Reasons for Using Business Case Value Analysis
We should note that all four approaches listed in the preceding chart are used to estimate customer value in business-to-business markets. Over the years, however, business case value analysis has emerged as the clear favorite among a number of academics and consultants who specialize in B-to-B markets. The reasons for this are fairly simple. Of the four approaches, only business case value analysis:
- focuses directly on the bottom line measures of value to a business customer - things like cost reduction, revenue enhancements, and overall profit improvement for the business.
- helps develop a deep understanding of how a product or service fits into a customer's business.
- puts the supplier in a position to say something like "Yes, we do cost more. But we also provide you much more. And you know what? The more you get from us well outweighs the more we ask you to pay."
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