Turn Value Management into a Customer Benefit
Support your customers by delivering measurable value and strong value communications
When resorting to discounting is an organization’s go-to renewal strategy, the lack of a value management practice is likely the culprit. Today’s buyers are looking for business partners. If your organization can deliver quantifiable value data that is easy to understand, both you and your buyers can benefit. In his analysis of a survey performed by Dimensional Research, Peter O’Neill highlights the importance of value management as a service to customers.1
Value is playing an increasing role in both prospect and customer interactions.
The good news is that 99% of companies surveyed use some kind of value management. The bad news? 92% of them have had deployment issues. The biggest challenge is that 77% of those companies are counting on individuals, teams, or external consultants to meet the need.
Traditional value management approaches haven’t been able to deliver on what customers want to see.
82% of businesses surveyed have had customers ask them for tools to establish value that they simply can’t deliver. For 36%, this happens frequently. To meet customer demand, companies are increasingly focused on finding the right tools. In fact, 60% said that value management has become a much more important focus.
Only 24% of companies base renewal conversations on detailed value analysis.
While 59% of companies provide basic usage metrics, a detailed value analysis is what customers are clearly hungry for. Regularly demonstrating and quantifying value is particularly important for as-a-service businesses. Without clear articulation of value at every touchpoint in the relationship, renewals become a de facto re-evaluation point. Without internal champions to advocate for your solution with their procurement teams, your contracts are likely at risk.
Technology can transform value management into a customer service
The only way value management can move beyond sales into customer success is with scalable, self-service tools.
- 44% of respondents are interested in integrating value management with their CRM and customer success platforms to scale value communications across the organization
- 42% think being able to quantify value achieved compared to what was quoted could increase renewal rates
- 32% are looking for a single application across marketing, sales, product management, customer service, and other departments
The best way to satisfy your customers is to provide all the value data they need. Be transparent. Involve them in the process. And tap into technology tools that make value management more automated, centralized, and scalable for ongoing impact.
Check out IDC's recent report on Value Management to further your knowledge in CVM and why it is important for B2B companies to invest in it.
1 O’Neill, Peter. “Continuous Value Management Reporting Will Ensure Customer Retention Success.”