EVE – Economic Value Estimate is an effective tool for evaluating and comparing two solutions, helping to develop sales arguments based on selected financial terms and customer benefits that differentiate these solutions. Specifically, it provides the capability to compare the value delivered to customers from the same market segments and to consider the associated financial benefits. For sales and marketing, this approach is valuable for assessing the most effective financial sales arguments in various sales situations.
EVE is complementary to and distinct from Price Value Mapping (PVM). While both methods consider value, they have different objectives. PVM maps price as a comparison of value, whereas EVE helps decode sales arguments—particularly financial ones—to recommend a solution to a customer. It contrasts price with financial benefits. Both methods have their advantages and are worth utilizing in marketing and sales.
When comparing two solutions from the same company or two competitors, EVE addresses two groups of questions: one related to perceived value and the other to financial benefit:
As a method, EVE may appear very quantitative, but it is, in reality, quite subjective. Perception of value is dependent on the customer; some customers, even within the same segment, may have different needs and contribute differently to the two questions. The measurement of financial benefits will obviously depend on customer needs. As a result, the findings are clearly subjective.
EVE is often used to determine necessary enhancements between a solution and its successor. It can also be used to compare two existing solutions, whether from the same company or from different companies, to optimize positioning or adjust pricing. From these discussions, teams can refine their sales and marketing strategies or consider future enhancements to differentiate and gain a competitive advantage.
EVE is an effective tool for analyzing and discussing in depth the relative value provided by each of the two solutions under comparison, particularly by involving various teams from marketing and sales. This collaboration is a significant advantage, as it facilitates discussions across teams with insights into customer knowledge.
The simplicity of the EVE model also allows it to be utilized as part of focus groups, engaging customers in discussions about their perceived value of different solutions.
When evaluating financial benefits, there may be instances where some perceive the benefits as substantial, while others view them as low or even negative. This variance can arise from the specific and diverse needs of customers, even within the same segment. Understanding these challenges is valuable for identifying early which arguments may resonate with customers based on their needs.
When designing a new version of a solution, proposed enhanced features can be discussed regarding their impact and significance for different customer segments. Simulations against competitors can also be considered. Finally, by involving sales teams in the design of EVE or in discussions about its results, sales tactics can be reviewed and optimized.
EVE involves developing a waterfall model between two solutions, where features that bring additional value are proposed first, followed by those features that reduce perceived value. The quantification of these steps is estimated through the financial benefits. 
This approach is useful for comparing the financial impacts of various solutions and potentially developing appropriate sales arguments. However, it can also confuse customer perception of value—which is subjective—with financial benefits, which are additive, linear, and easier to quantify. As a result, EVE may lead to risky shortcuts and incorrect conclusions about the price customers may be willing to pay for certain features.
In practice, financial benefits can only be assessed based on the customer’s use of the proposed features and capabilities. It is quite possible for two customers from the same market segment to have very different needs, making the quantification of financial benefits potentially misleading when assessing the price a customer would be willing to pay.
Fortunately, once a price is set, a salesperson will know when to recommend one solution over another based on the customer’s intended use of the proposed features and capabilities. In short, EVE will help salespeople and marketers develop effective sales arguments targeted to each customer’s needs.
EVE can be easily implemented by selecting two solutions, A and B (either from the same company or from competitors, or current and targeted future offering). A team or multiple teams will discuss the following two questions for a specific customer segment:
In the next step, build a waterfall diagram that utilizes these results to display the features and financial impacts across the two solutions. Then, take time with the team to consolidate key learning points, financial benefits, factors influencing those benefits, customer perceived value, and their drivers. Develop sales arguments and strategies for using them effectively. Sales scenarios can be designed to account for various situations when engaging with customers.
EVE can be employed by marketing in preparation for a product launch or to prioritize feature development based on customer impact and the competitive environment. It can also be used regularly with sales teams to determine or review sales tactics, develop sales scenarios, and revisit positioning and strategies in response to market or competitive changes. EVE creates multiple opportunities to consider positioning and can be frequently used with sales teams to reassess sales scenarios.
For a full understanding of the EVE – Economic Value Evaluation approach, take the time to learn about the Price Value Map model, which effectively keeps value and price as two separate axes. EVE tends to confuse these axes, leading to the misconception that the difference between the perceived value of features can be measured by a price differential. EVE is excellent for focusing on the perceived value and financial benefits of two solutions while developing sales scenarios.
An excellent resource on EVE by Stephan Liozu can be found here:
Ten Golden Rules of EVE Models
https://publications.pricingsociety.com/ten-golden-rules-of-eve-models/
This resource includes many useful recommendations, two of which we would like to highlight:
EVE is a valuable tool as long as the objectives remain within its intended scope, facilitating useful discussions about key sales arguments in favor of one solution over another based on customer needs. When developing pricing strategies, it is important to recognize that financial benefits are not the sole determinants of customer decisions and are largely influenced by how customers intend to use the solution.
The Price Value Map (PVM) remains an essential resource for those evaluating pricing strategies, potentially leveraging EVE and market research tools to assess customer willingness to pay for specific features. EVE serves as a great tool for discussions among sales and marketing teams to understand the real benefits for their various customer segments and to foster sales engagement around new capabilities proposed in new solutions.
© marketingdecision.org
The following section may include tools, some free, some with a fee to support this site development. If you consider a tool should be presented in this section and is missing, please let us know at: contact@marketingdecision.org
Explore tools related to the topics covered in this section. For a wider selection, visit our webshop using the link below, or continue browsing our marketing mix pages for additional insights and solutions.
© 2025 MARKETING DECISION SOLUTIONS. All Rights Reserved.
