Value Creation

Very few businesses UNDERSTAND how much value their products create for customers.

VALUE CREATION is the foundation of any pricing strategy and requires a deep understanding of how products and services create value for your customers.

To prevent sophisticated buyers from commoditising your offerings, you need to QUANTIFY in monetary terms the value that you create.

Understanding value created by a product requires intimate knowledge of your customers’ needs.

This deep understanding of customers’ needs translates your product’s FEATURE into a customer BENEFIT which then can be translated into a VALUE DRIVER.

A value driver is a customer benefit that has a quantifiable worth for a customer segment. These drivers have a direct economic impact on your customer’s costs and revenues.

Economic Value Estimation (EVE®) is a powerful model for assessing customer value. It quantifies the amount of monetary value that is created by an offering for a customer segment vs. their next best alternative.

And yes, you can quantify in £/$/€/any currency the economic value that you are creating for your customers vs. competition.