Delivering More Customer Value
Here are three ways businesses can deliver increased value to their customers:
- Charge lower prices
- Help customers reduce their other costs
- Provide more benefits
I think businesses need to focus on finding ways to provide customer value other than just reducing prices. When you provide a benefit bundle to add customer value you are providing a uniqueness setting your business apart and beyond the competition.
Here are some ways to offer more benefits to customers that can take your business to new levels:
- Offer customized products and services
- Offer more customer convenience
- Provide faster service
- Give customers more or better service
- Give customers extra training or coaching
- Provide an extraordinary guarantee that competitors can’t match
- Give useful tools (hardware or software) to customers
- Win, keep, and grow customers by rewarding them (membership programs)
Now you have some ideas on how you can beat the competition besides just lowing price.
Helping customers reduce their other costs is an additional way to increase customer value. Some approaches include arguments that your product is more reliable, lasts longer, or attracts higher prices in the second hand market. Some businesses will provide support to customers in the way of coaching and training on how to reduce costs when using their products.
Other approaches to helping customers reduce their costs might include techniques to improve business processes such as purchasing and ordering costs. In this regard, providing them with unique systems to accomplish these tasks is one approach that can be utilized.
Inventory always represents a challenge for both small and large businesses. Offering customers just-in-time supply capability is one way to deal with this issue. Another approach is utilization of consignment arrangements. Some companies offer outsourced inventory management that help to maintain lower levels of inventory investment.
Some businesses justify higher prices by helping their customers reduce their processing costs. Techniques might include more efficient ways to use their products which lowers processing costs. Application of lean six sigma methodologies can help improve yields, reduce waste, eliminate chances for accidents, and lower labor costs.