Challenges in Executing a Value-Based Strategy

May 3, 2009

Posted by Ed Arnold

Posted in Increase B2B Sales, Quantify Customer Value, Why LeveragePoint?


There’s much attention nowadays around the importance of an organization adopting a value-based strategy, especially given the current economic climate.  Pricing guru Tom Nagle and I recently spoke to a group of managers interested in this topic — 80% of them indicated that their organizations were attempting to implement such a strategy.

Not surprisingly, these managers shared their specific challenges, such as:

  • 50% said they lacked effective models and data
  • 42% said their value proposition was not well understood either externally or internally
  • 40% said their sales force reject their sales models or materials
  • 15% said their value models didn’t address their customers’ real issues

It is clear that the many organizations struggle with the capabilities to create viable value models and to leverage them effectively to communicate value through their sales channels to their customers.  Traditional approaches of training, “one-off” spreadsheet tools, and pricing specialists have definite limitations.

This task is simply too large for either one or a small group of individuals to take on for themselves.  We’ve found that good value model building is both a collaborative and iterative process.  To facilitate this process requires tools that are easy to use, have a strong visual interface that supports “what-if”, and are easy to share in a secure, online environment.  One that we are working on is described here LeveragePoint for Value Management.

Ed Arnold, VP of Products


Tom Nagle, Member of the LeveragePoint Advisory Board and Partner at Monitor Group

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