Business success largely depends on customer perceived value.
As Jeff Bezos, the CEO of Amazon, said, “Focusing on the customer makes a company more resilient.” This focus means offering more value to your clients than your competitors. To create value, your team should work hard to understand the customer’s challenges and how to deliver the solution to their pain points.
As a company manager, you should look for opportunities to add value to your customer experiences. There are several ways in which you might provide value to your target audience, keep a competitive edge, and enhance conversion rates in your chosen market niche.
In this blog post, I will go through the 9 most important ways to provide value to your customers. But first, let’s talk about what customer value is and what advantages it offers.
- What is customer value?
- Key advantages of increasing customer value
- 9 tips and tricks for customer value creation
What is customer value?
The term “value” has many different meanings. Sometimes, it refers to any monetary unit, such as dollar value. In other cases, value means the benefits the person gets from a brand or a particular product.
In business, customer value is the difference between the total customer benefits and the total customer costs. It’s a perception of the worth of your product/service in terms of money spent as compared to other possible competitor solutions.
In short, creating customer value means offering a product/service with attractive benefits that outweigh its cost. Quality, popularity, accessibility, convenience, an abundance of features, and longevity are all examples of benefits. Increasing your benefits while keeping your price the same can increase the value of your product/service for your clients.
Key advantages of increasing customer value
Increasing customer value takes your company to a favorable position in market competition. This added value will increase the possibility of getting new customers and efficiently serving existing clients.
Generate loyal customers 💰
Customers are given the utmost significance in business. In fact, everything you do in business is to serve your clients. By offering value to them, your company builds a loyal customer base that will repeatedly purchase your product and use your service rather than switch to your competitors.
In the digital world, customers have higher expectations of businesses. They want interaction and to be treated with respect. And since a company gains 61% of its total profit from loyal customers, you must put effort into increasing the customer retention rate and proving to your clients that they are more than simply a number.
Gain more positive customer feedback ✅
Your company’s marketing team puts a ton of work into promoting your business. But do you know that your customers are doing the same thing?
By word of mouth, they recommend your product/service to their peers, friends, or relatives. And often, they leave reviews on Google Reviews, Amazon, G2, Capterra, and other websites, which is the engine that keeps your potential customers coming.
Create a strong brand image 🤗
Brand image is the customer perception of your brand and how they feel about it.
Every company seeks to develop a strong image since it aids in the fulfillment of their business objectives. With a strong brand image, your profits increase as more clients are drawn to the brand. It’s much simpler to launch new products under the same brand. Besides, having a strong brand image helps boost existing customers’ trust and aids in their retention.
A company with a bad reputation might struggle to operate and be unable to launch a new product/service under the same name.
Internal and external growth of your business 🤝
When your customer value increases, so do customer wants, which leads to product changes to meet those requirements, expansion to international markets, and so forth. To maximize value, you must expand both vertically and horizontally.
Let’s take horizontal expansion as an example. Customers already satisfied with your solution are more likely to purchase additional products from your company. By creating value, you gain their trust and remove any barriers they might have to try out your new features. As a result, offering upsells and cross-sells becomes more practical.
Improve employee retention rate 📈
The value provided to customers is the main reason they are ready to part with their hard-earned cash in exchange for your goods and services. However, many businesses out there aren’t aware of how to offer this kind of value to their clients, and they will fall behind their competitors in the battle to generate more sales.
More sales = more revenue. This means that with more revenue, you will offer a growing number of incentives to the employees working for you. As a result, you will have an increased employee retention rate, making for more stable, reliable customer relationships overall.
9 tips and tricks for customer value creation
Summarizing the benefits above, by providing valuable products/services to your customers, you will boost your sales, improve the reputation of your business, and most importantly, increase the number of loyal customers.
I have 10 excellent tips and tricks to help you create customer value and achieve sales success.
1. Understand your customer pain points 💯
Your company might sell directly to customers (B2C) or companies (B2B). Once you have a firm grasp of your client’s demands, you can utilize this information to convince prospective and current customers that doing business with you is in their best interests.
Understanding your customer needs will give you the exact image of your customer demand. And by analyzing the demand, you can deliver value to the customer.
Here’s how to determine your customer’s pain points:
- Search Google for relevant blogs. This should be your initial step in identifying potential pain points. Identify blogs relevant to your business niche, read them, and take notes of the most discussed subjects, the most shared pieces, the articles that receive the most traffic, and the comments that receive the most upvotes.
- Conduct research on social media. Social media platforms are the most popular places for people to discuss their experiences and seek assistance. Once you begin spending time there, you will learn firsthand what your prospects are interested in and annoyed by, as well as develop strategies to persuade them to join you.
