The document discusses 7 reasons why focusing on customer value is important for business success. It explains that customers want value, not just products, and that organizations that are customer-focused grow faster. It also provides tips and strategies for understanding customer value, aligning marketing and sales around value, quantifying the value proposition, and ensuring great customer experiences and service.

1. 7 Reasons Why
Customer Value is
Your Secret Weapon
And how to start delivering it to your customers

2. 52% of Fortune
500 companies in
2000 are no
longer on the list

3. What is value?
"Something worth the money it
cost"
Perceived value = benefits –
costs
Total cost of ownership (TCO) =
search + installation+ ancillary +
running + maintenance + insurance
Perceived value = benefits -
TCO

4. What Is Value?
‘Value = relevant and distinct benefit –
Total Cost of Ownership’
Kelly, Johnston, Danheiser (2017)

5. Types of value
Economic value -‘the price someone is willing to pay’
Porter 1985
Perceived value - Perceived benefits minus costs/total cost of
ownership (so called ‘give and get’)
Zeithaml 1988
Relational value – core solution plus knowledge sharing, trust, co-
operation and commitment over time
Gronroos 1996
Experiential value – core solution, relational value and positive
subjective feelings such as professionalism
Pine and Gilmore 1998, Helkkula, Kelleher, Philstrom 2012
Co-creation value – supplier and customer get value at the same time
(value appropriation)
Vargo and Lusch 2004

6. POLL:
Which element of value do
your customers care about
most?

7. 7 reasons
1. Customers want value, not products
2. Organizations that are customer-focused grow faster
3. To resonate with customers – and stop wasting money
4. Customers are moving ahead without you
5. Which means….marketing and sales need to be
aligned
6. To be more relevant, persuasive and sell more
7. It's not just about the sales, it's about service …and
experience

8. #1
Customers want value,
not products
 Only 16% of C Level customers chose a vendor because of their
product
 Customers want salespeople that understand their business and can
provide a solution

9. What to do
 83% of marketers don’t have a clear
definition of value proposition.
 Clearly define what “value” and
“value proposition” mean in your
organization.

10. What Is A Value Proposition?
‘A value proposition is a promise of
expected future value illustrating
future relevant and distinct benefits
that will outweigh total cost of
ownership.’
Kelly, Johnston, Danheiser (2017)

11. #2
Customer-Focused
Organizations Grow
Faster
 Customer-centric orgs are 60% more profitable compared to those
that aren’t (Deloitte and Touche)
 Aberdeen group research said that organizations who effectively
leverage on-line resources (value-ology approach) grow 21%

12. What to do
 Look outside-in
 Do we know our customers, their
behaviors, preferences, buying patterns,
needs, etc.?
 Why do our customers do business with
us?
 What are our competitors doing (and we
aren’t) to win customers?
 How do we gain market leadership that our
competitors might find hard to match?
 Mixed Methods Research approach
 Quality time with customers
 Look at the Data
 Constant flow back from the marketplace

13. #3
Resonate with
customers – and stop
wasting money
 B2B organizations waste $958 million on ineffective marketing every year
 94% of customers have completely disengaged with content because it
fails to resonate (CEB) While 91% say they will pass resonating content
on to peers

14. What to do
 Look at your website and sales
presentations for meaningless
claims like "world class", "end to
end”, “robust”, “the best”
 Chunk up to value themes

15. #4
Customers are moving
ahead without you
 Customers are typically 60% of way through buying process before
they contact you
 67% have a clear picture of what they want when they first speak to
you

16. What to do
 Map out your buyer’s
journey – how are they
making decisions?
 Identify opportunities for
real dialogue along the
buyer’s journey

17. Confirm
Did I make
the right
choice?
Awareness
Should I
solve this
problem?
Education
What are my
options to solve
this problem?
Comparison
What is the best
solution out
there?
Purchase
I’ve made
a decision
The Buyer’s
Journey

18. #5
Marketing and Sales
need to be aligned
• Highly aligned organisations typically experience 32% y-o-y growth
(Aberdeen Group)
• Less than 40% of organisations say they are aligned to what customers want
(Cespedes)

19. What to do
 Understand where you are at
now - alignment roadmap
 Set common strategic goals
 Make sure roles are clear
 Have more customer value
conversations
 Agree what success looks
like

20. Customer
Alignment
Roadmap Road to nowhere Highway to Heaven
Road to hell Rocky Road -
Long and
winding road
Sales &
Marketing
Alignment
Aligned
Not Aligned
AlignedNot Aligned
Customer Alignment

21. POLL:
How well aligned are your
marketing and sales
teams?

22. #6
Be more relevant,
persuasive and sell more
• 58% of deals end-up in no sale because value has not been proven
(Qvidian Research)
• 95% of executives want formal financial justification on significant purchase
decisions (IDC)

23. What to do
 Quantify the value your product or
solution provides
 Use the musicAL approach:
 Monetary calculation
 Unique
 Spend (costs)
 Impact
 Capability
 ALigned to the needs of the
customer

24. #7
It’s about service and
experience too
• 5-20% - The probability of selling to a new prospect
• 60-70% - The probability of selling to an existing customer

25. What to do
 Follow-up with your
customers – are they getting
the value you promised?
 Master the integrated
approach – online and
offline

26. Additional Tools
FREE ebook – Rock your customers’ World
www.customervaluelink.com/free-resources
Value-ology – online course and book to help
you understand how to tune into and deliver
customer value
www.customervaluelink.com