Our Philosophy: Managing customer value has never been more important
B2B is all about increasing your customers' profitability and capturing your fair share... it's that simple and that complex. It's simple because we know that customers want to make more money. It's complex because different customers value different things. Understanding what customers value is not easy, and delivering on that understanding requires a complex system of people, ideas, plans, decisions, communications, processes, and technologies. This complexity often times leaves us wondering:
- What is our value proposition? How effective is it? How can we improve it?
- Why do customers view us differently? What do we do about it?
- How can we better connect Customers, Sales, and Marketing?
- How can we build better customer plans? How do we hold ourselves accountable to execute?
- Why aren't we getting rewarded for the investments we make? How can we?
Answering one or all of these questions unlocks the ability to make better informed decisions, execute swiftly, and improve the bottom line. Answering these questions requires an organization to manage the relationship between customer value creation and their ability to capture a fair share... truly Winning with Customers.
Our Solution: Differential Value Proposition (DVP) System
The Differential Value Proposition System (DVP) is an innovative customer value management system built with leading B2B companies over the past decade. At the highest level, DVP has three parts:
- A Dataset that makes it simple to measure and communicate the method's results.
- A Process that creates an economically rigorous, customer-informed perspective on your value proposition. That perspective is injected into a company's decision-making and planning processes so that the organization is held accountable to execute, communicate, and measure progress.
- Render Software that makes the method scalable, sustainable, and easy to implement.
If you want to dig deeper on the theory and tactics of DVP, we've written a few books on the subject, and facilitate a learning community at winningwithcustomers.com.
If you are ready to do something, you've found the right place. There is a combination of education, implementation services, and software that is just right for your goals and culture. You can start small and grow into a capability with any of our products.
How DVP makes our customers more money
Our customers tell us they achieve break-even results using the DVP System within 6 months and triple-digit ROI in the first year. Beyond the first year, the returns increase while the investment gets smaller... usually in this order:
- Increase/Retain Share. This includes winning new deals or an increase customer share of wallet. It typically occurs first as it’s the easiest/cheapest reward customers can provide.
- Optimize Capital and Resources. This typically includes only investing in something that customers value. In the near term, this reduces cost, but also has the added bonus of the ROI on the investments you would not have made in the first place.
- Gain New Customers. When you get good at understanding your DVP, you become a more effective selling and marketing organization. Your organization learns what makes you different and the profile of the customer that will pay you for it. You also know what you need to invest in to penetrate new types of customers or markets. This pays off in your ability to target and close the right prospects/markets.
- Value Pricing. While DVP is effective helping to retain margins, increasing your price relative to competition due to the value you create is something that takes time, documentation, and communication. DVP gets to the core of enabling this type of pricing strategy by providing the tools and communication between you and your customers, but do not expect to be able to raise your price immediately after one discussion with your customer.