Demonstrating Value Delivered

Houston, we have a problem. In a recent ITSMA survey, we asked marketing leaders to rate, on a scale of 1 to 5, their companies’ effectiveness at measuring the value of the solutions they deliver to customers. None of the respondents indicated that their companies are “extremely effective” at measuring the value delivered; meanwhile, 46% of respondents indicated that their companies are “not at all effective” or “not effective.” And only 8% of those surveyed always include in their solutions proposals an explicit commitment to measure the value the solution delivers to the customer. (In contrast, 38% of the respondents never include such a commitment in their proposals.) All in all, the results clearly illustrate that providers are struggling to get their arms around what exactly customers are getting out of the solutions they purchase.

This inability to measure value delivered can make life very difficult for the marketers tasked with articulating the business benefits of implementing a company’s solutions—particularly when top management demands that marketing be more and more accountable with each passing day. It seems obvious to those of us in the industry that solutions do provide tremendous value, but without proof points to back up marketing promises, it is not surprising that customers have become a bit skeptical of providers’ claims.

First Steps

So what can providers do to start measuring value more effectively? Our survey revealed that only 21% of the respondents have in place a formal value measurement program for solutions; 67% measure only on an ad hoc basis, and the rest don’t measure at all. And ownership of these measurement programs and initiatives is frequently unclear. Responsibility is spread across the organization, falling anywhere from solutions marketing to pre-sales consulting, sales, customer service, operations, or nowhere at all.

Thus, the first step in measuring the value of delivered solutions is to stop treating the measurement program like a hot potato. Come to consensus around who owns the program and let that person or department spearhead your efforts. Next, get the customer involved. Find out what metrics your customers are using to measure the value of your solutions; chances are, they have a way to measure the ROI of their technology investments. The more customer insight you can glean, the better off you will be as you begin to put more formal measurement programs in place.

Finally, remember that you’re not measuring simply for measurement’s sake. The more clearly you can capture and articulate the value your solutions deliver to customers, the sharper your value propositions will be, the easier your PR, AR, and advertising will be, and the more likely you will be to attract new customers.

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ITSMA specializes in helping companies market and sell services and solutions more effectively. We work with the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. ITSMA annual program clients include business leaders such as AT&T, Cisco, Deloitte, EMC, Fujitsu, Hewlett-Packard, IBM, Microsoft, SAP, and Tata Consultancy Services, among others. Our comprehensive research, consulting, and training on topics including ITSMA Account-Based Marketing℠, Brand Positioning, and Solutions Development provide the insight and experience companies need to improve business results. ITSMA is based near Boston, and has offices in London and Tokyo. Learn more at www.itsma.com.