Companies have much to gain by conducting the kind of customer-focused analysis I’ve laid out. Map the stages of your customer’s CVC to discover where you create value, where you charge for it, and where you sometimes erode it. Then ask yourself three questions: (1) Can you deliver more value in the value-creating activities without charging more? (2) Can you afford to capture less in the value-charging activities, everything else being equal? (3) Can you reduce eroded customer value without diminishing what you’re offering or capturing?
