4. The Building Blocks of a Successful
Customer Value Proposition
• the essential question is, "How do these value elements
compare with those of the next best alternative?”
• There are three ways to develop successful value
proposition
– Points of parity are elements with essentially the same
performance or functionality as those of the next best
alternative.
– Points of difference are elements that make the supplier’s
offering either superior or inferior to the next best alternative.
– Points of contention are elements about which the supplier and
its customers disagree regarding how their performance or
functionality compares with those of the next best alternative.
7. Value proposition template and value
proposition statement
Ten-point value proposition
template
Corresponding
areasin Figure
Functional
Responsibility
Who is the intended customer? Market VP team with Board sponsor
What will the customer’s experience be of the offering and
the company, and what price will they pay?
Value experience VP team with Board sponsor
What offerings will we create to deliver the intended
experience to the intended customer? What purchase or
usage of offerings do we want from the intended customer?
Offerings VP team with Board sponsor
What benefits will the customer derive from the experience
and at what cost?
benefits VP team with Board sponsor
What competing alternatives do the customers have? How
are we different?
Alternatives and
differences
VP team with Board sponsor
How will we substantiate our ability to deliver the resulting
customer experience measurably and specifically?
Proofs VP team with Board sponsor
Over what time frame will the proposition be delivered to
the customer?
VP team with Board sponsor
How will the value proposition be communicated internally
and externally?
Marketing & sales
How will the value proposition be operationalized
throughout the business?
Operations & HR
How will we measure and monitor the effectiveness of the
proposition on our business?
Balanced scorecard and finance
8. An example: Values proposition
statement
• You are important to us and, through our partner-led
approach, we work with you to ensure planning and tax
compliance is fully integrated and operates effectively
within the context of your business, enabling you to
minimize risk, while delivering clarity and effectiveness in
your tax philosophy.
• Our account management approach ensures one single
partner has a comprehensive overview of the tax service
delivery. This provides you with a single point of contact,
allowing you to achieve rapid decision making, solve
problems and maximize efficiency.
• Our prices remain competitively aligned with the value we
deliver and are 10% less than the top global firms
17. Class exercise
Ten-point value proposition
template
Who is the intended customer?
What will the customer’s experience be of the offering and the company, and
what price will they pay?
What offerings will we create to deliver the intended experience to the
intended customer? What purchase or usage of offerings do we want from the
intended customer?
What benefits will the customer derive from the experience and at what cost?
What competing alternatives do the customers have? How are we different?
How will we substantiate our ability to deliver the resulting customer
experience measurably and specifically?
Over what time frame will the proposition be delivered to the customer?
How will the value proposition be communicated internally and externally?
How will the value proposition be operationalized throughout the business?
How will we measure and monitor the effectiveness of the proposition on our
business?