B2B Elements of value

B2B Elements of value

1. Differences between B2B consumer decisions are not clear.

   • Sellers have to optimize prices, meet specifications, comply with regulations etc.
   • Companies must pay attention to intern and extern customers

2. Elements of value are asocieted with Maslow pyramid

   • Maslow argued that human actions are motivated by an innate desire to fulfill needs ranging from the very basic (security, warmth, food, and rest) to the complex (self-esteem and altruism).
     • (3) Elements within the third level make it esier to do business. They include things that improve relationships.
     • (1) At the base of the pyramid are the table stakes: meeting specifications at an acceptable price in compliance with regulations while abiding by ethical standards.
     • (2) Above the table stakes are functional elements, which address companies’ economic or product performance needs, such as cost reduction and scalability
     • (4) Elements at the next level provide additional types of subjective value. In career and personal likereduce anxiety, fun, growth and development etc.
     • (5) The last level includes the most subjetve elements of value like vision, hope and i think the most impotant is social responsablility.
   • The mostobjetive kinds of value are found at the base, and the last level includes the more subjetive ones.

3. As B2B offerings become ever more commoditized, the subjective is increasingly important.

   • Understanding the full range of rational and emotional factors in business purchases can help firms avoid the commodity trap.

4. If companies use modern techniques and statistical analysis to quantify all the elements. They can know what customers value and how to invest.

   • Companies can also add elements to expand their value proposition.
   • Performance on the elements and customer loyalty have a 1:1 statistical relationship-.
   • How John deer invested in improvements related to productivity. Like the App for farmers
     • J.D has excelled at expertise and the configurability of its products, as well as at providing reputational assurance in the quality of their prducts.

5. Customers’ likelihood of recommending an IT infrastructure company, rises in tandem with the number of high-value elements provided.

   • It is translated like More value, greater loyalty.
   • Any B2B company can use an elements analysis to ex- amine and improve its value proposition

6. Which elements matter most?

   • In surveys, customers stated that cost reduction was the element of value most important to them.
   • Statistical analysis revealed that product quality, vendor expertise, and responsiveness drove customer loyalty far more
   • When all the elements beyond table stakes were ranked on their impact on loyalty, cost reduction came in 27th.

7. To identify the elements your customers prize most and deter- mine how best to enhance your offerings, follow these five steps

   • 1.- Benchmarking company's value p. vs competitors'
   • 2.-Talk with customers to understand the experience. Explore their needs
   • 3.- Imagine ways to increase value for customers. Determine wich elements to focus on first
   • Apply the acid test. Reevaluate how the stack up vs competitors'
   • 4.- Refine, test and learn. assess the best ideas.