Whether a product becomes a super product and continuously creates value for users is the basic principle of a company’s long-term development. The prerequisite for how to make a product bring value to users is whether the company can meet user needs. In addition, user value will be affected. What are the influences?
I think this is a problem that many product managers will think about. The reason for constantly thinking about this problem is because of the unknown, so finding a way to figure it out will be of great help to building a super product.
Regarding user value, everyone actually has a different point of view, but this article believes that user value is higher than commercial value. If product managers want to build super products, they must first target user groups, then meet their needs, and finally consider the issue of monetization. At that time, the user value inside is equal to utility, and utility has the following characteristics:
1) The value of the user depends on the user's awareness, which is an indicator that cannot be fully standardized.
2) The same product brings different values to different users and different scenarios.
01
Analysis of user value
For example, for a shopping platform, its value can be divided into: commodity price, commodity service, commodity quality...
Further subdivided, commodity services can be divided into: pre-sale consultation, sale and distribution, after-sales service...
For Didi, its value can be divided into: time of arrival, safety issues, price, service...
Further subdivided, the safety issues can be divided into: life safety, harassment, robbery, whether the items left in the car are returned...
Therefore, in the process of creating super products, product managers can think about what value our products can bring? Whether these values meet the needs of users, the value becomes a part of the company's products in the whole process.
02
The relationship between value and user needs
After clarifying the definition of user value, we will find a practical problem, how to meet user needs?
As we said before, creating super products to continuously create higher value for users is the basic principle for long-term development of enterprises, so as long as users continue to meet user needs, it can improve user utility and create greater value for them ? Before answering this question, we can take a look at an experiment in behavioral economics that divides the user value and sharing of the four choices into several parts. Which one would you choose?
1) EUB = 3000, Risk = 0% can not get money.
2) EUA = 3200, Risk = 20% can not get money.
3) EUD = 750, Risk = 75% can not get money.
4) EUC = 800, Risk = 80% without money.
Seeing this, many people will choose one or four options. But in fact, the third option is correct.
This shows a conclusion: user value does not depend on the expected data obtained by the utility function, but will be affected by the reference point.
03
Reference point for user value
How to let everyone understand the utility and reference points, here I choose to give an example:
The company you founded gives employees a salary increase. As a boss, you give an employee a salary increase of 5,000 yuan. He will be very happy. The criterion for raising his salary is how effective he is.
From the point of view of utility, an increase in wages will definitely increase utility. But if Xiao C finds that the salary of his colleagues has risen by 1,000 yuan, will he still be so happy? His utility will increase? Or when Xiao C finds that his colleagues do not have as many salary increases, will his utility increase?
Many people will want to know how much their colleagues have increased after knowing how much they have increased. Then the degree of increase in wages will also affect the effectiveness of employees. At this time, the amount of salary increase for colleagues is a reference for the company to obtain utility. point.
Our users are the same. The value they get when users use products will also be affected by reference points. How to create some good reference points becomes very important.
04
to sum up
In the case of using the product, we can select the scene as a reference point. In the process of creating a super product, the product manager can imagine under what scene the product's utility to users can be maximized.
The time to respond to the user and the characteristics of the user can be used as a reference point for utility.
Want to create super products, continuously improve user value, let users feel the value is the key, therefore, user value is higher than commercial value, first meet user needs, and then talk about value, and improve the company's ability to monetize.