Bridging the theory to application gap in value‐based selling

TLDR

Suppliers face pressure to prove monetary value amid cost‑cutting and skepticism, yet literature on practical value‑based selling remains sparse while its importance grows. This study seeks to bridge the gap between theoretical customer‑value frameworks and implementation practices, contributing to value‑quantification knowledge for firms aiming to become value creators. Using two case studies, the authors map best practices for customer value quantification and analyze value‑based sales processes to identify activities that enable implementation and profit from customer value. Results indicate a customer‑focused sales process that creates, quantifies, and shares value, enabling both parties to maximize utility, and show that tangible proof of suppliers’ impact is essential for industrial and service sales. The findings are limited to industrial and service selling contexts.

Abstract

Purpose Increasing pressure to reduce costs and skepticism of promised value‐added are forcing suppliers to produce tangible proof of the monetary value they create for customers. The academic literature on the practical activities related to value‐based selling remains sparse. This paper aims to bridge the gap between the abundant theoretical customer value frameworks and implementation practices to create a practical foundation for value‐based sales activities in firms that aim to become value creators. Design/methodology/approach Based on two case studies, the authors map the best practices in customer value quantification from the point of view of industrial customers, and study value‐based sales processes to uncover the value‐based sales activities for implementing and profiting from customer value. Findings The results suggest a customer‐focused sales process that centers on creating value, quantifying the value created, and creating a situation where customer and supplier maximize their utility through value sharing. Research limitations/implications The generalizability of the findings is limited to the industrial and service selling context. Practical implications Successful industrial and service requires tangible proof and evidence of the value and utility of the suppliers' business impact on the customer's operation. The paper aims to contribute to the value quantification knowledge and practices. Originality/value The academic literature on the practical activities related to value‐based selling remains sparse, while the importance of the value quantification knowledge and value selling process is growing rapidly.