A four step process to value excellence
Have you noticed that customers have an increased focus on reducing the price? Have you experienced issues in defending your pricing strategy? Do you find loyal customers threatening to find new suppliers because you are too expensive?
Value is fundamental in a world where the complexity of products is continuously increasing. To communicate all features, functions and possibilities is an impossible mission. We need to find new ways of communicating the products we are offering.
In a project performed to find the optimal handover between Product Management and Sales & Marketing we started thinking about it. The result ended up being what we call the Value Development Model©. The model covers the whole process from value discovery to communicating the values to the market. Depending on how your organization is arranged parts of the process is owned by Product Management.
The model has four phases. The first two is typically the responsibility of Product Management. After the four phases are completed you iterate.
The four phases are:
- Discover - understand your value logic and target markets
Discover is the first phase of the Value Development Model©. In this phase you discover which technology improvement you should leverage, the value logic, market insights and where to sell. The primary tool used in this phase are Target Market, Driving Forces and Value Tree® .
- Define - design your value proposition and resonating focus
Define is the second phase of the Value Development Model©. In this phase you define market opportunity, value offering and value documentation. The primary tools used in this phase are Value Proposition Design and Resonating Focus.
- Connect - create your story and identify compelling events
Connect is the third phase of the Value Development Model©. In this phase you connect Target Markets with values, Compelling Event with values, Target Markets with Compelling Events and connect them in Storytelling. The primary tools used in this phase are Compelling Events and Storytelling.
- Convey – define the buyers journey and choose customer engagement models to support the journey
Convey is the forth phase of the Value Development Model©. In this phase you convey your values via relevant engagement tools and Product Material Analysis. The primary tools used in this phase are Product Material Analysis and Engagement Models.
The aim of the first part is to discover and define values in your offering. The aim of the second part is to connect and convey values in your communications. The models and tools used in each phase may differ. Also, models such as Value Proposition Design or Value Tree® can be used in several phases. Exactly how you do it is up to you. Remember it's not about using all the models, it’s about the process. It’s about getting it done. And Value Development Model© is a great way to make it happen.