In a recent Customer Value Community (CVC) Sandbox event, we brought together our members to discuss topics around designing and maintaining a value framework, featuring Topher Mitchell, Principal, Value Experience at Qualtrics, and Sansriti Saxena, Manager, Value and Solutions Engineering at Ecosystems. During the event, they discussed topics like:
- What are the key components of a value framework?
- What functions should be involved in the creation of a value framework, and what are their roles?
- What factors should influence your value framework?
- When and how should you sensitize value content by industry?
We compiled our members’ insights into 5 top tips for designing and maintaining a value framework. Keep reading to learn more.
What is a Value Framework?
Before diving into the top tips, we need to first define what a value framework is. A value framework is a structured and repeatable model based on a common definition of value within your organization. A well-developed value framework can help you better demonstrate your value to your customers based on metrics that are important to them, such as productivity, cost, time saved, etc. Learn more about Ecosystems Value Validation Framework™ in our ebook.
Now that we understand our basics, let's get into the tips.
1. Value Maturity Assessment
Before creating your value framework, take Ecosystems Value Maturing Assessment, derived from our Value Blueprint, which is founded on over two decades of empirical research on buyer/seller behavior and world-class value programs. The Value Maturity Assessment will help you determine where your organization is at in your value journey and provide actionable next steps for increasing your value maturity and creating a value framework.
2. Collaborate Live with the Customer
When it comes to creating a value framework, collaboration is a critical component of the creation process, as it will allow for new perspectives to come into the conversation and include viewpoints we may not have thought of on our own. Remember, we are not the sole experts, and getting outside opinions is valuable. However, don’t get so caught up in receiving further feedback on your value framework that you forget about the end goal in the process. Involving too many people could lead to too much influence and actually hurt your value framework in the process. Instead, strive for a happy medium and remember you cannot make everyone happy.
3. Avoid Over-iterating
In our goal to make the most accurate value framework possible, it can be easy to get caught up in iterations and changes to make adjustments/improvements. However, too much iteration could cause you to lose sight of the intended purpose of the value framework, which is to create a standard and make it repeatable. If we are constantly iterating, we will lose repeatability and cause frustration among both stakeholders and internal teams. The need for frequent edits could also indicate your value framework is too granular and should be adjusted.
For an effective value framework, adjustments and edits should instead focus on the logistics and tactics your team uses to implement the framework itself as you learn from trial and error.
4. Sensitize/Customize What’s Important
When it comes to sensitizing/customizing information within the business case, first consider your unique situation. Often, you may find that the value drivers themselves may not necessarily need to be changed unless you are going between the public and private sector, but instead you should be customizing the unique benefit of the value driver for your customers and their unique needs.
Deal size and customer experience can also be a factor when determining what sensitization you may want to employ. There is no hard and fast rule on when you should or should not sensitize information within your value framework. Use your best judgment.
5. Stress Test
Once you believe you have a robust value framework to start with, you need to stress test with your customers. At the end of the day, your customers are who the value framework should benefit. Take your framework to them and ask them to provide feedback on what’s working and what isn’t. They will be your best test to determine if your value framework is hitting the mark.
Ecosystems Value Platform
Creating a value framework is a critical component of proving your value to your customers to increase both win rates and renewals, meaning having a robust value framework is essential. Ecosystems’ value platform utilizes our Value Validation Framework™ to align your customers on tactics, metrics, targets, and timelines. Our platform also provides you with a library of 5,000+ value drivers within our Collaborative Value Assessment so that you can iterate and collaborate on value with your customers right in our platform, allowing for tailored customization. Learn more here.
