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In the digital product world, however, we encounter a unique challenge. While many frameworks and methodologies are available — frameworks that serve to organise and direct our efforts — few speak to the heart of what truly matters in this context: value. Years ago, I set out to explore how the concept of value could be applied to the digital domain. I sought inspiration from established industries, particularly the FMCG and automotive sectors, whose frameworks for defining value have evolved over decades. Yet, I quickly realised that these frameworks, though insightful, could not be directly transplanted into the world of digital products. The dynamics of digital product development, characterized by the rapid pace of change in technology and user behavior, and the often fluid nature of user engagement, demand a different approach, one more attuned to the digital age’s complexities.
During this exploration, I stumbled upon Peter Doyle’s Value-Based Marketing, a framework that resonated deeply with the needs of digital product teams. Doyle’s approach focuses not on the features and benefits of a product but on the values of the customer — the ethical, emotional, and psychological drivers that shape their decisions. It is a significant shift from a business-centric approach, which often gets mired in the minutiae of features, to a customer-centric one, which places the customer’s values at the centre of the product development process. In Doyle’s vision, marketing and product strategy are inseparable; a company’s message, brand identity, and how it builds and markets its products must be infused with the values that resonate with its audience.
For product and design teams, understanding what customers value is not merely necessary but foundational. It is the key to crafting a genuinely customer-centric product that resonates more deeply than any sales pitch or market analysis could capture. This understanding is not confined to quantitative data alone, though such metrics are invaluable. For instance, quantitative data might reveal that a certain feature is used frequently, while qualitative data might uncover the emotional reasons behind its popularity. By integrating both types of data in this way, a company can develop a values-based strategy — one rooted in its mission and vision yet responsive to the ever-evolving needs of its users. It allows for creating products that meet customer needs and speak to their values, creating a lasting and meaningful connection.
Ultimately, this approach calls us to go beyond the surface, beyond mere features and benefits, and to engage with the core of what our customers truly care about. In doing so, we are not merely creating products; we are crafting experiences, shaping relationships, and building a future that reflects the values we hold dear and the values that our customers seek to embody. In this delicate alignment of belief, value, and purpose, a product’s true potential is realised.
Peter Doyle’s “Value-Based Marketing” framework posits that value is not a singular, static entity but a multifaceted concept unfolding across four distinct yet interconnected dimensions. It suggests that value, much like truth or beauty, cannot be fully grasped through a singular perspective; instead, it reveals itself through layers shaped by context, perception, and purpose. Each level serves as a lens to better understand how value is created, perceived, and ultimately exchanged in the marketplace.
In contemplating the nature of value, we are faced with several dimensions that offer distinct yet interconnected lenses through which to assess a product’s worth. Each dimension serves as a different pathway toward understanding the more profound significance of what we create and offer to the world. (ref. links below)
Functional value invites us to consider the question: What does this product do? At its core, this dimension asks whether the product fulfils a specific need or solves a particular problem. It is the most tangible of values, grounded in utility and pragmatism. To understand its functional value is to understand its purpose — the concrete, actionable result it provides its users. Yet, even in this utilitarian realm, we must remember that the true depth of value lies not simply in function but in how well the product addresses the needs it was/is designed to meet.
Financial value extends this inquiry into the realm of exchange. Is the product offered at a fair price? Here, we move beyond mere function and enter the domain of economics and fairness. Financial value questions the balance between cost and worth, reminding us that the price we ask of the user should reflect not only the material resources invested but also the intrinsic worth the product holds. It is a measure of equity, of how much we ask in return for what is provided and whether that exchange feels just and reasonable. Yet, it is also a measure of the invisible forces at play in our world — the socioeconomic conditions, market dynamics, and human perceptions that govern how we assign financial value.
Social value, in turn, shifts the focus toward connection and belonging. Does this product enable its users to connect with others? It speaks to our inherently relational nature, to the ways in which products serve as bridges between individuals and communities. Whether it facilitates communication, fosters collaboration, or expands the reach of social networks, social value is defined by how much a product allows us to scale our presence, influence, and connectivity in the world. It is a measure of how the product influences the social fabric, how it mediates our relationships with others, and how it enhances our sense of shared experience and collective meaning.
