Eric Bergrenn, an expert in customer value management (CVM). He is a B2B Marketing Professor at Northwestern University’s Kellogg School of Management and the founder of a leading customer value strategy firm, Axios Partners. Recognizing that a servant leadership approach produced better results for organizations, Eric demonstrates how to achieve sustainable growth and profitability by delivering more value to your customers.
In case you missed it, Eric discussed how to price your product or service based on its value and differentiation.
Today's B2B businesses face dynamic challenges, including increased competition and rising consumer expectations. For both buyers and sellers, the key to success is finding a compelling business use case to justify investments and an ability to measure that value following implementation. The customer value management (CVM) model helps businesses achieve this alignment while maximizing their growth potential and delivering more value to their customers.
Here's what we learned about CVM:
- CVM is a powerful tool that helps businesses measure customers' value on a product or service relative to their competitors.
- Researching competitive pricing structures can prove challenging in B2B. One way to quantify customers' value on a product or service is through surveys that ask customers a series of predefined questions.
- Traditional total cost of ownership (TCO) analysis is limited in its one-dimensional focus on costs. CVM focuses on revenue.
- CVM requires doing the work to determine the actual differentiation of your products or services against a buyers next best alternative
- Businesses often rush to launch products but miss the opportunity to document and test their as-is state. This data can prove invaluable in their future go-to-market strategy.
- An example of a value drain happens when companies include products or services as an incentive to close a deal. But customers often place no value in them.
Do you want to learn more about customer value management techniques? Eric recommends the book Value Merchants.