What is customer value?
Value means many things to different people and in fact often gets overlooked by people who merely refer to the 'features' of their products and services.
What we do know is that high performing business people have three things in common:
They have an overriding intention to deliver real Value
They can articulate the Value they will deliver based on a strong knowledge of the actual requirements of the user of their products and services
The can then deliver the Value they have previously articulated
So what is Value?
Value is more than just the benefits to derived from the products and services. We believe that when determining 'Value', we should consider the cost of taking on the product or service.
Hence, Value = Benefits of doing business with you less the Costs of doing business with you.
Furthermore, benefits and costs can be further identified into three key criteria:
Relationship / Emotional
When evaluating the Value you deliver, consider:
What are the Financial impacts eg. Increasing revenue, reduction of fixed costs or improvement of Gross Profit?
What impacts do your products and services have the Operations of the business of your customer eg will it save time and improve efficiencies or conversely is there a considerable impact on the existing processes that need to be taken into account?
What Relationship or Emotional considerations need to be taken into account? For example whilst your products and services may be easy to implement, significantly improve operating efficiency and lower costs the person you are transacting with may in fact stand to lose their job as a result!
Importantly different people value different things so what may appear to deliver Value to one person may fall well short with another.
Tips from John Buchanan, Beyond 19, Coaching Practicing Lead:
Establish what 'value' really means to a potential client, because sometimes the best 'value' you can offer a client is to realise you do not have any
'Value' can and will change over time so keep close to your client and their needs
Want to find out more? Please contact me: firstname.lastname@example.org to arrange a time for an obligation free chat.
Beyond 19 have recently announced the arrival of a new revolutionary salesforce app to help sales teams fast-track deals with the right behaviour.