Starcher Group

Open Book
Keyboard
MacBook
Crocus
Blueberries
Light Bulb
Reed

No Customer Value Gap, No Business Model !

What are your Customer Value Gaps? They are the source of value in all business models and therefore critical to understand across all your relevant segments. How are they linked to your Business Model, Experiences, Solutions and Products?
Customer Value Gaps are the source of value for your business model. What is a Customer Value Gap? It is a gap between the desired and actual/latent customer experience where the customer is willing to pay to close the gap. This “payment” can be in the form of price premium, changing vendors or increased loyalty and preference.

Customer value gaps exist at 3 levels, Functional, Emotional and Social.

Functional “It works”

Emotional “It brings me satisfaction”

Social “I want to belong”

Many insights can be gleaned if customer value gaps are identified across multiple dimensions, for example:

  • Customer segments
  • Strategic Segments
  • Customer decision journey
  • Customer touch points

In general, we find that there is the most value at the social level, followed by emotional and functional levels. For example, in motorcycles, Harley Davidson is one of the few brands that can leverage the “I want to belong” customer value gap, in their case into significant sales of accessories where significant margins are found.

A simple example from a restaurant perspective, segmented into fine dining, excess capacity levels and friction (ease of getting to location, parking, &hellipWinking:

Restaurant Customer Value Gaps
Customer Value Gaps

What are your Customer Value Gaps? How are they linked to your Business Model, Experiences, Solutions and Products?