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
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.
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.
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.
The only way value management can move beyond sales into customer success is with scalable, self-service tools.
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.”