ABSTRACT
Value is, first of all, always defined by customers and their success metrics. Value is thus subjective, customer-specific, relative, and contextual. Customer insight is the first premise that guides the definition of value. Second, value is always created collaboratively with customers and must be recognized by customers if suppliers expect customers to pay for value. Collaboration is thus the second principle that guides the definition of value. Third, value is the sum of quantitative, financial, and qualitative, intangible benefits delivered to customers. Quantification of the business impact is thus the third principle that guides the definition of value. For customers, value is an expectation. Suppliers must convert their promises into credible, verifiable, and simple deliverables in order to provide customers a realistic assessment of their abilities to deliver the expected results. Customer value is a multifaceted concept; differentiation can thus occur along a number of dimensions.
