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Delivering high customer value

Consumers have varying degrees of loyalty to specific brands, stores, and companies. Loyalty has been defined as “a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential
to cause switching behavior.”

The value proposition consists of the whole cluster of benefits the company promises to deliver; it is more than  the core positioning of the offering. For example, Volvo’s core positioning has been “safety,” but the buyer is promised more than just a safe car; other benefits include good performance, design, and safety for the environment. 

The value proposition is thus a promise about the experience customers can expect from the company’s market offering and their relationship with the supplier. Whether the promise is kept depends on the company’s ability to manage its value delivery system. 

The value delivery system includes all the experiences the customer will have on 
the way to obtaining and using the offering. At the heart of a good value delivery system is a set of core business 
processes that help deliver distinctive consumer value.
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