Defining and Measuring Value in PMTK
Question: "What is Value?"
According to the Blackblot PMTK Methdology™, Value is the worth derived by the customer from owning and using the product.
Value can also be explained as the difference between the product's benefits and the economic sacrifice made to experience those product benefits.
Benefits are product features that are desirable to the customer.
Value is the difference between the positive outcomes product features provide and how much you paid for those benefits.
Question: "How do we measure value?"
According to PMTK, value can be actual (factually proven to provide a positive outcome) or perceived (believed it can give a positive outcome).
Value can be tangible (measurable improvement such as time or money saved) or intangible (non-physical gains such as improved usability, elevated social status, or being more knowledgeable).
Depending on the given situation, the value could be expressed in monetary (e.g., time and money saved) or non-monetary (becoming more knowledgeable) units of value.
Monetary units are considered easier to measure, justify and comprehend than non-monetary units of value.
It all depends on the given scenario and circumstances.