“The final question needed to come to grips with business purpose and business mission is: “What is value to the customer?” It may be the most important question. Yet it is the one least often asked. One reason is that managers are quite sure that they know the answer. Value is what they, in their business, define as quality. But this is almost always the wrong definition. The customer never buys a product. By definition, the customer buys the satisfaction of a want. He buys value.”
Peter Drucker, Management: Tasks, Responsibilities, Practices, 1993
Value management is the discipline of providing value to customers while also ensuring that providing value results in profit. Essentially, this is a holistic approach that will result in alignment between product management, marketing, sales, pricing, and other business processes. The goal of value management would be to ascertain sustainability and profitable revenue growth.
Customer value management is vital to all organisations and the right implementation of this is quite possible. Today, companies have gradually begun to realise the significant costs that can be incurred by a customer and therefore, work to better understand, manage, measure, and also improve customer retention. As such five steps have been identified in customer management as shown in the diagram below.
As a beginner, what you have to understand, is that value management is used to motivate people and develop skills and innovation so that the overall performance of the organisation can be increased. It is also a method for maximising the value for money, which is the best combination of whole life cost and quality to meet the client’s requirements and objectives. The utilisation will help any user achieve actual value for their money in a few different ways;
Value management has been applied successfully in many different sectors that range from speciality chemicals and building materials to software and medical technology. It also can be used in both B2B and B2C cases. They can also be applied in;
Our MoV® Foundation Certification Examination in Value Management will help you learn the right principles, processes, and techniques that are required to make sure that organisations and individuals maximise the benefits that are available to them through projects, programmes, and diverse portfolios. You will be taught how to use the resources you possess efficiently. A highly valuable certification that will help boost your career in the industry.
So join Study 365 today and begin your learning towards a lucrative career. You can also contact us at firstname.lastname@example.org