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Customer Value Proposition Essay

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Customers are looking for ways to reduce their cost, and increase their utility towards products. Customers have complicated choices when deciding which product will increase their overall satisfaction, the main goal for suppliers is to convince customers that they have the desirable product quality at the right price. A good method to gain customers’ attention is the customer value proposition, it is defined as a business or marketing statement that describes why a customer should buy a product or use a service. This technique has attract managers’ attention around the world because of its effectiveness convincing and influencing customers. Some firms tried to apply this technique, but they fail obtaining results because they do not understand…show more content…
As stated in the article, “Customer managers, increasingly held accountable for reducing costs, don’t have the luxury of simple believing supplier’s assertions.” This statement explains the disbelief of clients with suppliers, and reinforce the belief that managers need to understand customer desirabilities and maximize the most desirable features. A great part of managers see CVP (customer value proposition) as just a marketing tool to promote the company without giving this tool the appropriate resources and time. by shadowing their thinking, managers undervalue the customer value proposition, and fail to attain the proportional advantages that this tool creates for a company. Correctly used, the customer value proposition creates advantageous opportunities to satisfy customers, which can secure a great part of the market. The article states, that by studying and understanding their customers behavior, firms can create valuable and intelligent offers, being more efficient with a limited amount of…show more content…
After studying and analyzing the competitors offerings, the company can go ahead and decide which differences will create more utility for customers, and what are the disadvantages of competitors’ offerings. Then, the company can maximize the advantages of the product’s value. However, using this approach has a downfall which is called “value presumption,” this make the managers believe that the product has the desire differences that customers want, yet the features are unimportant or worthless for
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