Reinventing Customer Value Proposition

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Customer Stratification” has the power to enable us to transform our company from being product-driven to customer-driven. It has helped us understand our customers in greater detail, enabling us to optimize our selling resources, which will result in an improved ROI.

Don Schalk
Former President and COO, C.H. Briggs Company

Reinventing Customer Value Proposition: Customer Value Builder

Key business trends—including digitization, consolidation, and commoditization—are rapidly shaping customer expectations and increasing the pressure to maximize value creation across the supply chain in all industries. In a B2B environment, manufacturers and wholesaler-distributors are being forced to think about their value propositions in a holistic manner against traditional low-cost transactional selling models. In this new business environment of digital transformation and blurring lines between B2B and B2C, customers expect their manufacturer and distributor partners to go beyond merely meeting their needs for products and services. Distributors must also demonstrate the value of doing business with them by efficiently integrating many parts of their business systems—including finance, operations, sales, and marketing. The following exhibit depicts how industry dynamics is rapidly changing across multiple dimensions.

Traditionally, distributors used product line cards, a standard sales pitch presentation, common product demos and some more colorful brochures to communicate the value of doing business with them through outside salesforce. In digital era, the buyers have already done more than two-thirds of the research online before or if they are calling a distributor. How should we up the game? Can our salesforce articulate customer value? In the first place, have we (management) understood the changing definition of customer value? Progressive distributors are sensing these forces of change and adapting their business model. This adaptation requires them to develop new value propositions as well as deliver existing value propositions effectively. Given that the salesforce is one of the competitive advantages of wholesaler-distributors against other go-to-market channels, the adaptation of business model inevitably includes salesforce transformation in terms of their ability to persuade customers in this competitive landscape. Thus, customer value proposition development and salesforce’s ability are key determinants of a successful distributor transformation.

At ActVantage we analyze these two critical success factors. We examine the current status of these critical processes and build a comprehensive framework to develop customer value propositions as part of your business strategy. We infuse quantitative rigor, by integrating analytics to the qualitative sales and marketing processes such as value proposition development and demonstration. This process will help your firm demonstrate benefits of doing business with you in terms of both financial benefits and strategic advantages. Are you ready to reinvent ‘customer value’ in the digital era? Do you think that you are not ready yet? That is why we help you develop the capability in small chunks while gaining quick wins. Click below to give us a shout and learn the blind spot and next practices.

Return on investment

Core Customer
New Customer
Effective Marketing
Service Growth
Improved Margin

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