The total value created by a company is the difference between its WTP and WTS. Strategies that lead to exceptional performance use three levers to produce differentiated value:
- Create customer delight to increase willingness to pay.
- Create improved work conditions to decrease employee Willingness to sell.
- Improve organizational productivity in ways that are difficult to imitate.
There are only two ways to create additional value: increase WTP or lower WTS. Every significant initiative must either enhance customer experience (raise WTP) or make it more attractive for vendors or employees to work with you (lower WTS).
