We all do business in a connected environment that has made providing value to customers even more important than it was before. Almost every experience that customers have is shared via social media and that can either work for or against the interests of a business, depending on the kind of experience the customer had. Now, providing value is more like a precursor to delivering an excellent customer experience because when you begin to understand what actually holds value to your target customers, rather than what you think holds value, you can automatically take steps to make sure that the business is able to cater to those needs, tailoring excellent customer experience for almost everyone. To know whether you are already on top of everything that experts advise today to provide value to the consumers, go through the following.
Understanding the Definition of “True Value”
The definition of true customer value in business is dynamic in nature, as it changes radically, depending on who your customers and target audience in general are. By communicating with them and by observing the actions they take or have taken in the past, you will be able to understand what the customer is in need of and how your business can fulfill that need for them.
To explain the dynamic nature of customer value, let’s take the example of Apple’s sales strategy in India. All their products are sold at a much more premium price in the subcontinent than they are sold in the US, due to heavy import duties. Yet, all Apple devices in general and iPhones, in particular, are extremely popular in India as a status symbol.
While the high pricing seems counterintuitive at first, it begins to make a lot of sense once you realize how the tech giant managed to tap into the local mindset and provide value to a very specific group of customers in the region who are seeking prestige value over a bargain.
Delivering that True Value: It Is Easier Said than Done
Once you start understanding the needs and delivering products/services catering to those specific needs, you start delivering true value to your customers. This is easier said than done, of course, which is why design thinking programs have been developed to make entrepreneurs and high-level executives more aware of the different methods and processes involved in designing and shaping a customer-centric business that can provide unmatched customer value. It allows business leaders to not just stay ahead of the competition, but also find new innovative markets in their respective fields as well.
Identification of the Right Customer Base
It is quite possible that the customer base you have right now is simply not right for your business, which can be the result of a lot of factors. The specific market could already be saturated, or the customer base might be too demanding to deliver value to them without sacrificing profitability.
Another possible reason could be the fact that the customer base itself is too small. However, the most common mistake is misidentification of the target audience. A business can only deliver true value to its customers when their products, services, and business model adequately suit the needs of their customer base, and vice versa.
In order for any business to facilitate growth, it must gain more customers, but that expansion can only be sustainable if the foundations of the growth are built by creating satisfied customers. Therefore, learning and adopting dynamic, customer-centric business models are essential steps to building and growing a successful organization in the modern world that we live in today.