<!-- Economic value to the customer (EVC) model · from Chapter 12 of The Product 360 Handbook -->

# EVC model · [Product] · [Segment] · [Customer or composite] · [Date]

**Owner:** [PM]   **Built with:** [customer names and roles, or "composite of n customers"]   **Time horizon:** [e.g. 12 months]   **Units:** [per year / per seat / per incident]

## 1. Benefit (not feature)
What changes for the customer, in one sentence:

## 2. Next best alternative
- What the customer would do without us:
- Its real price after discounts, in our units and horizon: $[ ]   Source:
- **Reference value:** $[ ]

## 3. Differentiation drivers
| Driver | + / − | Calculation in words | Inputs (owner) | Annual value | Evidence and source | Confidence (H/M/L) | Risk haircut % | Risk-adjusted value |
|---|---|---|---|---|---|---|---|---|
| | + | | | | | | | |
| | − | | | | | | | |
| **Total differentiation value** | | | | | | | | |

## 4. EVC
- EVC (unadjusted) = reference value + differentiation value: $[ ]
- EVC (risk-adjusted): $[ ]

## 5. Price corridor
- Floor: fully loaded cost to serve, including inference: $[ ]   Source: finance
- Ceiling: risk-adjusted EVC: $[ ]
- Proposed price: $[ ]   Share of risk-adjusted EVC captured: [ ]%
- Why this share (lifecycle stage, buyer uncertainty, strategy):

## 6. Assumption log
| # | Assumption | Value used | Source | Date checked | Owner |
|---|---|---|---|---|---|
| 1 | | | | | |

## 7. Review
Next review date, and the product data that will confirm or correct each driver: