As a product builder, I build things full-time, whether it’s a venture newsletter, micro-products or coaching founders to build tech products. For fun, I build an AI article tool, event app, meal box app, SaaS tracker, and sneaker app, using my rapid MVP technique.

This post is one of my Multi-Part Product Guide series. You may also like my top-rated guides such as — When to Pivot a Product, Validation Framework, and 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 create great value in your product, which can ultimately lead to increased MRR or profits.

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:

  1. Speed: Offer a faster way to accomplish a specific user’s goal
  2. Performance: Easy to use and user-friendly
  3. Friction removal: Reduce obstacles and unstuck the user’s journey
  4. Technical benefits: More accurate and secure

Example:

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:

  1. Affordability: 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.
  2. Reduce expenses: Eliminate middlemen, complex cost structures or hidden fees
  3. Great savings: Discounts for bulk purchases or long-term subscriptions can incentivize customers to make larger orders, resulting in higher revenue per transaction.
  4. Loyalty program: Offering point-based rewards, exclusive discounts, and perks to frequent customers can motivate them to continue doing business with your company.

Example:

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:

  1. Reduce stress: Simplify people’s lives by removing complexities
  2. Reduce uncertainty: Remove doubts by providing transparent detail about how your product or service works
  3. Increase confidence: Provide a guarantee or promise that your product will deliver the desired results
  4. Remove fears: Assure customers by addressing their concerns

Example:

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:

  1. Belongings: Create a sense of community around your product by building an engaged online community where users can connect with like-minded people.
  2. Motivation: Provide additional support, guidance and resources to help users when they are stuck.
  3. Recognition: Provide rewards or celebrations when they achieve certain milestones.

Example:

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