Customer Value Proposition for Business Markets based on: Anderson, James C. et al, 2006, Customer Value Propositions in Business Markets Market Driven Organization, November 2010 Marlène Käsermann Elisa Lanthaler Tina Lutz Pascal Nellen Institute of Marketing and Management Department of Management and Entrepreneurship University of Berne

Slide 2 1.The Main Idea 2.The Idea in Practice 3.Three Kinds of Value Propositions 4.Conclusion Content

Slide 3 Customers are pressured to control costs. For the supplier, there are two strategies to meet this need: The Main Idea Through price S: Lowers the price C: Saves money S: Loses profit Through CVP S: Crafts a compelling CVP C: Saves money S: Increases profit

The Idea in Practice 1/2 Understand the customers' businesses Research potential customers' enterprises and identify their unique requirements and needs Substantiate your value claims Explain how your offerings outmatch those of competitors on the criteria that matters the most to the customers → Show monetary worth → Demonstrate customer value in advance (based on value histories or on-site pilots) Slide 4

The Idea in Practice 2/2 Document value delivered Create written accounts of cost savings or added value to costumers (value histories) and conduct on-site pilots at prospective costumer location to gather first- hand data on performance Make customer value proposition a central business skill Improve and reward managers' ability to craft persuasive customer value propositions (Best practice examples: Do it through company guidelines or trainings) Slide 5

Three Kinds of Value Propositions Seite 6

Conclusion Customer value propositions, properly constructed and delivered, make a significant contribution to business strategy and performance. Slide 7