Business marketing: understand what customers value

Area of Science:

• Business Strategy
• Marketing Analytics
• Customer Relationship Management

Background:

• Defining and measuring market offering value is a critical challenge for suppliers in business markets.
• Few suppliers can accurately quantify the value their products or services provide to customers.
• The ability to pinpoint customer value is increasingly important for business success.

Purpose of the Study:

• To introduce and explain the concept of customer value models for suppliers.
• To demonstrate how customer value models can be constructed and utilized.
• To highlight the strategic advantages derived from understanding and measuring customer value.

Main Methods:

• Developing customer value models through field value assessments.
• Gathering firsthand data from individual customers or market segments.
• Analyzing customer data to quantify the worth of market offerings.

Main Results:

• Customer value models enable suppliers to precisely determine the worth of their offerings to customers.
• Field assessments provide the data necessary to build robust customer value models.
• Value models can be applied to individual customers or entire market segments.

Conclusions:

• Customer value models empower suppliers to gain a competitive advantage.
• Suppliers can leverage value models to offer flexible solutions and prove the enhanced value of new products.
• Understanding and measuring customer value facilitates equitable returns and strengthens customer relationships.