0106

Problem

Describe the key elements of a customer value proposition. Next, explain how a compelling value proposition might include points of parity as well as points of difference.

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Step 1/2

Customer value proposition:

It has become extensively popular in the business markets. It captures the particular set of benefits that a supplier offers to advance the performance of the customer organizations.

The key elements of a customer value proposition are as follows:

• Price

• Time frame

• Intended customer

• Next best alternative

• Value experiences

• Value quantification

Step 2/2

Points of parity, the value elements with neutral performance characteristics as the next best alternative. Points of difference, the value elements that offers suppliers either superior or inferior to the next best alternative.

The compelling value proposition might include ‘Points of parity’ and ‘Points of difference’ as on the following reasons:

• The Emphasis on the points of parity involves increased manufacturing and service efficiency as customers find it more appealing

• The Key buying and influential characteristics may not be considered in terms of the improvement, if the prices are raised

• The point of difference reflects the growth of marketing and profits of the company

• It involves as the superior or inferior results are a part of the value proposition