Value Realization: a Transformation of your Go-to-market Process
With the current recession and ongoing disruption to the markets, a focus on value realization (VR) is a no-brainer. What could be more important than showing customers the impact your solution brings to them? You move from a trusted advisor to a true financial partner.
When done well and fully implemented, a customer value realization program can transform your go-to-market approach regardless of what industry and geography you work in. Putting customer success at the heart of your value mindset is a transformational approach.
There are eight implications to your go-to-market approach as shown below:
- VR to differentiate from competition: Rise above the noise of all your competitors and create a true competitive advantage. Right now, your customers want impact and outcome. The discussion is about staying relevant in the mind of all customer stakeholders. Therefore, your value realization program must be formal, crisp, and impactful.
- VR to automate your value-based selling efforts: With automation and integration, you can boost the speed and impact of your value-selling programs. No more manual work. No more inconsistent impact numbers. Everybody is fully aligned with the same professional approach to demonstrating value.
- VR to move from value-based pricing to realized value-based pricing: Your pricing and marketing teams are going one step further. They are able to justify price premiums through value modeling and quantified value propositions. But that justification is reinforced if it is validated on the back end. Value realization does that. It closes the pricing loop.
- VR to connect with your price realization: Value realization externally cannot be disconnected from your price realization objectives. If you cannot demonstrate tangible and concrete financial impacts, you might not be able to fully realize your pricing power potential. Value and price go hand in hand.
- VR to maximize Customer Lifetime Value: Customer success is 100% about customer lifetime value. The objective is to delight customers over time so that you can retain them and expand your share of wallet.
- VR to create customer success process: If your company is thinking about setting up a customer success organization or beefing up the existing team, think about the value realization process and a value realization platform to give them the necessary tools right away. It is the fastest-growing functional category and companies are invested in this area while laying off in others.
- VR to bring credibility to your value strategies: The customer value management process is a sequential process as discussed in the first blog of this series. It is materialized through value-based strategies touching all go-to-market functions from sales to pricing, to marketing, to innovation, and to product. Focusing on tangible outcomes and financial impact brings enormous credibility to your strategies. It is the significant part. Without the outcome, value-based strategies are just words and promises. Are you keeping these promises?
- VR to professionalize your GTM process: Finally, a professional value realization process with full functional alignment, the right systems, and the right mindset is a strong step toward superior value management maturity. Do not forget to inject a good dose of user-experience thinking to show how professional you are!
Promises made, promises kept! That is the heart of value realization strategies. These days, CEOs focus on EBIT, net retention rates, customer lifetime value, and return on assets. They are investing heavily in customer success programs to achieve their financial goals. Do not let these teams do the work manually. Give them an integrated platform to do value realization at scale. Make your customer success teams successful as well!
In a recent report and webinar, Dr. Stephen Timme, Founder & President at FinListics Solutions, shared insights from executive buyers on selling to the C-Suite. In the webinar, we identify metrics that matter in a sales process and provide insights from executive buyers on how to use these metrics to have more meaningful conversations. Listen to the webinar and download the report.
Dr. Stephan Liozu (www.stephanliozu.com) is the Founder of Value Innoruption Advisors (www.valueinnoruption.com), a consulting boutique specializing in industrial pricing, digital business, and value models, and value-based pricing. Stephan has 30 years of experience in the industrial and manufacturing sectors with companies like Owens Corning, Saint-Gobain, Freudenberg, and Thales. He holds a Ph.D. In Management from Case Western Reserve University, and has written several books, including Dollarizing Differentiation Value (2016) and Value Mindset (2017).