The term value holds a different meaning for different types of customers. For some customers, the value may lie in the prices of the product. For others, the value may include the benefits derived from the service or product or its quality and worth. When the definition varies greatly, it becomes even more critical to understand the term “value” in the business context. Customer value is what the customer perceives worthy of purchase when it comes to products and services. In addition, you can measure the worth in comparison to competitive alternatives available in the current market. Today, organizations worldwide seek ways businesses can create value for customers and how they can deliver this value.
However, a challenge that companies face is that customer values can change according to trends and economic conditions. For example, if the state is experiencing an economic decline, the customers are more likely to consider competitive prices valuable. Or in another case, when the latest trends include green production, organic and cruelty-free products can increase value for the customers. When value holds such significance for customers during the purchase process, businesses must find ways to increase customer value. For example, suppose you are starting a business or already own one and are seeking ways to improve customer value. In that case, it begins with working on yourself. If you don’t possess the analytical abilities to monitor customer behavior and predict changing purchase patterns, your business can suffer severely.
Today, many entrepreneurs hesitantly make decisions by relying on competitor experiences which then results in huge losses. Therefore, it’s crucial to develop a sound understanding of business essentials to propel your business to new heights. Consider getting an online degree such as an online MBA no GMAT required to increase your knowledge about business administration. Such degrees provide you skills necessary to identify varying customer needs and grow your business accordingly.
Now, let’s discuss the most critical ways to create customer value:
- Provide smart discounts
Attracting customers who define value by the price of the product or services is a risky move. For starters, this segment in your target audience is generally ready to change brands as soon as they find something more valuable at a lower price. But providing exceptional, unique products or services at competitive prices can also attract customers who value quality. Hence, offering compelling discounts can help you target both segments and increase your sales while securing regular customers.
You must focus on applying smart discounts as having a sale on your products at all times can hurt your profits. Apart from that, if your only strategy is to increase value by giving discounts, then the customers are more likely to reject your market prices.
Therefore, focus on providing discounts on occasions that can help you gain momentum and higher sales and introduce your product to the benefit-conscious audience.
- Optimize service levels
Small businesses have the opportunity to differentiate themselves from the market leaders by providing a personal experience with high value. Therefore, as a business, you have the chance to disrupt the market by providing service levels according to the frequency or size of a customer’s purchase. For example, you can introduce different service levels of silver, gold, and platinum for people who conduct business with you often. As a result, they will enjoy the additional benefits while you can maintain customer loyalty and value in the market.
- Improve customer care
Your customer services are as important as your product in the market. The purchase process starts with the interaction between your customer care and ends with feedback or queries. The response time, assistance quality, and experience contribute to maintaining and increasing customer value.
For example, suppose you respond to customer queries quickly and inform them of product value and worth. In that case, you can gain the upper hand over your competitors. Customers are generally eager to conduct business with responsive customer care facilities. To improve this experience, you can improve the website design for better assistance or use AI and chatbots to answer basic inquiries.
- Free stuff always works
Value is not limited to your product quality. Many entrepreneurs believe that a customer’s journey satisfactorily ends with the brand after the purchase is made. However, that is not the case, as you have to engage your customers even after the purchase cycle. Customer engagement can be in many forms, from social media posting to free giveaways and contests.
You can hand out free samples to customers to give them a taste of your product and judge its quality before they move further down the purchase funnel. Including free stuff in the packaging can be a delightful surprise for the customers and help make the purchase experience more personal. Apart from that, you can also introduce new products and gather customer reviews by adding free trial samples of the product in your packaging.
Every business operates on creating value for customers in one way or another. As customers are the backbone of your business, any step you take to attract more audience, gain momentum, and increase customer value is worth every investment. However, ensure to take manageable actions and strive for profitability while providing customer value. Undeniably, businesses exist to generate profits, and to achieve them, offering value to customers is imperative.