Creating Customer Value: Going Beyond the Surface to Build Meaningful Solutions

In today’s rapidly evolving business landscape, one thing remains constant: the need to create real value for your customers. Whether you’re operating in B2C or B2B, the core principles of value creation don’t change. What does change are the nuances of how that value is delivered and communicated.

Having spent almost three decades in the consumer packaged goods (CPG) industry—bridging both B2C and B2B contexts—I’ve found that creating value isn’t just about features or pricing. It’s about understanding the deeper needs you’re solving for and how they align across the entire value chain. This is true whether you’re selling directly to consumers or influencing a complex network of decision-makers in B2B scenarios.

Yet, a common misconception persists: that B2B buying is purely rational, driven by dollars and cents, while B2C purchases are emotional. In reality, B2B decisions can be just as layered and emotionally charged. Behind every purchasing decision is a person, or more accurately, a team of people, each with their own motivations, pressures, and needs. If you don’t dig deep enough to understand this context, you risk missing the mark entirely.

The Hierarchy of Needs: Not Just for Consumers

Most marketers are familiar with Maslow's hierarchy of needs on the consumer side, where individuals seek to fulfill basic needs before moving up to self-actualization or even higher: self-transcendence. But fewer recognize that a similar pyramid exists for B2B buyers. Bain’s Customer Value Pyramid for B2B illustrates this beautifully, showing that customers seek value across several layers:

• Functional Value: Cost reduction, revenue growth, or operational efficiency.

• Ease of Doing Business: Time savings, risk reduction, and simplification

  
  
  
  

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• Individual Impact: Reduced anxiety, increased personal reputation, or career advancement.

• Inspirational Value: Visionary alignment or a sense of purpose.
  

While the stakes and decision-making processes differ, the underlying needs are just as complex as in B2C. To create compelling value propositions, you must understand and solve for these needs at multiple levels, going beyond surface-level observations.

The Importance of Context: Digging Deeper for Meaningful Insights

In both B2C and B2B, true value creation hinges on your ability to understand the full context of the problem you’re solving. Often, what customers say they want isn’t actually what they need. Here are three examples from my experience that illustrate this point:

1. The Packaging Conundrum: Navigating Complex Customer Requirements

A sales leader demands a change to your product's packaging, citing a potential fee from a retail customer. At first glance, the directive seems straightforward—change the configuration or face penalties. But changing the package conflicts with what you know about end-consumer preferences and would require significant capital investment.

Digging deeper, you learn that the retailer’s issue isn’t with your package design per se but with its fit within their logistics system. It leads to inefficiencies, higher handling costs, and impacts their team’s performance metrics. By understanding the broader context and exploring alternatives, you find a solution that satisfies the retailer's logistical needs without compromising consumer preferences or incurring massive capital expenses.

Lesson Learned: Always ask, “What are they trying to solve for?” rather than assuming the stated problem is the real problem.

2. The Manufacturing Puzzle: Finding Cost Savings Through Deeper Observation

During a visit to a co-manufacturer, I watched our product being made and noticed several points where manual labor was required. When I asked the line manager why, he explained that it was necessary to meet a specific recipe specification.

By digging deeper, we discovered that a minor tweak to the recipe would maintain the product’s quality while eliminating the need for manual intervention. This simple change resulted in significant cost savings and increased efficiency.

Lesson Learned: Go beyond data analysis—observe the process in action to uncover hidden inefficiencies and opportunities.

3. The Commodities Trap: Avoiding Siloed Decision-Making

A key product line depends on several commodity inputs, each managed by different buyers focused solely on minimizing costs. Over time, minor adjustments—switching suppliers, altering ingredient ratios—were made to cut expenses. But soon, consumer complaints started rolling in about product performance.

Upon investigation, we realized that while each change was cost-effective on its own, the cumulative impact compromised the product’s quality. We were solving for individual cost savings rather than maintaining the product's holistic value proposition.

Lesson Learned: Ensure alignment across all functions by maintaining a holistic view of the value chain.

Creating a Clear Value Proposition: A Process That Works

To truly create value, you need a rigorous approach that goes beyond traditional market research or product development cycles. Here’s how:

1. Start with Deep Customer Empathy

   • Talk to the Customer: Go beyond surveys and focus groups. Have one-on-one conversations with decision-makers and end-users.

   • Observe the Customer: Watch how they use the product, navigate pain points, or even “hack” existing solutions to better fit their needs.

2. Contextual Inquiry: Understand the Whole Ecosystem

   • Consider the broader context in which your product or service is used, including supply chain dependencies, distribution challenges, and end-user behavior.

3. Identify Gatekeeper Needs

   • In B2B, purchase decisions are rarely made by a single individual. Understand the needs of all stakeholders, including procurement teams, influencers, and end-users.

4. Map the Hierarchy of Needs

   • Use tools like Bain’s Customer Value Pyramid to identify which needs you’re currently solving for—and where you might create even more value.

5. Iterate and Co-Create Solutions

   • Engage customers early and often. Co-create solutions that address their challenges while also aligning with your strategic goals.
     

Transcending Industry Boundaries: Principles Over Product Knowledge

The truth is, the principles of value creation apply universally. It’s not about knowing every detail of the industry—it’s about mastering the process of value discovery.

Regardless of the industry, it’s about asking the right questions, observing with curiosity, and connecting the dots between customer needs and your strategic capabilities. It’s about shifting from a mindset of “selling products” to one of “creating value.”

Whether you’re dealing with a consumer choosing a beverage or a procurement officer evaluating industrial solutions, the core challenge is the same: How can we better understand their needs to create value that sticks?

Conclusion: Creating Customer Value is a Universal Principle

Creating meaningful customer value isn’t just about delivering features, reducing costs, or even driving revenue growth. It’s about understanding the deeper needs behind purchasing decisions and delivering solutions that resonate at multiple levels.

By applying these principles, you’ll move beyond commoditization and price-based competition, building stronger customer relationships and achieving sustainable growth.