Let’s Get Specific About Value – Results, Outcomes and Impact
‘I wish they would be more specific.’ These are the unheard words of many B2B buyers, lost in the fog of Generalised B2B Speak and yearning for usable information that would help inform a looming purchasing decision. This article describes how to be precise in describing value using the terms ‘results’, ‘outcomes’ and ‘impact’, an approach we have found to work across Sales, Marketing and Product teams and to be well received by customers.
Product Growth (PLG) advocates prefer to let their software do the talking, and there is a great deal of merit in that. However, not all software lends itself to that approach. What’s more, even the effort of choosing to deploy software still needs to be balanced against the value it promises. Accordingly, we need to be able to describe the value our software delivers in terms our customers understand.
This leads us to the tangle of language used to describe value. The term value itself is fraught with difficulty.
‘“Value” is the most ambiguous word in business. It means something different to every person that says it, primarily based on where they’re positioned in an organization.‘ (Jeff Gothelf, ‘Defining value: the most ambiguous word in product development’ on Medium)
Moreover, in describing value we use the terms benefits, results, outcomes, and impact frequently – seldom with consistency or precision.
A Better Way – A Sequence
We’ve found the best way to think about value so that we can describe it clearly is to use a short, well-defined sequence. Ironically, because value is such a nebulous term, this sequence doesn’t make use of the ‘v’ word. It also eschews ‘benefits’, a favourite of B2B marketers.
No Benefits?
Benefits is a term that can be used in several ways. For our purposes, two of these are most relevant. The first is to translate the effect of product features. In this context, benefits lean towards being generic and vendor-centric.
The second usage comes from project management and describes benefits as part of a sequence in a value delivery system:
‘The components in a value delivery system create deliverables used to produce outcomes. An outcome is the end result or consequence of a process or a project. Focusing on outcomes, choices, and decisions emphasizes the long-range performance of the project. The outcomes create benefits, which are gains realized by the organization. Benefits, in turn, create value, which is something of worth, importance, or usefulness’. (Project Management Body of Knowledge – PMBOK – Guide)
While this sequence of deliverables (outputs), outcomes, benefits, and value makes perfect sense, it strikes me that it is one step longer than it needs to be. Accordingly, we use the terms results, outcomes and impact to form a clear, simple sequence.
Results, Outcomes and Impact
We’ve found that these three terms are the best way to describe the value we deliver to customers in terms they use and understand. The simplest way to define them and see how they work together is with an example, which comes from a deployment of educational technology designed to reduce teachers’ workloads.
Results (Deliverables )
‘What Happened?’
Results are outputs or deliverables. These include the software, supporting documentation, training, etc, all of which will be measured in order to determine progress in the short term. Using ‘ deliverables’ in parenthesis is usually enough to make the use of the term clear, or you could just refer to ‘deliverables’.
Example Results (Deliverables)
- The system was deployed on time and budget.
- The system was integrated with the school’s existing systems and curriculum
- 15 teachers were onboarded
One of the biggest stumbling blocks in talking about the value customers actually receive is the confusion between what is delivered by the offering versus what customers gain as a result of the offering. A dashboard actively used by the customer is still a deliverable; it is not an outcome.
Outcomes (Behavioural and Operation Changes)
‘What Changed – and Why Does it Matter?’
Outcomes describe behavioural or operational change and are tied to a specific deployment. My test for outcomes is to ask, ‘What changed, and why does it matter?’
Outcomes describe change, which is brutally hard to achieve, and primarily what the customer buys. Outcomes are also a key component of value propositions. Outcomes are powerful.
Outcomes are generally measurable – either in numeric or monetised from. However, in some cases, a narrative description of the change and why it is significant will be acceptable. We’ve found it helpful to think of building outcomes as a journey – starting with the story (narrative), adding measures (numeric), and finally, if possible, moving to monetised outcomes.
Example Outcomes (Numeric)
- Teachers spent 4 hours less per week on lesson preparation and assignment marking, freeing up hours for both teaching and personal activities.
- Lesson sharing increased by over 50%, which contributed to the savings above.
- Teachers spent 3 hours less per month on preparing for parent and other stakeholder meetings.
Impact (Broader, Long-Term Value)
‘What’s the Value of the Change Over Time?’
Impact describes the longer-term value of outcomes. Defining value can get extremely complex, so using impact to describe it whilst building on our outcomes is more straightforward.
Example Impacts
- Teacher retention rates increased by 15% due to reduced workload and stress levels and improved job satisfaction.
- Students grades increased by 20%, driven by higher student and parent engagement
- As a result, supply teacher and recruitment costs dropped by a similar percentage.
Conclusion
Clear definitions and working step by step in a sequence, as we’ve outlined, are helpful in producing clarity and, over time, more value for our business and our customers. it’s not the end of the story, however.
Clarity leads to value only with the development of a shared understanding across Sales, Marketing, Product teams and customers, who can then explore and develop value together. I know it sounds somewhat like a fairy tale ending, but it is achievable!