If you think back to 2007 when Apple first unveiled the iPhone, there was nothing else like it. The brilliance of the iPhone was that it combined a phone, a camera, a music streaming device, and an internet browser all into one. The iPhone was so advanced that it launched the smartphone revolution and set the industry benchmark. Steve Jobs once said, “it’s not the customer’s job to know what they want”. You cannot create value for your customers if you do not know your customers. Apple conducted research on their customers, understood their needs, invested in research and development, and eventually pieced together the iPhone puzzle. Apple’s ability to drive maximum value for their customers is the reason why they are so successful with the iPhone and their other products.
What is Customer Value?
Simply put, value is what the customer gains relative to the cost of doing business. It informs the customer’s perception of you, it is what makes you stand out from your competitors, and it sets the benchmark for future business with your customers.
Maximizing Quality of Product
Simply put, value is what the customer gains relative to the cost of doing business. It informs the customer’s perception of you, it is what makes you stand out from your competitors, and it sets the benchmark for future business with your customers.
01. Know your customers
Talk to your existing customers. Listen to their complaints and suggestions.
Conduct market research to better understand your business environment.
02. Invest in research and development
Improve product performance.
Adapt the product to the changing needs of the customers.
03. Benchmark against your competitors
Does your product stand out?
Consider margining with similar firms or acquiring smaller competitors.
Maximizing Quality of Service
Service is how you set the tone of the customer relationship. If you have a great product, service is how you execute it. Good service is how you manage conflict, build trust with your customers, deliver on your promises, and set the foundation for future business. Simply put, happy customers are loyal customers. Here are a few best practices to help you better serve your customers.
01. Time is money! The advantage of speed is evident from the very beginning of a business relationship.
A study by the Harvard Business Review found that companies that contacted leads within 1 hour were 7 times more likely to reach decision makers.
By responding quickly, we show the customers that we care and prioritize their business. Conversely, slow service will magnify the customer’s frustrations and cause you to lose business.
02. Meet your customers wherever they are.
In a 2015 B2B Buyers Survey report, it was revealed that over 50% of customer complaints were filed through social media.
If social media is the most prevalent way your customers are reaching out to you, then it might be a good idea to create a social media team to engage with your customers online.
Adding Value
One of the reasons customers are reluctant to pursue new business are “hassle factors”, the annoyingness of doing business. One of the biggest hassle factors is workforce retraining. When implementing a new system for the customer, one of the best ways to alleviate hassle factors associated with change is to provide training sessions. By smoothing out the transition period, we ensure minimal disruption to business operations. Keep in mind that hassle factors change depending on the industry your customer operates in which is why it is important to perform due diligence and understand your customers. By doing so, you can mitigate hassle factors and have them work in your favour by demonstrating that you have gone above and beyond to address all your customer’s concerns.
Businesses are driven by customers and it is the understanding of what our customers want that pushes us to be innovative and profitable. The customer value equation allows us to breakdown value composition into their individual segments which simplifies the process of creating a sales strategy. The most exciting part of this equation is its adaptability at all points of the customer journey. Before any sale is made, you can use this equation to help you identify new customers. During the sales process, you can use this equation to help deliver great service. And finally, you can use this equation to continue your record of value creation for your existing customers in order to further cement relationships. Whatever your product may be, always start with the customer and maximize value.