- Identify the weaknesses in your product. Put yourself in your customer’s shoes and try to see your service through their eyes as an unbiased user. This will assist you in identifying and correcting weak points and developing updates that will ensure your existing clients never leave you.
- Conduct surveys and analyze responses. Create a survey and distribute it to your customers, users, and subscribers. This will help you stay in tune with their demands, examine what currently irritates them, what they would like to see modified, which features of your product most appeal to them, and so on.
2. Market segmentation 🍒
You won’t survive in the hectic business world without market segmentation. I mean, its benefits speak for themselves:
- Market segmentation helps determine which leads generate the most money. You will understand which segments have the greatest values and which underperform.
- Market segmentation enables highly tailored targeting: leads looking to buy a new laptop will not receive an offer to buy a new car.
- With market segmentation, you can improve your nurturing and increase conversions. Segmentation lets you share educational and promotional content with your segments based on their stage in the buyer’s journey. In turn, such targeted nurturing allows you to increase your conversion rate.
Besides, 81% of executives confirm that market segmentation is a critical tool for growing profits, so don’t overlook it!
3. Emphasize quality rather than the price 🌝
Customers analyze the product quality of any particular company compared with comparable competing products. US-based motor company Ford emphasized improving quality in 1980 and got a 27% sales increase the following year.
Customers think that choosing a quality product saves money. While cheaper items may seem a good deal and bargain, when replacements and repairs are factored in, that discount gradually fades away over time. So definitely, providing good quality products will attract customers, and ultimately, they will pay any amount for a quality product.
4. Provide a lucrative unique selling proposition 😲
In basic terms, a unique selling proposition (USP) refers to a unique value your business brings to customers that sets you apart from rivals. Additionally, it aids in the development of a positive image for your business.
While developing a USP, points to keep in mind are that:
- It should be simple and straightforward.
- It should express your customers’ benefits from purchasing and using your products/services.
- It should demonstrate how you differ from or outperform the competition’s offer.
5. Research competitors’ strategies 🔍
Your business might be new to the market or expand further. While understanding your customer’s requirements and desires is critical, you’ll also need a firm grasp of research methodologies, which will be a significant expense for your company.
However, if you first study your rivals’ approaches and marketing campaigns, you will have a better understanding of your niche. Occasionally, a competitor’s approach might offer you an opportunity to exploit flaws to compete with them.
6. Educate your customers 👩🏫
Customers are the end-user of your product/service. So if you don’t educate your customers about your solution, how can they reach for it?
You can write blog content, provide tutorials for your product, arrange public seminars, and use many more ways to educate your customers. This will generate a good perception of your brand and help you create customer value.
Once you have ensured that your customers are well-informed about your product/service and can utilize it without difficulty, you can request their referrals, improving your marketing program.
7. Provide the best customer support 👩⚕️
The first and foremost way to make a customer loyal to your product or service is to provide top-notch customer service. If your customer feels valued and gets respect from your customer service team, they will have a positive impression of your brand.
However, sometimes your customer service representatives might not work as efficiently as they could. You can increase their productivity by tracking their activities. For example, you can use a time tracker with screenshots to get the best output from your customer service team.
8. Create an online community for your customer feedback 🌎
Customer feedback is necessary to evaluate your business. You can use any social media platform to build communities, and your support team can manage these communities by providing essential answers to your customer’s questions. The online community generates customer value and can be a platform for attracting potential customers to your company.
Customer feedback is a key source of customer value. However, it might be difficult to obtain feedback from customers unwilling to express their thoughts. An online forum for customer feedback can be established to address this issue, where individuals can ask questions about products/services and receive valuable comments from other customers.
9. Surprise your customers with exciting offers 🎁
It’s tough to find any person who doesn’t like discounts and targeted offers, and there’s plenty of them to choose from.
For example, offering personalized gift vouchers can bring customer value and increase sales. It’s a more sophisticated form of seasonal discounts. A personalized coupon is the finest way to make your customers feel special and entice them to spend more.
Vouchers can serve as a token of appreciation. While packing a recent order for a customer, you can include a gift coupon. You can also reward your existing customers with gift codes in their emails.
Customers need to feel that they are getting their money’s worth and receiving high-quality products/services. By providing the best quality and customer support, you can generate more value for your customers and boost your sales.
Besides, don’t forget to keep an eye out for new chances in the present market. This will enable you to discover new methods to provide value to your consumer. Remember that your competitors are not taking a break, and neither should you!