The fundamental steps of how to generate value for the customer
Posted: Sat Jan 18, 2025 9:32 am
Hearing expressions like “delivering value to the customer”, “demonstrating the value of your solution” or “creating value for the customer” is increasingly common, isn’t it?
For this reason, the focus on how to create the famous “value” for the customer ends up colliding with methodologies that teach how to understand the true needs of the prospect . Going further, these techniques show the consumer how the product or service that your company sells can be valuable, since it is the solution to solve the turkey phone number resource pains that they have.
Thinking about this issue, Philip Kotler created an equation that uses 8 elements , which when added and subtracted from each other, provide the value that the customer uses to decide whether or not to buy your product or service.
Want to know how to generate value for your customers? Then keep reading and enjoy the content!
Philip Kotler Equation: How Does It Work?
Philip Kotler's equation for generating customer value is just one, but there are three ways to use it, and we'll look at each of them in this article.
But, before anything else, we need to understand what the elements of this equation are, shall we?
Equation to generate value for the customer
Every consumer, when examining a product or service offer, performs a kind of “mental calculation” , in which they add up all the value they perceive in the solution presented by your business and subtract all of its specific costs.
What is the result of this equation? What we call Value Delivered to the Customer , this is the element that we need to highlight in the sales process, did you know?
And what are the elements that make up the Total Cost to the Customer? These four:
Image value;
Staff value;
Value of services;
Product value.
The sum of the values subtracted from the costs gives rise to the Value Delivered to the Customer.
Let's understand these elements better?
For this reason, the focus on how to create the famous “value” for the customer ends up colliding with methodologies that teach how to understand the true needs of the prospect . Going further, these techniques show the consumer how the product or service that your company sells can be valuable, since it is the solution to solve the turkey phone number resource pains that they have.
Thinking about this issue, Philip Kotler created an equation that uses 8 elements , which when added and subtracted from each other, provide the value that the customer uses to decide whether or not to buy your product or service.
Want to know how to generate value for your customers? Then keep reading and enjoy the content!
Philip Kotler Equation: How Does It Work?
Philip Kotler's equation for generating customer value is just one, but there are three ways to use it, and we'll look at each of them in this article.
But, before anything else, we need to understand what the elements of this equation are, shall we?
Equation to generate value for the customer
Every consumer, when examining a product or service offer, performs a kind of “mental calculation” , in which they add up all the value they perceive in the solution presented by your business and subtract all of its specific costs.
What is the result of this equation? What we call Value Delivered to the Customer , this is the element that we need to highlight in the sales process, did you know?
And what are the elements that make up the Total Cost to the Customer? These four:
Image value;
Staff value;
Value of services;
Product value.
The sum of the values subtracted from the costs gives rise to the Value Delivered to the Customer.
Let's understand these elements better?