The lowest level value elements (table stakes) are relatively easy to measure and so competing on them is fairly simple. However, to really differentiate a business needs to focus on higher level value elements. The problem is the more emotional elements are not as easy to measure
By using surveys and statistical analysis, the B2B value elements framework enables you to understand what customers really value. This enables you to decide where to invest your time, energy and money with product development.
The research by Bain and Company focussed on the 36 non-table-stakes elements of value on the basis that table stakes are necessary for just being in business. The results revealed that scoring 8 out of 10 on multiple value elements by 65% of responders is the basis of a winning strategy.
Net Promoter Scores (NPS), which is a good indication of customer loyalty and repurchasing rates increased in line with the number of high value elements. The NPS of companies with 6+ value elements was 60% higher than that of companies with one to five elements.
One of the things you can do is carry out a full value elements analysis and compare what you think to your customer’s feedback. You can also compare your company’s value proposition against your competitors’ and survey your customers on how your products and services perform relative to rival offerings on the 36 non-table-stakes elements.
It’s vital to talk with customers and carry out interviews to discover needs, wants and like as well as areas of satisfaction and frustration along with the compromises they perceive they make to use your products and services.
When you feel confident you have identified the value elements your customer most want start to come up with ideas on how you can deliver this value. When you have a list meet with customers and get their feedback.
Finally, check that the impact of introducing product and service enhancements and benchmark yourself against the competition again.
Image used with permission from Bain & Company.