The customer value approach focuses on how people choose among competing suppliers, customer attraction and retention, and market-share gains.
Answering three customer value questions is important in order to determine a company’s customer value proposition:
• What are the key buying factors that customers’ value when they choose among a business and its toughest competitors?
• How do customers rate a company’s performance versus its competitors’ performance on each key buying factor?
•What is the percentage importance of each of these components of customer value?
By highlighting the best performer on each key buying factor, marketers obtain a market derived, empirical aggregate of each supplier’s customer value proposition. Often the view from the marketplace differs from the organization’s internally developed customer value proposition.