The value of a solution is created over time by both the supplier and the customer. By committing to an outcome-based contract, you take part of your customer’s risk, although the outcome does not only depend on your team, but is also determined by your customer. In order to reduce the recurring risk over time, you’d better check the so-called ‘value in use’ on regular occasions.
Measuring the ‘value in use’ mitigates risks
The term ‘value in use’ refers to the value over time, when a solution is ‘in use’ at the customer. Measuring the ‘value in use’ is key to understanding what value the solution is adding, as it is key to detecting new opportunities to offer more value in the future. It is the main parameter to pre-indicate future (recurring) solutions business.
Research topic at Freie Universität Berlin
Katharina Prohl from the Marketing Department at the Freie Universität Berlin is researching ‘value in use’ in solutions businesses, together with professor Michael Kleinaltenkamp, who will be one of the keynotes at the ISM4point0 summit in Berlin in October 18 and 19, 2018.
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