The purpose of this paper is to provide more information about what customer value means, how it is materialized in pricing and selling processes, and how buyers perceive value and manage it versus price. Customer value is now the number one imperative for all organizations as they build the plans for their next five to ten years, as the author explains.
Stephan M. Liozu, Ph.D. (sliozu@gmail.com), is the Founder of Value Innoruption Advisors, a consulting boutique specialized in value-based pricing, industrial pricing, digital and subscription-based pricing. He is also an Adjunct Professor & Research Fellow at the Case Western Research University Weatherhead School of Management. He is a Certified Pricing Professional (CPP), a Prosci® certified Change Manager, a certified Price-to- Win instructor, and a Strategyzer Business Model Innovation Coach.
In this article, the author presents strategies for quantifying intangible customer value and presents a practical example of a so-called intangible value driver. The hope is that any pricer reading this can adapt the strategies and example to their own business and use them for better strategic decision making, messaging or more productive customer discussions.
The purpose of this short essay is to make the case that good pricing starts with a front-end-of-innovation (FEI) that is clearly focused on customer value.
In this article, the author explores primary challenges businesses face in defining and communicating value. He also provides strategies and tactics for B2B organizations to identify and leverage customer value.