Value Framework

As an Enterprise SaaS company in a very crowded Marketing Automation and Data Platform space, we have to be extremely focused on account retention and expansion of our customer base. A core component to this goal is ensuring that we design products and service offerings in which our customers will find value in and also importantly, be willing to pay for to be able to achieve their desired business outcomes.

And hence, the concept of 'Value Selling' comes into sharp focus against this backdrop.  As enterprises make significant outlays on SaaS solutions, the pressure to demonstrate ROI intensifies. Adopting the latest technologies is no longer sufficient; businesses must ensure these technologies are aligned with strategic objectives and deliver measurable value. So from core Sales and Marketing efforts, the company then begins to instill this perception of 'Value' to customers. But how does this actually translate to post sales functions?

You know the unique value you offer as a company — but do your customers know it? Your customers may not be fully aware of the impact your solutions have on their business. This could happen because you lack a plan and/or do not regularly communicate that value. As a consequence, customers may have a distorted perception of what you are able to offer them. This can lead to low customer satisfaction and higher possibility of customer churn.

The solution? Prioritize and accurately measure value realization among your customers. 

And this is where the 'CS DNA Value Framework' comes in.

Every customer would typically go through various stages as we engage them across the contract term. From the early days of post contract signing and sales hand off to the delivery team, they would begin to implement our software, get trained and supported in daily operational use of our solutions. Over time, they begin to get more self sufficient and we will consult and advocate for increased adoption, doing regular reviews to ensure ongoing execution and performance are aligned with the customers' expected business outcomes. If achieved, this will ensure greater success in securing renewals and/or possible expansion opportunities.

These various stages can be categorically broken up into the 5 stages in the below diagram. 

How are Value Creation and Value Realization Different?

• Value creation, be it in sales or post-sales context, refers to the process of identifying customer needs, developing or showcasing product or services in a way which meet those needs, and creating a unique value proposition for the client. Creating value for your customer is the fundamental groundwork for the entire customer value journey, which must begin from initial sales engagement phases and followed through with by the delivery team in post-sales phase.

• Value realization is how you deliver that value and very importantly, ensure that customers understand this value that you have created and that it accrues to their desired business goals. 

In other words, value realization is how you close the loop on the customer value you pitched/created in order to build long-lasting trusted partnership with your customers. 

Why You Need Both Value Creation and Value Realization

Ultimately, value creation and value realization go hand-in-hand. Without value creation, there can be no value realization. However, without value realization, your customers may not understand or appreciate the value that you've created. If you have done value creation right, you have likely invested time and effort into understanding your customer, honing your offerings, and crafting a solid customer value proposition. Value realization further builds upon that work. When customers can realize the full value of their investment, they are more likely to be satisfied with the product or service, renew their contracts, and recommend the company to others. This can lead to increased customer loyalty, reduced churn, and improved revenue and profitability.

This is why it is so important to incorporate both value creation and value realization into an end-to-end customer value-driven strategy.