Customer Value Proposition for Business Markets based on: Anderson, James C. et al, 2006, Customer Value Propositions in Business Markets

Market Driven Organization, November 2010

Marlène KäsermannElisa LanthalerTina LutzPascal Nellen

Institute of Marketing and ManagementDepartment of Management and EntrepreneurshipUniversity of Berne

Slide 2

1. The Main Idea

2. The Idea in Practice

3. Three Kinds of Value Propositions

4. Conclusion

Content

Slide 3

• Customers are pressured to control costs.

• For the supplier, there are two strategies to meet this need:

The Main Idea

Through price

S: Lowers the price

C: Saves money

S: Loses profit

Through CVP

S: Crafts a compelling CVP

C: Saves money

S: Increases profit

The Idea in Practice 1/2

 

• Understand the customers' businesses

Research potential customers' enterprisesand identify their unique requirements and needs

• Substantiate your value claims

Explain how your offerings outmatch those of competitorson the criteria that matters the most to the customers

→ Show monetary worth

→ Demonstrate customer value in advance (based on value histories or on-site pilots)

Slide 4

The Idea in Practice 2/2

• Document value delivered

Create written accounts of cost savings or added value to costumers (value histories)and conduct on-site pilots at prospective costumer location to gather first-hand data on performance

• Make customer value proposition a central business skill

Improve and reward managers' ability to craft persuasive customer value propositions (Best practice examples: Do it through company guidelines or trainings)

Slide 5

Three Kinds of Value Propositions

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Conclusion

Customer value propositions, properly constructed

and delivered, make a significant contribution to

business strategy and performance.

Slide 7