Understanding Value & Customers

• Economic Value Estimation: Reference value + differentiation value analysis
• Value Decoder framework: Perceived value framework based on next-best alternative with characteristic, income, complement, and environment adjustments
• Willingness-to-pay (WTP): The maximum price a buyer accepts; use it to set a defensible price range, design tiers, and validate pricing against unit economics. Includes methods like Van Westendorp PSM, Gabor–Granger, and conjoint analysis.
• Customer use cases: Structured descriptions of the problem, persona, context, and outcomes that define how customers get value from your product and how you should price.
• Jobs To Be Done (JTBD): Understanding customer outcomes and success metrics
• Segmentation by WTP/use case: Value-based customer segmentation strategies
• Ideal Customer Profile (ICP): Defining and targeting your best customers
• Value drivers: Monetary and psychological factors that drive value perception
• Price sensitivity & demand curves: Understanding how price changes affect demand
• Buyer identification fences: Role, geography, and organization-based targeting

This category helps you understand your customers deeply so you can price based on value rather than cost or competition. Use these concepts to identify your highest-value customers, understand what drives their purchasing decisions, and design pricing that captures more of the value you create.