How do you quantify the economic value that you provide to customers? Leading B2B companies adopt a value-based pricing strategy, grounded in understanding how you create more value for customers with differentiated products and services. And quantifying tangible value drivers such as reduced inventory costs, or increased revenue through faster time to market can be simple enough, but what about the value drivers that are not as easy to measure? How can you quantify (and justify) the value of reduced risk, or your superior brand, or services such as technical support? It’s not as difficult as it may first appear. As we discussed in a webinar we did last year, “Quantifying Value: Working through the Math,” any seemingly “intangible” value driver can be measured; it is just a matter of how much time and effort are required to do so.
In this article, recognized author and speaker Stephan Liozu shares best practices on how to quantify intangible value. Learn how to determine the impact that you deliver to your customers’ bottom line, even for value drivers such as services or emotional benefits that are widely regarded as difficult to measure.
Stephan is co-author of Innovation in Pricing and A User’s Guide to Value Modeling, as well as numerous research papers and articles on innovation and value management. He is also a frequent guest lecturer at Toulouse School of Management, EM Lyon, University of Rochester, Wayne State University, Carlow University, University of Lugano where he teaches innovation, pricing and value management, leadership approaches and global business strategies.
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