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Customer Value-based Prioritization

An approach that puts the customer first by delivering the highest-value user stories before lower-value work. The most valuable stories are identified and placed at the top of the Prioritized Product Backlog so they are implemented earliest.

Key Points

  • Focuses on maximizing customer benefit by sequencing the backlog so the most valuable items are delivered first.
  • Value criteria can include revenue impact, risk reduction, customer satisfaction, and strategic alignment.
  • The Product Owner and stakeholders regularly reassess value and reorder the Prioritized Product Backlog as information changes.
  • Early delivery of high-value items accelerates feedback and improves ROI.

Example

A team compares two user stories: enable one-click checkout (expected to raise conversion by 15%) and add a new theme to the UI (cosmetic improvement). Using Customer Value-based Prioritization, the Product Owner places the one-click checkout at the top of the Prioritized Product Backlog and schedules it for the next Sprint to capture value sooner.

PMP Example Question

A Product Owner reorders the backlog to ensure features that deliver the greatest benefit to customers are implemented first. What practice is being applied?

  1. Timeboxing
  2. Customer Value-based Prioritization
  3. Critical Path Method
  4. Earned Value Analysis

Correct Answer: B — Customer Value-based Prioritization

Explanation: Customer Value-based Prioritization orders the backlog so the highest-value user stories are moved to the top and delivered first.

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