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Proof of value

proof of VAL-yoo

A structured evaluation that proves not just that the product works, but that it delivers measurable business value.

A proof of value goes beyond a POC. A POC proves the product works technically. A POV proves it delivers business results. If the customer's goal is to reduce deployment time by 50%, the POV measures actual deployment time before and after.

POVs are more work than POCs but they produce stronger buying signals. When an economic buyer sees a report showing '$2M in projected annual savings based on the POV results,' the purchase decision becomes straightforward. The product has already proved its worth.

The best POVs are co-designed with the prospect. Agree on the metrics that matter to the economic buyer. Measure the baseline. Run the evaluation. Measure the improvement. Present the results. If the numbers are good, the deal closes itself. If they are not, you saved everyone the trouble of a bad purchase.

Examples

A POV measures time savings.

Baseline: deploying a new service takes 4 hours and involves 3 engineers. With the product: 20 minutes and 1 engineer. At 10 deployments per week, the POV shows 156 engineering hours saved per month. At $150/hour loaded cost, that is $23k/month in value.

A POV quantifies error reduction.

Before the product: 12 production incidents per month related to configuration errors. During the POV: 2 incidents. Each incident costs an average of $50k in engineer time and customer impact. The POV shows $6M in annual savings from incident reduction.

A POV fails to show value.

The product works technically but the POV shows only marginal improvement over the current solution. The AE and SE review the results honestly. They recommend the prospect not purchase. The prospect respects the honesty and becomes a reference for future deals where the value is clearer.

In practice

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Frequently asked questions

What is the difference between a POV and a POC?

A POC proves the product works technically. A POV proves it delivers measurable business value. A POC might show that your product can process 100k events per second. A POV shows that doing so saves the customer $500k per year in reduced incident costs.

How long should a proof of value take?

Two to four weeks for most B2B software. Long enough to generate meaningful data, short enough to maintain momentum. Define success metrics and timeline before starting. Never let a POV become an open-ended free trial.

Related terms

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