It’s probably the most commonly proposed response to price pressures and commoditisation: if we’re not prepared to cut our prices, we had better add more value for the customer. It’s a reasonable objective, but the sad truth is that most so-called “value-added” strategies simply add cost and complexity without making the offering any more desirable to the customer. In fact, they often have the opposite effect.
It might be a good idea to start by defining exactly what we mean by value. For many product-focused organisations, it’s seen primarily in terms of adding incremental functionality without adding much or anything to the price quoted to the customer. But that’s not how the customer typically views it...Read More