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THE B2B ELEMENTS OF VALUE (Elements ((providing more objective value at…
THE B2B ELEMENTS OF VALUE
True, B2B sellers need to optimize prices, meet specifications, comply with regulations, and follow ethical practices.
with some purchases, considerations such as whether a product can enhance the buyer’s reputation or reduce anxiety play a large role.
what mattered most to buyers.
personal considerations that business customers bring to purchasing decisions are increasingly important.
Understanding the full range of rational and emotional factors in business purchases can help firms avoid the commodity trap
Thoughtfully incorporate the ones that determine loyalty into offerings.
some suppliers benefit from offering risk reduction and providing reputational assurance to individuals who are accountable for purchases.
At the top of the pyramid are inspirational elements
The most objective kinds of value are found at the base, and the higher a level is, the more subjective and personal the types of value it contains.
For a strategist or a product manager, mastering the intangibles of the customer’s total experience is much harder than making an offering faster, cheaper, or more durable.
Table stakes
functional
ease of doing business
individual
inspirational.
Elements
providing more objective value at the base
Elements that offer more subjective value higher up.
Elements within the third level make it easier to do business
cultural fit
Provide types of subjective value, addressing individual buyers’ priorities, whether they are personal or career related
Elements at the base of the pyramid have long been
easy to measure
At the top of the pyramid are inspirational elements
Maslow argued that human actions are motivated by an innate desire to fulfill needs ranging from the very basic (security, warmth, food, and rest) to the complex (self-esteem and altruism).
Improving on the elements that are the source of their offerings’ core benefits will enable vendors to better meet customer needs.
When B2B companies conduct a full elements analysis,
they are often surprised to find big gaps between
their self-assessments and customer opinions of the
overall experience of buying and using their offerings
Any B2B company can use an elements analysis to examine and improve its value proposition.
how much excelling at multiple elements pays off
Five Steps to how best to enhance your offerings
Benchmark
Talk with customers
Imagine ways to increase value
Refine, test, and learn
Apply the acid test