Chris Whyatt explains how Value Realisation Reviews are a systematic approach to ensuring customer value is realised and acknowledged.
“Delivering Value is fundamental to keeping and growing business – but we rarely ask if that is happening”.
Value is a word thrown liberally into most sales conversations, but how often does sales check with the customer that the promised value is being realised?
I suspect that the answer is ‘rarely.’ So, here’s an idea.
Value Realisation Reviews (VRRs)
Simplistically, VRRs would be formal, diarised reviews between the seller (who promised the value) and the buyer (who expected the value) to establish one simple thing:
Did the buyer realise the value promised by the seller?
I hear you saying, ‘We do this already; they’re called service reviews/account reviews,’ and you’d be right to some extent.
Service reviews are about the service being delivered on an ongoing basis, NOT the consequential value, and involve different people.
Account reviews are usually generic and cover the complete relationship rather than a specific product/service, again with different people.
Value Realisation Roadmaps
Your proposal should include a draft Value Realisation Roadmap and proposed key milestones, which you should formalise with the buyer during negotiations.
This represents a formal commitment to the buyer that you (the seller) and your organisation are accountable for realising the value you promised in the short, medium, and long term.
VRR Agenda & Timing
The VRR agenda would be simple:
- Has the value you expected, as the buyer, been realised?
- If not, what needs to happen to address that?
- If it has, let’s discuss how we can build on that together.
Based on the Value Realisation Roadmap agreed in negotiations, I suggest that you diarise them for at least a year in advance.
What’s in this for the customer?
- The comfort that you’re demonstrating commitment and accountability.
- The comfort that you understand what you are doing, and any associated risks involved.
- A diarised forum to discuss current outcomes and any required actions.
What’s in this for the seller?
- A chance to demonstrate commitment and accountability to the customer.
- A chance to proactively check progress against the mutually agreed Value Realisation Roadmap.
- If the conversation is positive, you have another story to use elsewhere.
- You can rectify the situation if the conversation is negative or neutral.
- A chance to upsell if the opportunity arises, BUT this is not a sales call.
Unintended Consequences
- You elevate yourself above the competition.
- The customer recognises that additional value has been realised over and above what was promised, cementing your long-term relationship.
Finally, I’d like to acknowledge VMware’s influence, as the final stage of their Value Selling sales process was Value Realisation, although I’ve avoided looking at it while writing this. Thanks Michael Fox.
Chris Whyatt has worked, in various capacities, on Strategic Deals for over 30 years. Initially, it was in his own business, then in his corporate career, but from 2000, it was as an external coach to many of the then Top 10 Tech companies in the world, including Microsoft, SAP, VMware, NICE, Adobe, De La Rue, HP, Getronics, and many others. See his LinkedIn profile here: https://www.linkedin.com/in/chriswhyatt/