02.7 · Capability in Strategy

Business models

How the product creates, delivers and captures value. Every technical and product decision eventually shows up in the costs or the revenue.

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02.7.1Revenue modelsThe ways a product earns money, such as subscriptions, usage or transactions.
02.7.2PricingSetting what customers pay, based on value, costs and alternatives.
02.7.3PackagingGrouping features and limits into plans and tiers.
02.7.4Costs and marginsWhat it costs to build and run the product compared with what it earns.
02.7.5Customer lifetime valueThe total revenue a customer brings over their whole relationship with the product.
02.7.6Return on investmentComparing what a piece of work returns with what it costs.

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