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What value do we deliver to the customer? 23

Which one of our customer’s problems are we helping

to solve? Which customer needs are we satisfying?

What bundles of products and services are we oΩering

to each Customer Segment?

A Value Proposition creates value for a Customer for instance, created a whole new industry around Customization
Segment through a distinct mix of elements cater- mobile telecommunication. On the other hand, Tailoring products and services to the specific
ing to that segment’s needs. Values may be quan- products such as ethical investment funds have needs of individual customers or Customer
titative (e.g. price, speed of service) or qualitative little to do with new technology. Segments creates value. In recent years, the
(e.g. design, customer experience). concepts of mass customization and customer
Elements from the following non-exhaustive list Performance co-creation have gained importance. This approach
can contribute to customer value creation. Improving product or service performance has allows for customized products and services,
traditionally been a common way to create value. while still taking advantage of economies of scale.
Newness The PC sector has traditionally relied on this factor
Some Value Propositions satisfy an entirely new set by bringing more powerful machines to market.
of needs that customers previously didn’t perceive But improved performance has its limits. In recent
because there was no similar oΩering. This is often, years, for example, faster PCs, more disk storage
but not always, technology related. Cell phones, space, and better graphics have failed to produce
corresponding growth in customer demand.

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