As sellers and leaders, we know we are supposed to create value–for our customers, our people, and each other. Too many of us, me included, tend to be very glib about the term, assuming everyone automatically understands what is meant by value creation.
I’ve come to realize, despite how much we talk about it, we really don’t understand what it means, often overcomplicating it.
Let me try to, briefly, recast value creation.
At least in selling, for ages we’ve talked about “value propositions.” These focus on the results created from the implementation of a solution. For example, if our proposed solution will help the customer reduce costs by $1M, we define our value proposition in those terms. Or if we help increase revenue by 10%, we might look at the customer’s revenue at $1B, stating that implementation of our solution will enable them to grow revenue to $1.1B.
Our value proposition is for we and our customers to understand. It’s core to helping the customer understand the results they might achieve in implementing a solution. And when the customer implements our solution, we sometimes use the words value delivery and value realization to express the value in the post purchase process.
But value creation is far more than our value proposition. It’s about the ability to create “value” through the entire customer experience. It’s their experience through the buying process–perhaps at our websites, through our content, or through our meetings with the customer in their buying process. It extends to their implementation of the solution and use of it.
In short, we need to be creating value in every interaction we have with the customer–digital, virtual, F2F.
But when we use the term value in those contexts, what are we talking about?
Most simply, it’s “did the person think the interaction was a good use of their time?”
We might think of things like:
- Did they learn something new, as a result of the time spent together?
- Did we help them work through issues they may have been struggling with ?
- Did we help them think differently about the issues they face?
- Did we demonstrate that we “heard” and have understood and internalized what they may be expressing?
- Perhaps restating the previous point, did we do more than empathizing, did we demonstrate that we care–about what they are trying to do, about how they feel about it? (Both organizationally and individually?)
These are all elements of value creation, and the simplest way to understand whether we have created value is if the individual felt the time they invested was a good use of their time.
The remarkable thing about this is when they find the time spent with us is the most important way they could have spent their time at the moment, they will choose to invest more time with us. Whether at our web site, consuming content, meeting virtually or F2F, if they believe that was the best use of their time, when we request more time, they will be very interested.
And when we don’t create value, when we focus on our own concerns, when we waste their time, they won’t invest any more time. They will choose to spend their time elsewhere or with others.
We can’t answer the question for the person we are engaging. We can’t answer whether it was a good use of their time, only they can. But we can be attentive to the clues/cues. Simple expressions like, “I didn’t realize that, That’s interesting, Thank you for helping me on this…..”
Our objectives must be that 100% of every interaction our customers and prospects have, with us and our organizations, us a good use of their time.
The same applies to leaders/managers. Too often, we focus on how well we are using our time. But in reality, our people are our customers. If we aren’t using their time well, if they don’t see the interaction as the best way for them to have spent that time, we are wasting effort and not developing their capabilities.
Finally, as teammates and colleagues, we improve our relationships and teamwork, when we think the same about our interactions with them.
Time is the one thing none of us can recover. The greatest value we create for anyone, and ourselves, is insuring that we are using that time well.
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