Value Engineering Research

What do decision-makers seek from tech vendors? How can B2B SaaS providers articulate strategic value?

Value Consulting for Enterprise Software Apps

By David H. Deans

As a sales and marketing leader in the B2B software space, understanding the profound impact of pre-sales and post-sales professional services, particularly Value Engineering, is crucial for driving growth and cultivating lasting customer relationships.

A vendor's Value Consulting services aren't just an optional add-on; they're a strategic imperative that empowers customers to maximize their return on investment and, in turn, fuels their success.

A commitment to Value Engineering practices, as supported by academic research, empowers vendors to deliver exceptional customer outcomes across three critical dimensions:

Strategic Services: Aligning Vision with Value Creation

Strategic Value Consulting services are about connecting technical capabilities directly to clients' core business objectives. This involves a deep dive into their operational landscape to identify how solutions can generate measurable financial and operational benefits for customers.

Why this matters: By providing services like value proposition mapping and business case analysis, we move beyond being a software provider to a true strategic business partner.

Research by McKinsey highlights that B2B companies mastering digital capabilities, which include strategic value alignment, can achieve a revenue compound annual growth rate (CAGR) five times greater than their peers and generate 8 percent more shareholder returns.

Furthermore, studies indicate that formalized value consulting teams can lead to a 13-point difference in reported effectiveness by enabling vendors to price solutions based on the true value they deliver, rather than just features, and unlocking greater revenue potential from enterprise customers.

Operational Services: Optimizing Efficiency for Tangible ROI

Operational Value Consulting focuses on enhancing our customers' day-to-day processes, ensuring software integrates seamlessly to drive efficiency, reduce costs, and mitigate risks. This often involves value-based requirements engineering, helping tailor solutions precisely to needs.

Why this matters: In a world where operational bottlenecks can severely impact profitability, the ability to demonstrate tangible efficiency gains is a powerful enterprise sales differentiator.

For example, manual data entry can consume over six hours per employee per week, with errors costing $50-$150 each, and poor data quality costing companies an average of $15 million annually. By leveraging expertise, vendors help customers overcome such challenges.

The adoption of custom software solutions, a key outcome of effective operational value engineering, is on the rise, with over 83 percent of companies utilizing it in 2023 to boost operational efficiency.

Moreover, the strategic application of automation, including Generative AI, can automate 60-70 percent of employee time on certain tasks, significantly cutting operational costs and increasing overall productivity, which directly translates to the solution's perceived and actual value.

Customer Success Services: Fostering Long-Term Partnerships

Effective relationship management through ongoing Value Engineering is about continuous engagement and proving the desired business outcome value. It ensures customers not only adopt vendor solutions but also become long-term advocates.

Why this matters: Customer retention is paramount in the B2B software industry, where the average retention rate for SaaS vendors is around 90 percent. Customer success professional services, particularly those focused on relationship management, play a vital role in nurturing these connections.

Loyal customers are 50 percent more likely to try new products and spend 31 percent more than new customers. By continuously demonstrating value and providing exceptional customer service (cited by 96 percent as a key factor for brand loyalty), vendors significantly increase the probability of selling to existing customers (60-70 percent likelihood).

Furthermore, robust customer relationship management (CRM) platforms, a facet of strong relationship management practices, can boost company revenue by up to 245 percent and improve customer experience, solidifying the vendor position as an indispensable partner.

Customized Research and Guidance: Reach out to learn more about how you and your organization can benefit from the development and delivery of B2B Saas Value Consulting customer services.

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