Lastly, psychological value invites a more introspective reflection: Does this product enable the user to feel fulfilled? This dimension of value taps into the emotional and existential layers of human experience, asking whether the product addresses our inner needs for purpose, self-actualisation, and emotional well-being. It is concerned with the internal, subjective realm of satisfaction and meaning. Products that offer psychological value go beyond functionality, price, or social utility; they speak to our deeper desires for fulfilment, joy, and a sense of personal growth. They help us feel more complete, more aligned with our values, and more attuned to the sense of self we strive to cultivate.
In essence, these four dimensions of value — functional, financial, social, and psychological — are not merely distinct categories but interwoven threads in the fabric of the human experience. Each dimension reflects a different aspect of our lives, from the tangible to the intangible, from our material needs to our deeper yearnings. Together, they form a complex web of value, asking us to consider not just what a product does but also how it affects our relationships with others, how it situates us in the world, and how it resonates with our internal sense of purpose and fulfilment. This interconnectedness enlightens us about the multifaceted nature of value, making us realize that value, in its truest form, is not a singular, static thing but a dynamic interplay of purpose, exchange, connection, and meaning — each contributing to the whole.
If you wonder how to apply these models within the realm of B2B, it is important to remember that the question is not simply one of “B2C or B2B.” The commerce landscape is more nuanced and varied, with numerous frameworks that transcend the binary distinctions. These include models like B2B2C (Business-to-Business-to-Consumer), C2B (Consumer-to-Business), C2C (Consumer-to-Consumer), B2G (Business-to-Government), G2B (Government-to-Business), G2C (Government-to-Consumer), and P2P (Peer-to-Peer). Each model reflects a different way value is exchanged, shaped by the intricate relationships between various actors — be they businesses, consumers, governments, or peers. Yet, amidst this complexity, one truth remains: no matter the model or the product, humans are always at the centre of the experience. Every product, whether conceived for a business or a consumer, will ultimately touch human lives, embodying and transferring value in ways that resonate with human needs, aspirations, and behaviours.
In this context, as a designer or product creator, you must recognise that certain aspects of value may lie beyond your direct influence. For instance, financial value might be determined by the business team, whose decisions on pricing, cost, and profit margins will shape how the product fits within a larger economic framework. It becomes essential to understand the reasoning behind these financial choices. By aligning with the business team’s perspective, you can better define and align the functional, social, and psychological values you, as the designer, have more direct control over.
The key is to realise that these values are not isolated but interdependent. The financial value set by the business team will influence how you approach the product’s functionality, its ability to create social connections, and the psychological resonance it carries with its users. Understanding the interplay between these dimensions allows you to craft a product that not only meets financial goals but also delivers on its deeper human purpose.
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Why haven’t I provided specific examples from my own experience? William Blake wisely noted, “The true method of knowledge is an experiment.” I encourage you to take this concept and experiment with it. Choose any digital product — whether it is the one you’re working on or one you use daily — and attempt to identify the four types of value it provides. At first, you may struggle or feel blank in categorising these values, but don’t be disheartened. Keep writing, refining, and reflecting. Over time, you will begin to see how these values take shape and gain clarity in your understanding of how value is created and communicated through the product. This experimentation will empower you and engage you in the learning process, enhancing your understanding of value assessment.
Feel free to share your insights with me. If you’d like to explore the concept of value further, I would be more than happy to engage in a deeper conversation. After all, the pursuit of understanding is not a solitary journey, but a shared one. We are all part of a community of learners, and your contributions to this shared journey are invaluable.
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References
Here, I present a collection of references that guided my exploration of this subject. For those who seek a deeper understanding, I invite you to engage with these resources. Among them are links to books, though I must clarify that I do not stand to gain any monetary advantage should you choose to purchase them. Remember, the pursuit of knowledge is a journey meant to enrich the mind, not the wallet, and these resources are here to help you on that journey 🙂
Value-based Marketing: Marketing Strategies for Corporate Growth and Shareholder Value, 2nd Edition by Peter Doyle
Value-Based Marketing, Journal of Strategic Marketing by Peter Doyle
Value First, Then Price: Building Value-Based Pricing Strategies by Andreas Hinterhuber), Todd C. Snelgrove
Putting Soul Into Business by Mary Anne Harmer and Tom Hering
Business Marketing: Understand What Customers Value by James C. Anderson and James A. Narus
Defining value: the most ambiguous word in product development by Jeff Gothelf