1. Value merchants
Chapter 1 - points of discussion
Inspired by Value Merchants by
J. C. Anderson, N. Kumar, J. A. Narus
praesentatio
Andreas Brinck
2. Business as usual (p.2)
1.
Sales personnel unaware
4.
of real differential value
“Commoditized” offer
elements AND ther“exact”
value to customer
3. 2.
Unreasonable give-aways No data supporting and
on price when confronted measuring differential
with competitor’s offer elements
(ein Teufelskreis) praesentatio
Andreas Brinck
3. But hear the warnings!
No business
as usual!*
* ”doing more of the same with less” (p.3) actually means “doing more of the superior with less” and is entering/keeping you in
the game: selling under value a product with differential value elements.
What are the implications for customer/supplier/marketplace?
praesentatio
Andreas Brinck
4. Solution:
Customer Value Management
“Customer value
management relies on
Take
customer value
Get an equitable
return on the value
delivered
assessment to gain an
& understanding of
customer requirements
and preferences and
what fulfilling those are
Give
worth in monetary
Deliver superior value
to targeted market
segments and customer
terms.” (p.4)
firms
praesentatio
Andreas Brinck
5. Money. And how to track it…
GREEN GRAY
Direct impact on Lower cost of
bottom line ownership
“Picking the lowest More time intensive to
one, and then account/harder to
negotiating…” (p. 5) document
praesentatio
Andreas Brinck
6. Turning gray into green
• Get grasp customers understanding of
value: customer value assessment
– value case histories
TAKE AWAY POINT: Early on, collect case data on reference customers and record the cost savings and added
value they have received from the supplier offer in order to document to potential customers
• Demonstrate superior value
– value calculators
TAKE AWAY POINT: Develop spreadsheets that support your sales force as
part of a consultative selling approach
• Document superior value
– value documenters
TAKE AWAY POINT: Get more credit from your customers by delivering
performance reports to your customer. This will sharpen their understanding of
your product and its superiority.
praesentatio
Andreas Brinck