Creating an Effective Customer Value Proposition Process
Talola, Jalmari (2016)
Metropolia Ammattikorkeakoulu
2016
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2016052910558
https://urn.fi/URN:NBN:fi:amk-2016052910558
Tiivistelmä
The objective of the present study was to establish a Customer Value Proposition building process for the case company and to focus the company’s sales and marketing operations through building a Customer Value Proposition to the company’s most potential customers in selected new markets using the established concept. The case company operates in the IT industry and its market territory is limited to Finland. After numerous rather steady years, the owners have set very high targets for growth and profitability for the company. These break-through objectives require not only more efficient operations in marketing and sales but also new operation models and processes.
The study was performed using an action research method and its four-step process to first define the context and purpose. This was followed by a building phase where actions were planned, performed and evaluated. Through this process, the study was launched by identifying the business challenge and objective for the study. The conceptual framework was created based on the results of wide-range research completed during the past few years, added with leading Geographic Information System -market specific knowledge of customer value propositions.
The case company operates in several different industries. This sets high challenges for the company’s sales operations to identify customer needs and demonstrate the business value for the customers. Therefore, a careful selection of the target customer is very important for successful business. The current state analysis phase was conducted to analyse the case company, its current use of customer value propositions and the selection of the target customer.
The conceptual framework was used to build a Customer Value Proposition for the selected target customer so that the value can be clearly communicated to its target audience. The built Customer Value Proposition communicates clear benefits in three areas; savings, organizational benefits and future benefits. These are then presented using information products that delivers the value.
The initial Customer Value Proposition was presented to the customer to gather feedback. Based on the feedback, the proposed Customer Value Proposition was adjusted and the final Customer Value Proposition was built. The Customer Value Proposition process is documented and can be used for other customers in the market accordingly.
The study was performed using an action research method and its four-step process to first define the context and purpose. This was followed by a building phase where actions were planned, performed and evaluated. Through this process, the study was launched by identifying the business challenge and objective for the study. The conceptual framework was created based on the results of wide-range research completed during the past few years, added with leading Geographic Information System -market specific knowledge of customer value propositions.
The case company operates in several different industries. This sets high challenges for the company’s sales operations to identify customer needs and demonstrate the business value for the customers. Therefore, a careful selection of the target customer is very important for successful business. The current state analysis phase was conducted to analyse the case company, its current use of customer value propositions and the selection of the target customer.
The conceptual framework was used to build a Customer Value Proposition for the selected target customer so that the value can be clearly communicated to its target audience. The built Customer Value Proposition communicates clear benefits in three areas; savings, organizational benefits and future benefits. These are then presented using information products that delivers the value.
The initial Customer Value Proposition was presented to the customer to gather feedback. Based on the feedback, the proposed Customer Value Proposition was adjusted and the final Customer Value Proposition was built. The Customer Value Proposition process is documented and can be used for other customers in the market accordingly.