Business Value
Business value is the impact product teams create for their business—typically measured through outcomes like revenue growth, increased retention, reduced costs, or improved market position.
What is the relationship between customer value and business value?
Product teams create business value by first creating customer value. This is the fundamental formula for effective product work: address customer opportunities (needs, pain points, and desires) in a way that drives business outcomes.
Creating customer value alone isn't enough. Teams must also drive business results. Similarly, focusing solely on business value without meeting customer needs is unsustainable. The best product teams find the sweet spot where solving customer problems naturally drives business outcomes.
How do product teams create business value?
Product teams create business value indirectly. They can't directly control revenue or retention. Instead, they influence business outcomes through product outcomes—measurable changes in customer behavior that serve as leading indicators of business results.
For example, a team can't force customers to renew their subscriptions. But they can increase engagement, improve feature adoption, or reduce friction in key workflows—behaviors that typically lead to higher retention rates.
Why do companies task product teams with outcomes rather than outputs?
Business value is why companies task product teams with outcomes rather than outputs. When teams focus on outcomes, they aren't done when the software ships. They're done when the software ships and has the expected impact on the business.
This shift requires teams to understand their company's business model and how their work connects to business value. Teams need to translate business outcomes into product outcomes they can actually influence—outcomes within their span of control.
Learn more:
- Shifting from Outputs to Outcomes: Why It Matters and How to Get Started
- Product Discovery Basics: Everything You Need to Know
Related terms:
- Customer Value
- Business Outcomes
- Product Outcomes
- Outcomes
Last Updated: October 25, 2025