November 5, 2024

Business Value First, Features Second: The Key to Product Positioning

Business Value First, Features Second: The Key to Product Positioning

In today’s market, founders and co-founders are constantly searching for solutions to their most urgent problems. Whether the goal is to improve operational efficiency, cut costs, or drive revenue growth, the focus always remains on one thing: results. Yet, many start-up companies—especially in technology and services—fall into the trap of emphasising product features rather than the real business value those features deliver. While cutting-edge features can be impressive, they don't always translate into a compelling business case for your customers.

To successfully position your product or solution, it’s crucial to prioritise business value first and features second.

Why Business Value Matters More Than Features

When potential customers evaluate a solution, they aren't just looking for a flashy set of features. They want something to solve a specific problem or elevate their business. Your ability to communicate “how” your product or service addresses their needs will set you apart from competitors who focus too heavily on bells and whistles.

I once worked on a product launch strategy. When the product was first launched, it was praised for its innovative features and was widely regarded as superior to competitors. However, this initial excitement didn’t translate into sales because the features, while impressive, didn’t address a compelling business need that justified an upgrade. The turning point came when the focus shifted from the product's features to its ergonomic design and how it could improve users' health and productivity. By highlighting the tangible benefits—such as reduced strain and increased efficiency—customers began to see how the product could directly improve their well-being, creating a demand rooted in real value, which led to a significant boost in sales.

The Reality of Business Problems

Businesses operate under various constraints: limited time, resources, and budgets. Every decision they make must ultimately improve their bottom line. Highlighting your product’s advanced technical specifications without explaining “why” they matter or “how” they contribute to tangible outcomes is a missed opportunity.

For example, a software solution boasting an advanced AI algorithm may sound appealing. Still, unless it’s clear how AI can help streamline workflows, minimise errors, or reduce operational costs, the excitement around the feature won’t necessarily lead to a sale.

Features Are Great, but Value Is Critical

Features only become important once customers understand how those features benefit their business. They want to know how your product will:

  • Solve a specific pain point
  • Increase efficiency
  • Save time or money
  • Give a competitive edge

When you lead with these business values, the customer’s mindset shifts. Instead of asking, “Why do I need this feature?” They start asking, “How soon can I have this solution?”

How to Shift from Features to Business Value

Here are some practical strategies to focus your product positioning on business value:

Understand the Customer’s Pain Points

Before diving into product features, take the time to understand the specific challenges your customer faces fully. Conduct research, ask questions, and listen to their pain points. Once you know what keeps them up at night, you can tailor your messaging to show how your product directly solves these issues. Only then should you introduce features—framed in the context of solving their problems.

Articulate Clear Outcomes

Customers want to know what success looks like with your solution. Paint a picture of the outcomes they can expect. Will your product help them reduce operational costs by 20%? Increase productivity by 30%? Quantifiable results resonate much more than a list of features.

Tell Stories of Success

Case studies and customer success stories are incredibly effective in demonstrating the business value of your solution. Share examples of how other businesses have benefited from your product so potential customers can easily picture how it will work for them.

Link Features to Benefits

Once you’ve laid the foundation by discussing the business value, you can introduce product features—but only how they support your customer’s business goals. For example, if your product has an automated reporting tool, don’t just say it’s automated. Explain that it will free up 10 hours of manual work weekly, allowing employees to focus on higher-value tasks.

Focus on ROI

Ultimately, businesses must know that investing in your product is worth it. Be upfront about the return on investment (ROI) they can expect. Whether its time saved, costs reduced, or revenue increased, focusing on ROI helps customers justify the purchase.

The Business-Centric Approach Wins

When it comes to product positioning, always prioritise business value. While it might be tempting to lead with a shiny list of features, those features are only as valuable as the problems they solve. By focusing on how your product or solution drives actual, tangible business outcomes, you not only differentiate yourself from the competition but also make a stronger case for why customers should choose you.

Ultimately, a business-centric approach will help you win trust, build lasting relationships, and drive sustainable growth.