Above all, the key to quantifying the tangible elements of the value proposition is in-depth understanding of your customer business model. This will allow you to frame the value created in metrics that really matter to your customer.
Value Funnel Step 4: Value Capture
And now for the often the forgotten phase of the Value Funnel. Great Value Capture does need validation. The validation of messaging but also the various tangible and quantified elements of the value proposition. Value capturing is about identifying the price point where value is shared equitably between your customer and your company. This analytical validation needs to be supported by market research.
One of the reasons people tend to skip this phase is due to the outdated perception of cumbersome, expensive and lengthy market research studies.
The good news is that when using the Value Funnel approach, the required research becomes extremely focused on what truly needs to be validated. Combined with some innovative platforms that offer sophisticated but affordable pricing quantification research, this can be turned around in matter of weeks instead of months.
For example, PriceBeam combines human pricing expertise with digital technology to provide an unique, self-service platform for companies of all sizes that quickly, accurately, and affordably validate customers’ willingness to pay for your value proposition.
Whether you are in the B2C or B2B, this is an essential step if you want to drive margins by optimizing pricing to share value between you and the customer.
Frankly, considering the huge payoffs in plugging the capture leaks in the Value Funnel, there just is no excuse for not doing so. It’s like running the race without crossing the finish line.