Delivering the value case study analysis

Customer value models are based on assessments of the costs and benefits of a given market offering in a particular customer application. The essence of customer value management is to deliver superior value and get an equitable return for it, both of which depend on value assessment. In other words, the supplier should provide the initial estimate and ask the informants whether that element is more or less valuable to them than the estimate.

In any field value assessment, suppliers will find that some assumptions must be made in order to complete an analysis. Sometimes, the only way to find the data is for team members to ask around until they come across the individual who knows where the information is.

An in-house consultant responsible for the procurement process for this new warehouse had proposed a layout that required three lift trucks to handle the pallet movements. Value assessment can also become a service that suppliers offer as part of a consultative selling approach.

value delivery framework

One common sales tool is a value case history. Selecting the right market segment to target is the next step. After GCS completes a baseline assessment, it then tries to specify improvements that the customer can make in 6 to 12 months. Virtually always, the results more than pay for the cost of doing the field-value-assessment research.

For example, the supplier could ask managers in different functional areas of customer companies to evaluate potential improvements. The supplier can then build a database that contains value estimates—and the individual customer characteristics, which we call descriptors, that might affect those estimates—from all participating companies.

Two suppliers are trying to sell you mulch film: thin plastic sheets that are placed on the ground to hold in moisture, prevent weed growth, and allow melons and vegetables to be planted closer together.

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Customer delivered value in a Web