billing, both you and your customers end up winning.
2. Value Determines Price And Costs Are A Choice
With value being in the eyes (and experience) of the consumer, the price they are asked to pay must be (much) lower. The entrepreneur’s job is to figure out at what price their product is attractive, and then choose a cost structure that allows for profit. In other words, the price is a
Thinking about whole services will change what your service is
- Understanding what your user is trying to achieve.
- Get a good understanding of who else delivers parts of this service and how they relate to your organization.
- Look at your organization’s ability to deliver all of this service; if this isn’t feasible, define what a rational ...
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