A Quick Tool for Value Analysis


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Customer Value is the ultimate metric for your business to track and is the best leading indicator for future market share. Defining value can be difficult but a straightforward definition and the one I like to use is simply what is your product or service worth.  Value is what wins in the marketplace and is what should at the forefront of your sales and marketing efforts.

Your Value Proposition should be well defined and understood throughout your organization. Many of us understand this but we find it difficult to measure. A simple tool that I have come across is The Shape of ValueTM developed by John Mariotti and described in the book, The Shape Shifters: Continuous Change for Competitive Advantage. He believes that if we can accept value defined by these five attributes, we can measure and create a clear understanding of value within our organizations. The five attributes are:

  1. Quality
  2. Service
  3. Speed
  4. Cost
  5. Innovationclip_image001

We can use these five indicators graduated on a 10 point scale and depicted in a 5 point radar chart. His example becomes very clear and simple. The shape of the diagram actually points towards the primary value component.

I created this diagram in about 30 seconds and look at what it tells you. I am equal or above in every category to my competitor (I could add as many competitors as I had data) except for service. If this particular customer places a minimal value on service, then I am in a superior position. If he does value service as the most critical component, I may have to provide guarantees or make other provisions to shore up this area.

What I like about this diagram is that since the complexity is minimized it can readily be used by everyone in the organization. You could even use it to provide won/loss analysis. You could even use it during the sales process to determine your competitive or non-competitive position. It looks very much like a SWOT analysis but it is much quicker and more graphically displayed.

As you developed and understand your Value Proposition, you may replace these five attributes with five of your Customer/Market Critical to Quality components. If this becomes automated, you may even want to weight the individual CTQ’s as needed. But the secret to this tool is keep it simple.

If your sales team understood and updated this diagram during the sales process would it give your organization an advantage?

Republished with author's permission from original post.

Joseph Dager
Business901 is a firm specializing in bringing the continuous improvement process to the sales and marketing arena. He has authored the books the Lean Marketing House, Marketing with A3 and Marketing with PDCA. The Business901 Blog and Podcast includes many leading edge thinkers and has been featured numerous times for its contributions to the Bloomberg's Business Week Exchange.


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