Buyer utility map

Definition

The buyer utility map is a tool that helps businesses understand how their products and services create value for customers by outlining the different dimensions of buyer utility. It identifies six stages of buyer experience and the various levers that can enhance utility at each stage. This map is crucial for organizations looking to innovate and differentiate themselves in the market by providing unique value to consumers.

5 Must Know Facts For Your Next Test

1. The buyer utility map includes six stages: purchase, delivery, use, supplements, maintenance, and disposal, helping businesses pinpoint where they can create more value.
2. By analyzing these stages, companies can identify pain points and areas for improvement, leading to enhanced customer satisfaction and loyalty.
3. The map highlights various levers of utility such as productivity, simplicity, convenience, risk reduction, enjoyment, and environmental impact.
4. Using the buyer utility map encourages businesses to think outside traditional boundaries and explore innovative solutions that resonate with consumers.
5. This tool is instrumental in formulating blue ocean strategies by helping firms discover uncontested market spaces and create new demand.

Review Questions

• How does the buyer utility map help organizations identify opportunities for value innovation?
  • The buyer utility map helps organizations pinpoint specific areas within the customer experience where value can be enhanced. By breaking down the customer journey into six stages and analyzing potential levers of utility at each stage, businesses can uncover pain points and unmet needs. This understanding allows companies to tailor their offerings and innovate effectively, leading to differentiation in the marketplace.
• What are the six stages of buyer experience outlined in the buyer utility map, and why are they significant?
  • The six stages of buyer experience in the buyer utility map are purchase, delivery, use, supplements, maintenance, and disposal. These stages are significant because they provide a comprehensive view of the customer’s interaction with a product or service. Understanding these stages allows companies to identify where they can enhance utility and improve customer satisfaction at every touchpoint in the buyer journey.
• Evaluate how the buyer utility map supports the development of blue ocean strategies for businesses seeking to differentiate themselves in competitive markets.
  • The buyer utility map is essential for developing blue ocean strategies because it encourages businesses to explore new value propositions that are not currently being addressed in the market. By identifying unique ways to enhance buyer utility across different stages of experience, companies can create offerings that stand out from competitors. This approach not only leads to innovation but also helps firms tap into new customer segments, thereby creating uncontested market spaces and generating new demand.

Related terms

Value Proposition: A statement that explains how a product or service solves a customer's problem or improves their situation, highlighting the unique benefits it offers.

Customer Journey: The complete experience a customer has with a brand or product, encompassing all interactions from initial awareness to post-purchase evaluation.

Innovation: The process of creating new ideas, products, or services that bring significant improvements or solve existing problems in novel ways.