As a , I build things full-time, whether it’s a , or coaching founders to build tech products. For fun, I build an , , , , and , using my . product builder venture newsletter micro-products AI article tool event app meal box app SaaS tracker sneaker app rapid MVP technique This post is one of my series. You may also like my top-rated guides such as — , , and . Multi-Part Product Guide When to Pivot a Product Validation Framework Test Willingness To Pay Customers are more likely to pay a premium for a product that is useful, helpful, and valuable. In this guide, I will share strategies to help you in your product, which can ultimately lead to or profits. create great value increased MRR Strategy #1: Create functional value The first technique is to make your product useful at a functional level by providing practical or utilitarian benefits to your users. You can identify the fundamental needs of your users and solve their problems by incorporating relevant technical features into your product. Components of functional value: Offer a faster way to accomplish a specific user’s goal Speed: Easy to use and user-friendly Performance: Reduce obstacles and unstuck the user’s journey Friction removal: More accurate and secure Technical benefits: Example: Manage savings, expenses, investments, and insurance in one account. 💳 Digital banking app: Easily sync tasks across all your devices and collaborate with team members. 🗃️ Task management app: Analyze and generate insights report and prediction instantly 📈 Analytic tool: Create mobile apps in minutes using drag-and-drop 🧰 No-Code software: Strategy #2: Create monetary value You can also combine functional value with monetary value by focusing on helping your customers save money, avoid losses, and increase their savings. By offering benefits that help customers achieve these goals, you can create a product that not only provides useful solutions but also generate economic value. Components of monetary value: By curating the best deals and offering high-quality products at affordable prices, you can attract price-sensitive customers who value both quality and cost-effectiveness. Affordability: Eliminate middlemen, complex cost structures or hidden fees Reduce expenses: Discounts for bulk purchases or long-term subscriptions can incentivize customers to make larger orders, resulting in higher revenue per transaction. Great savings: Offering point-based rewards, exclusive discounts, and perks to frequent customers can motivate them to continue doing business with your company. Loyalty program: Example: 🥬 Low Price Promise makes organic grocery shopping affordable. Thrive Market’s smart thermostats and home devices help users optimize their energy consumption and lead to cost savings on utility bills. ⚡️ Ecobee’s 👾 annual subscription offers customers a range of benefits, including free shipping, access to streaming services, and discounts on select items. Amazon's Prime ☕️ allows customers to earn free food and drinks. Starbucks Rewards Strategy #3: Create emotional value You can increase a product’s value by creating strong pleasant experiences. Consider how your product makes customers feel after they use it. How to create emotional value: Simplify people’s lives by removing complexities Reduce stress: Remove doubts by providing transparent detail about how your product or service works Reduce uncertainty: Provide a guarantee or promise that your product will deliver the desired results Increase confidence: Assure customers by addressing their concerns Remove fears: Example: Notion streamlines your personal and work projects by providing an all-in-one workspace that allows you to manage tasks, notes, and databases in a single platform. 🎯 “I feel organized”: The Zebra, an insurance marketplace, provides a platform for users to compare insurance quotes and purchase policies from trusted providers, assuring users that they are making an informed decision. 🧿 “I feel trustworthy”: Noom is a weight-loss app that stands out by using psychological principles to help users lose weight and create a lasting result. App tagline: 78% of Noomers lost weight in a six-month study. 💪 “I have hope”: Strategy #4: Create social value Another reason why people may choose to pay for a particular product over a competitor is because it fulfills a person's social status or social needs. This means that the product is seen as a symbol of their status or helps them connect with others who share similar interests or values. Components of social value: Create a sense of community around your product by building an engaged online community where users can connect with like-minded people. Belongings: Provide additional support, guidance and resources to help users when they are stuck. Motivation: Provide rewards or celebrations when they achieve certain milestones. Recognition: Example: A content platform focusing on developing quality resources on how to scale a consulting business to 7 figures. 👨‍🏫 Product idea: Offer monthly expert workshops with successful consultants who have scaled 7-figure consulting services. This provides users with the opportunity to learn from and interact with highly respected experts in their field. 🤝 How to create social value: Charge users for accessing community features, e.g. attending monthly workshops, exclusive content, and 1:1 priority access to 7-figure consultants. ☎️ Monetizable feature: [1] Find me on my / / / 🔥 Personal Site Twitter LinkedIn HackerNoon [2] Get my product-building teardown — 🚀 Join my newsletter Also published . here

Increase Your Profits By Creating Valuable Products — Here's How

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