There are three powerful reasons why you should take a close look at how you can use the customer value inherent in your products and services to greater advantage.

'Procurement' only buys on cost? - Think again!

Recent studies from the International Procurement Leadership Forum (IPLF) and others show that purchasers are looking to determine the value that prospective vendors can deliver. A survey from the IPLF shows:

"...an additional 23% of value available from concentrating on strategic supplier management, across multiple value levers. This equates to an average value of €500m for each respondent and far outstrips the average annual cost down target of 5.5%."

Those sales teams that can clearly demonstrate tangible value will have a clear and growing competitive advantage. However, we believe it likely that Procurement will occupy this space ahead of Sales. The implication for Sales is obvious.

The evidence for success

Those of our clients that use their customer value effectively increased their average deal size by 112% and their sales margin by 13%.

Just another outrageous claim? Well, before you dismiss this one, these are not our figures – they're our clients'.

You see, our clients all had one thing in common – they struggled to articulate their customer value or didn’t believe in customer value or believed that they were fully exploiting their customer value. In fact, most companies are failing to exploit between 50% - 70% of their potential customer value.

No way back for laggards

Such is the power of properly exploited customer value that those who fall behind in deploying it will find it almost impossible to defend against it or catch up once the competition has gained the competitive advantage.

Why we need a revolution in sales performance

Consider these two facts:

  1. For the moment anyway, it is unlikely that your customers will have a buying process that is capable of distinguishing the potential value of your products and services from your competitors.
  2. Our experience shows that companies are competing with less than 30% of their value!

Put them together and it's plain to see that the customer has only one choice - to buy on price.

Selling using your customer value, or Value Based Selling, deals with these issues by providing you with an enhancement to your existing sales process that fills the gaps in the customer's buying process.

The Customer Value Module guides both parties to adopt the right behaviours needed to secure a quality decision and provides the tools that allows the customer to understand the full potential value of your products and services - if you will, a guided selling and buying process that powerfully differentiates you in terms of both your selling style and overall value.

What are the benefits?

Ok, what would a 'Customer Value' based sales module offer you?

  • It is compatible with all mainstream sales processes.
  • Sets you apart in process, solution and performance.
  • Empowers your team to engage the executive level.
  • Engages all key customer people.
  • Gives the customer powerful new insights into its own business that were otherwise unavailable to it.
  • Empowers the customer to operate and own the determination of value.
  • Empowers the customer to differentiate between vendors.
  • Documents how value achievement will be accomplished.
  • Measures the value achieved to assure client retention.
  • If properly implemented will, on average, increase deal size by 112% and margin by 13%.
  • Gives real competitive advantage and avoids becoming a laggard.

The Customer Value Module

We approach Value Based Selling as a simple six step enhancement to your existing sales process that you can jump in to at the most appropriate point, depending on your existing sales processes and the amount of work in this area you've already put in.

  • Understand What is it and is it right for us?
  • Identify Let's identify your customer value components
  • Measure Let's quantify your total customer value
  • Communicate It's no use having great numbers if your customer wont believe them
  • Skills It's the only way your customer will believe the numbers
  • Track & Deliver track your customer value to your customer's bottom line

Understand What is it and is it right for us?

You don't mess with your sales process without a very good reason and without understanding what you're going to change, why you’re going to change it and what you expect to get back for the risk and cost of the change.

So step 1 enables you to understand the issues, the challenges and the rewards. We have created a set of Executive Briefings that aim to help you bring into sharper focus the power that is inherent in your customer value but also explores the right way and the wrong way to implement the customer value enhancement.

The executive briefings will place you in a position properly to judge whether Value Based Selling is right for your organisation and, if it is, how safely to enhance your existing sales process.

Insights into Improving Renewal Rates & Sales Productivity

On average our clients increase their deal size by 112% and their sales margin by 13%.

Just another outrageous claim? Well, before you dismiss this one, these are not our figures - they're our clients'.

You see, our clients all had one thing in common - they struggled to articulate their customer value or didn't believe in customer value or believed that they were fully exploiting their customer value.

In fact, most companies are failing to exploit between 50% - 70% of their potential customer value - and this is largely because the techniques required are, for many, counter-intuitive.

Our aim is to help you bring into sharper focus the power that is inherent in your customer value and explore with you some of the ways in which that power can be harnessed to deliver improving renewal rates, higher sales productivity and enhanced profitable growth.

Your outcomes

You will:

  • Understand the effect of 'value' on creating real differentiation, long term strategic customer relationships and the challenge of the sales skill shortage
  • Have modelled, for yourself, the likely financial impact, either positive or negative, for your company of properly exploiting your customer value.
  • Have greater insight into the nature of your hidden customer value and its likely impact on your ability to win.
  • Understand what both 'good' and 'bad' implementations of a customer value approach look like.
  • Have a greater appreciation of the practical issues to be addressed if success is to be assured from implementing a value approach to sales and customer relationships.

Identify Let's identify your customer value components

"I know we have a lot more value than this but we just can't seem to get at it"

This is a view we hear expressed quite a lot. And it's not really surprising because many aspects of 'value' and its identification are counter-intuitive.

We find that many vendors are able to identify no more than about 60% of their potential customer value. This leaves up to 40% that they may 'sense' is there but have no way of uncovering. The challenge of measuring is also significant (see the Measure service).

