In a recent article published by The Economic Times, Nirmalya Kumar encourages B-to-B companies to embrace a new culture of communications when selling to prospective customers – the 3Vs – “valued customer, value proposition and value network.” While seen as a complement to the 4Ps that comprise the typical marketing mix (product, pricing, promotion and placement), the 3V-approach is more strategic in nature. Therefore, it is more likely to engage the CEO at a strategic level during a time when many CMOs are struggling to stay relevant and remain on the payroll (the average tenure of a CMO is 26.8 months according to BtoB Magazine). Realizing this philosophy of customer value management is also the only way to command a premium in the B-to-B space via demonstrating, in monetary terms, “that whatever is being offered to the [customer] has more value than the next best alternative.”

What does this mean to us? Perhaps something we already know, or at least should know – the difference between a good salesperson and a great one is the ability to communicate value effectively. How do you communicate value to your customers? Are you familiar with the eight types of value (credit to author Bill Stinnett), and more importantly, their denominations of benefits and risks?

• Economic – revenues, costs, ROA, ROE, ROI, etc.
• Temporal – speed, opportunity costs, cycle times, etc.
• Quality – shelf life, customer service, defect preventions, etc.
• Counsel – market intelligence, resource expertise, etc.
• Political – public images, internal and external promotions, etc.
• Relational – customer relationships, conflict resolutions, commitments, etc.
• Simplicity – convenience, stress reductions, less hassles, etc.
• Emotional – security, “warm fuzzies,” internal and external recognition, etc.

As professionals in the B-to-B arena, we must always think through the lens of our customers and the values they perceive to be very important. That means checking our egos at the door and acting as true consultants with their best interests at heart. It’s about them. Not us. The next time you are on the phone, in front of your customer, or preparing for either case, think – really think – about what you are saying or what you plan to say. What is the relationship between the benefits and risks in your value proposition? Your company may offer a superior product (quality value) at a better price (economic value), but at the expense of leaving the 10-year incumbent (simplicity risk). Is there a way to accentuate the positives and mitigate the negatives? After all, if true value is derived as benefits divided by risk (not price – price is part of economic risk), you want the numerator to increase at the expense of the denominator, not in tandem with it. Think about it.

I'd love to hear your thoughts.