“Companies succeed by consistently delivering greater value to their
customers than their competitors.”
Lee Williams
Growing sales through customer value
Session 3 -– Functional Benefits
AGENDA
1. RECAP
2. FUNCTIONAL BENEFITS
3. VALUE & STAKEHOLDER ALIGNEMENT
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SALES OPTIONS
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DIY
RECRUIT
PARTNER
SALES STRATEGY
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CUSTOMERS
COMPETITORS
CHANNELS
COMPETITIVE STRATEGY
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NICHE
DIFFERENTIATION
COST
EMOTIONAL BENEFITS
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FEELINGS & VALUES
BELONGING & ASSOCIATION
BRAND VALUE
START WITH WHY
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Source: https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?language=en
DIFFUSION OF INNOVATION & VALUE
Innovators
2.5%
Early Majority
34%
Late Majority
34%
Laggards
16%
Early Adopters
13.5%
Early market – Features & Benefits
Mainstream market – Benefits v Sacrifices
Emotion
Function
Cost
Skepticism
Risk
Minimum Viable Product (MVP)
Optimum Viable Product (OVP)
Adapted from Moore, S. (2014) Crossing the Chasm & Rogers, E.M. (2003) Diffusion of Innovations
THE CHASM
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Sacrifices
Benefits
Value Quotient
Value
Functional benefit + Emotional benefit
Monetary costs + Search & Time costs + Psychic costs
=
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Value can be…
• “low price”.
• For some customers the lowest price is the best value.
• “getting what I want from a product or service”.
• These customers define value in terms of the benefits they receive, rather
than the price they pay.
• “the quality I get for the price I pay”.
• These customers regard value as a trade off between the price they pay
and the quality they experience
• “all I get for all I sacrifice”.
• Value is found in the relationship between every benefit customers
experience in purchase, ownership, use, consumption and disposal of a
product or service, and the various sacrifices they make to enjoy those
benefits.
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FUNCTIONAL BENEFITS
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Core Benefit
Enabling Benefit
Augmenting Benefit
Value and the marketing mix
• Product marketing mix
• product
• price
• place
• promotion
• Services marketing mix
• product
• price
• place
• promotion
• process
• Participants (people)
• physical evidence
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Value from products
• Products that offer better solutions to problems create more
value for customers
• Dependant upon the customers perception!
• E.g. a Learning Management System
• Customer value hierarchy
• Core benefit
• Enabling benefit
• Augmented benefit
• Additional value is created for customers through
• Product innovation
• Additional benefits
• Product-service bundling
• Branding
• Product synergies
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BENEFIT/STAKEHOLDER ALIGNEMENT
BENEFIT
HR MANAGER
EMPLOYEE
OWNER
IT MANAGER
CORE
ENABLING
AUGMENTING
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KANO MODEL
Customer delight
Customer dissatisfaction
Level of achievement
LOW
HIGH
Linear qualities
(wanted attributes)
Basic qualities
(expected attributes)
Attractive qualities
(unexpected attributes)
Source: Kano 1995
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Value creation in services
What sets services apart from products….
• Intangible-dominant.
• Services cannot be seen, tasted, or sensed in other ways before
consumption.
• Inseparable.
• Unlike goods that can be manufactured in one time and location and
consumed at a later time in another location, services are produced at the
same time and place they are consumed.
• Heterogenous.
• Unlike goods that can be mechanically reproduced to exact specifications
and tolerances, services cannot.
• Perishable.
• Services cannot be held in inventory for sale at a later time.
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Dr Lee Williams
JOWSA Consulting Ltd
Woodgarth
Tallentire
Cockermouth
CA13 0NR
M: 07980 598746
E: lee@jowsa.com
www.jowsaconsulting.com