Unleash your hidden customer value

The Outline Service

The Outline service is designed for those who know they have more value and would like to speed up the process of uncovering it.

Our Outline service will help you establish the full outline and characteristics of your customer value.

By understanding the up stream and down stream impact of your products and services, we help you to uncover the full breadth of your customer value and set out the boundaries of what we call your 'Value Capability'.

The aim is simply to understand how your products and services deliver value to your customers and then to define the key value groups and their characteristics - if you will - a set of value drivers.

The whole process is fixed price and usually complete within one elapsed week. You are then positioned to add appropriate measures.

To learn more about the Outline service, view the webcast
(which lasts about 7 minutes).
The Outline Service

Measure Let's quantify your total customer value

This step is about assigning measures to each of your value components and determining the scale of potential value, both tangible and intangible, available for your customers.

Our Measure service is designed for those who are already clear about the general nature of their customer value but need help to establish effective measures.

Once the key value groups and drivers have been agreed, we will establish their relationships, the means by which they may be measured and the nature and extent of information required to scale the value.

The measure service

The outputs from Measure will be a set of clearly defined value drivers, their associated measures and relevant generic data collection sheets that define the data required to scale the value for any given customer.

The whole process is fixed price and usually complete within one elapsed week. You are then positioned to be able to communicate your value. Should you need help with this, take a look at communicating value.

To learn more about the Measure service, view the webcast
(which lasts about 7 minutes).
The Measure Service

Communicate It's no use having great numbers if your customer wont believe them

The evidence is overwhelming – conventional ROI tools don’t work. We equip you with a Value Simulator that provides a clear and crisp articulation of exactly where your customer value comes from and allows your customer to see all of the logic, assumptions and data used to calculate the value.

Our Simulate service is designed for those who are already clear about their customer value but need help to communicate it to their customers in a highly compelling way.

The simulate service

The 'ROI Calculator' is now largely discredited and customers need a value calculator that they can trust.

  • "More than 95% of supplier models are counterproductive - we have to deconstruct them"
  • "We always find assumptions that are always favourable to their outcome"
  • "They have a narrow view of the solution which does not consider upstream, downstream and lateral constraints"
  • "No supplier ever comes back to measure actual results vs. pro-forma"
  • "There is a real disconnect between what is promised and what we get"
  • "Frankly we're tired of the 'gimmicks and games'"

Director - Value Analysis

Simulate will create for you a value simulator with the capability to capture customer data and allow the customer to understand, challenge, change and own the results. The simulator also has the potential to provide the means to track value delivery

The whole process is fixed price and usually complete within four elapsed weeks.

To learn more about the Simulate service, view the webcast
(which lasts about 9 minutes).
The Simulate Service

Skills It's the only way your customer will believe the numbers

Our experience suggests that customers in general are not good at making complex purchasing decisions - and the clear implication for vendors is that customers are ill equipped to distinguish between different vendor offerings.

The sales techniques and processes that you use need to guide your potential customers through all of the key steps needed to uncover the value of your products and services so that they can be both comfortable with the result and provide sufficient evidence to convince other, more sceptical, colleagues.

Our experience suggests that customers in general are not good at making complex purchasing decisions - and the clear implication for vendors is that customers are ill equipped to distinguish between different vendor offerings.

If you have a better mousetrap, it's possible that your customers may never understand the value of it unless you take positive action to make sure they do.

The sales techniques and processes that you use need to guide your potential customers through all of the key steps needed to uncover the value of your products and services so that they can be both comfortable with the result and provide sufficient evidence to convince other, more sceptical, colleagues.

Achieving all of that takes real skill and discipline - much of which is actually counter-intuitive.

Skill will help you create a sales team with the capability to let your potential customers understand, challenge, change and own the true value of your products and services. The skills, disciplines and tools learned and supported from our Skill programme will reduce sales cycle time and increase win rate and deal size.

Our Skill service takes head on the counter-intuitive nature of selling using Value and quickly brings your sales team to the point where they are selling larger and longer term deals. Our Opportunity Support Desk helps each sales person to assess new opportunities, ascertain the likely value for both parties and then make and sustain a meeting with appropriate 'C' level executives.

The whole process is fixed price and usually complete within three to four elapsed weeks depending upon the number of people and their locations.

To learn more about the Skills service, view the webcast
(which lasts about 8 minutes).
The Skills Service

Track & Deliver track your customer value to your customer's bottom line

Stay sticky with your customer and help them track the value all the way to their bottom line. Create great case studies, improve renewal rates and expand your footprint with the customer – all based on undisputed empirical evidence of value delivered.

Our Track service is designed for those who need to demonstrate the tangible delivery of customer value (both hard and soft) in a manner that minimises the potential for disagreement.

Value Tracking

Track will create for you the means to agree the scale of potential customer value, the means by which it will be delivered and the means to pre-emptively track actual customer value.

Pre-emptive tracking is important because it allows early action to be taken to avoid losing 'value at risk'. This maximises the total amount of value delivered for both parties.

The whole process is fixed price and usually complete within two elapsed weeks.

To learn more about the Track service, view the webcast
(which lasts about 8 minutes).
The Track Service