A Product Owner should not measure product value by the increase in the team’s velocity. This is because:

Velocity is a measure of how much work a Scrum Team can deliver in a Sprint. It is based on the estimation of Product Backlog items that are selected for a Sprint and completed according to the Definition of Done.

Velocity is not a measure of product value. It does not reflect how well the product meets the needs and expectations of the customers, users, and stakeholders. It does not reflect how much value or impact the product creates in terms of revenue, satisfaction, or social good.

Velocity is not a goal or a target for a Scrum Team. It is a planning tool that helps them forecast their future work based on their past performance. It is not a metric that should be used to compare or judge teams or individuals.

A Product Owner should measure product value by using indicators that are relevant, meaningful, and actionable for their product context. These may include metrics such as customer feedback, usage data, market share, return on investment, or social impact.

References:

[Scrum Guide], page 7, section “Developers”

[Scrum Guide], page 10, section “Definition of Done”

[Scrum Guide], page 15, section “Sprint Backlog”

[Professional Scrum Product Owner™ Training], page 5, section “Product Value”

[Professional Scrum Product Owner™ Training], page 9, section “Business Strategy”