My New Role as Chief Value Officer - Karen Chiang
Karen Chiang is a Chief Value Officer at Ibbaka. Connect with her on LinkedIn.
I am so pleased to announce my new role as Chief Value Officer at Ibbaka. Recognizing and creating this critical role at Ibbaka emphasizes the vision we have for our company. It also reinforces how Ibbaka places value at the core of what we do and how we instantiate value for our customers. Customer value management is more than a business strategy - it is part of the identity and mindset of the business.
The Value Cycle puts Value at the Core to Optimize Customer Value across the Customer Journey
The framework Ibbaka has created for understanding value is the value cycle. We use the value cycle framework to promote the value at the core.
Value Creation - Value should always be based on our customers’ perspective. People and businesses receive value in different ways. In business, we often point to economic benefits. It can be argued that emotion drives action. In certain cases, firms are governed by the interests of the community. See a simple overview of value drivers.
Value Communication - This is how businesses communicate and articulate value. Your value proposition is an example of this. Different stakeholders will value different things. Communication should be catered to specific buyer types and value segments.
Value Delivery - This is how the value is delivered and how your customer recognizes and receives that value.
Value Documentation - This is how value is measured and documented. Having value recorded serves as a reference to make a case for your customers' continued investment.
Value Capture - When we do the above well, we have a greater chance of capturing value. And, when we apply the value cycle to our customer journeys we have an approach to ensure the health and integrity of the relationship to secure lifetime customer value.
A key concept of customer value management is that the value cycle needs to applied throughout the entire journey with a company meaning at all stages of interaction.
At the heart of the Value Cycle is Understand Value. Ibbaka does this across three dimensions: economic, community and emotional. Economic value is understand through the lens of Economic Value Estimation (EVE), an approach pioneered by Tom Nagle in his book The Strategy and Tactics of Pricing.
Ibbaka’s Three Pillars of Customer Value Management
To foster a thriving customer value management culture we believe that you need a solid tool to manage and track the performance of how you are doing throughout the value cycle. This is the job of the customer value management platform. You also want to make sure that your value models, packages, and pricing are designed so that you can continue to create, communicate, deliver, document, and capture fair value as you engage with your customers throughout time.
Benefits of Customer Value Management
Having a solid Customer Value Management culture can provide the following benefits.
Optimize Revenue Growth
Increase revenue by aligning pricing with customer-perceived value, improving deal sizes, and reducing discounting practices.Enhance Customer Retention and Expansion
Improve Net Revenue Retention (NRR) by reducing churn, increasing upsell and cross-sell opportunities, and consistently demonstrating quantifiable value throughout the customer lifecycle.Accelerate Sales Effectiveness
Boost win rates and shorten sales cycles by equipping sales teams with data-driven value stories, ROI calculators, and interactive tools.Streamline Value Communication
Improve marketing and sales effectiveness by creating consistent, quantifiable value propositions across all customer touchpoints.Optimize Pricing Strategies
Develop dynamic pricing models aligned with customer-perceived value, improving Average Contract Value (ACV) and overall profitability.Enhance Customer Success Outcomes
Enable customer success teams to document, track, and deliver personalized value insights, fostering stronger relationships and higher renewal rates.Improve Cross-Functional Alignment
Enhance organizational efficiency by creating a shared understanding of value across product, marketing, sales, and customer success teams.Accelerate Time-to-Value Realization
Increase customer satisfaction and reduce time-to-revenue by prioritizing quick-win value drivers during implementation and onboarding.Enhance Competitive Differentiation
Improve win rates against competitors by clearly articulating and quantifying unique value propositions, leveraging advanced AI-driven tools for innovative pricing strategies.Optimize Resource Allocation
Enhance profitability by aligning internal resources with high-value customer segments and use cases, while reducing Customer Acquisition Costs (CAC).
Dedicated to Improving CVM for our Customers
I’m excited that in my new role as CVO, I will continue to work with our team and customers to continually improve our value cycle scores. In doing so, let’s reap the benefits of customer value management and ensure growth and higher value for us all.
Join me in our next Peakspan Master Class: Measuring Value and its Impact on Customer Engagement Part 2 on Tuesday, December 17, 2024 at 9:00 AM PT / 12:00 PM ET where I will be discussing how value is the ongoing narrative for customer lifetime value.
