Customer value is mostly read or talked about in the business environment but more increasingly, it is becoming hard to find in practice, hence one of the major reasons for most business failures. According to Professor Gima, 70-90% of new product or service fail in the marketplace due to various misapprehensions of what the term really means to product or service owners aiming for successful innovations. Customer value shouldn’t be confused with a new innovative technology or product/service features, neither should adopting a technology-oriented perspective rather than a customer-perspective approach in innovation be misunderstood as a way a deliver unique customer value. As explained in the article shared below, the real “Customer Value is a solution/benefit (provided by your products and services) that removes the problems, challenges, difficulties, frustrations and impossibilities so that the customer can do a job he/she is trying to do to achieve the outcomes desired at an affordable cost.”
Published by Professor Kwaku Atuahene-Gima, founder and president, International Foundation for Africa Innovation (iFAI) and Professor of Marketing and Innovation at CEIBS, the following article clearly explains what customer value really is and how business executives can leverage on a new understanding of this concept to drive successful innovations and build sustainable global businesses.
A deep and renewed understanding of value creation in businesses is as equally important for leaders of established organisations as it is for new business owners, startup founders and aspiring entrepreneurs.
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