BUSINESS MARKETING - UNDERSTAND WHAT CUSTOMERS VALUE

How do you define the value of your market offering? Can you measure i t? Few suppliers in business markets are able to answer those question s, and yet the ability to pinpoint the value of a product or service f or one's customers has never been more important. By creating and usin g what the authors call customer value models, suppliers are able to f igure out exactly what their offerings are worth to customers. Field v alue assessments - the most commonly used method for building customer value models - call for suppliers to gather data about their customer s firsthand whenever possible. Through these assessments, a supplier c an build a value model for an individual customer or for a market segm ent, drawing on data gathered form several customers in that segment. Suppliers can use customer value models to create competitive advantag e in several ways. First, they can capitalize on the inevitable variat ion in customers' requirements by providing flexible market offerings. Second, they can use value models to demonstrate how a new product or service they are offering will provide greater value. Third, they can use their knowledge of how their market offerings specifically delive r value to craft persuasive value propositions. And fourth, they can u se value models to provide evidence to customers of their accomplishme nts. Doing business based on value delivered gives companies the means to get an equitable return for their efforts. Once suppliers truly un derstand value, they will be able to realize the benefits of measuring and monitoring it for their customers.