This blog post discusses the importance of value in customer engagement and introduces the Value Cycle. It explains how value creation, communication, delivery, documentation, and capture are essential for building strong customer relationships. The post also presents a simple scorecard for evaluating a company's performance in each area of the Value Cycle.

A pricing metric is the unit of consumption for which the buyer pays. An example of a pricing metric is dollars per litre for purchasing fuel. Choosing a pricing metric is one of the most important steps in designing value-based pricing.

Fashioning a business with value at the center requires a commitment to ongoing value creation for customer stakeholders. In depth understanding of how value is created for the customer is foundational to designing fair and effective value-based pricing. It also creates positive customer experiences across the customer lifecycle. Customer value management is an emerging business practice that manages value to customer (V2C) across the full customer journey.

Have you ever wanted to pause and take an outside-in view into your organization’s approach to pricing, positioning and value creation? At Ibbaka, we understand that assessing one’s market approach is not an easy undertaking. We want to enable both new and mature organizations to take a disciplined approach to assessing their pricing and go-to-market strategy. Which is why we have designed a The Ibbaka Self-Assessment Tool to get you started.

One of the key barriers to adopting value-based approaches, including value-based pricing is a lack of customer understanding. The best way to organize your research into customer value is a customer journey map. This tool is underutilized in pricing discovery. Here we show how to build a customer journey map that will inform your pricing.

Despite the benefits of value-based pricing, companies are still lagging on implementation and execution. Corporations are failing in value-based pricing and are therefore not maximizing their opportunities to transact. This is a topic that Laura Fay, TSIA VP & Managing Director, Offers Research and Advisory, and I will be exploring during TSIA Interact. On October 21st, we will be discussing why it is difficult for customers to identify and connect value metrics to pricing.

Coming back from maternity leave during a pandemic has reframed my understanding of the importance of emotional and community value drivers. At Ibbaka we have always included emotional value drivers in our analysis. Recently we have added community value drivers. We have recently been focussing on trust. As a mother with a child in daycare I have a real appreciation of the value of trust and its implications for pricing.

Research has found that emotional value drivers play an important role in B2B pricing. In our recent work Ibbaka has found that it can be just as important to consider community value drivers, the positive (or negative) impacts a product or service has on the wider community. Including community value in market segmentation, customer targeting and positioning gives important pricing insights.

What is value management? (And why you should care). A document from back in November 2012 that sets out the basic approach to value management, and how it integrates innovation, marketing, sales and of course pricing. A new version of this document is in development.