Created by B2B International, the Net Value Score (NVS) is a metric that provides the market’s view on the perceived value offered by each company supplying a market.
The metric can be used for benchmarking (enabling users of the NVS to understand where they are relatively stronger and weaker on perceived value), and for pinpointing the cause behind a high or low perceived value score. The NVS ultimately assists users in determining how they can maintain or increase the level of value they are perceived to offer, with a view to driving growth and increasing market share.
Comparing Net Value Scores Across Different Vertical Markets
The example above illustrates how data plays out to show the perceived value of a number of companies in different vertical markets.
Companies should measure the perceived value they offer compared to their competitors, because benchmarking the NVS provides insights on where improvements might be required.
Typical outcomes from the NVS include the need to better communicate certain benefits to specific segments; the need to better differentiate benefits so that they more strongly stand apart from those of competitors; and the need to adjust pricing so that prices are more in tune with the benefits offered.
A company with a Net Value Score which is significantly higher than others with which it competes will be one which enjoys a rising market share.