Value-added performance contract - A business mode of sharing from consumer's added value

Abstract

The global competition and demanding customers require organizations to look more outward toward customers, as indicated by the many calls for organizations to compete on superior customer value delivery. Value-added performance contract (VaPC) is a business mode which is popular in telecom services sector in many developed countries, like Japan and USA. Under the VaPC, telecom service providers created added value for the telecom operators, and then shared a certain percent from the added value of the telecom operators in certain percentage that is agreed and stipulated in the contract. By adopting such mode, the value-added service provider companies provide a whole package of integrated value-added services for the clients, and then share the added profits with the clients according to the contract. For clients, there investment and risks are largely reduced while the value-added service provider companies could easily develop a niche market and enjoy high profit margins. This article presents frameworks for thinking about customer value, customer value learning, and the related skills that managers will need to create and implement superior customer value strategies. © 2013 Springer-Verlag.