How to create customer value
The value in one’s product or service must be defined and is almost always defined in the customers’ terms. It is a matter of perception. If the customer perceives that your product or service has value, that perception will result in a purchase. Customer value can also be derived from having used the product consistently with satisfactory results.
Customer value in its most basic form is simply the difference between the benefit received from a product and the cost associated with that product. It is worth noting that today’s consumers are much more educated and informed due to the power of the Internet. As such, they will tend to buy products that they feel are worth the cost required to obtain said product. Consumers usually know exactly what they want to buy and don’t waste time with the wrong products.
It is important to have something unique that is not available anywhere else. This will make your product be perceived as very profitable. Therefore, a higher price would be favorable. In their rush to communicate information about products and services, sales professionals often exaggerate and overlook customer needs. Consequently, the presented solution becomes inadequate and of little value to the customer.
Cutting the price drastically or changing the price too often will erode the value of your products. To maintain customer value, refrain from volatile price changes and embrace costs. Clearly demonstrating that the benefits of your products far outweigh the costs associated with the product will do wonders for winning over customers. Think of a time you bought a product that you found completely valuable and that solved a need you had. Strive to provide that same feeling of satisfaction to your customers and you will be rewarded for doing so.
As always, a satisfied customer is a happy customer and will be loyal.
