Every day, for various reasons, customers ask for discounts; they seek to get the maximum benefit from the purchase of goods from the company. In turn, the business, fearing losing potential buyers, makes concessions to them. Check how to create value for your company in the market in the article below.
How to Create Customer Value and Win the Competition?
When making purchasing decisions, buyers tend to compare the perceived benefits of similar products or services. After that, from all the offers available on the market, they will already choose products that provide maximum lifetime value. Because each individual customer has their own unique set of needs, desires, and capabilities, each product or service on the market will have its own unique value for each customer.
When the buyer understands what benefit he will receive now or in the future from our product, it is easier for him to part with the money. An important point: in the eyes of the buyer, the benefits from cooperation with us or the purchase of our products should be higher than the amount that he pays. Therefore, the main task of all sellers is to show the product to the client so that the value in his eyes increases to the maximum.
An important factor in creating the value of your product is the process of studying the offers of competitors. Competitive monitoring helps:
- find the weaknesses of the company and improve them;
- highlight the benefits and find out the uniqueness of the product;
- attract an additional target audience;
- identify competitors with new ideas for a product, advertising, or promotion.
Why Should You Focus on Creating Value for the Customer?
If you think that the most important thing for the client is the price, then you are mistaken. In fact, the most important thing is the value that the client receives by paying the required price. And the greater the difference between value and price, the more value he receives for this money, and the more profitable the purchase. Check three reasons why you should focus on creating value for the customer:
- To create products that better meet customer needs.
People buy solutions to their problems, not a set of features and functions. Understanding what is valuable to customers helps to create products that provide the highest value with the minimum set of features. This saves company resources, plus such products are easier to promote and sell.
- Win customer loyalty.
Greater value leads to greater purchase satisfaction. A satisfied customer is a loyal customer.
- Win the competition.
Companies that compete on price often lose out. Cost is definitely one of the factors for the client. But many people are willing to pay more when they see the value and feel the money is worth it.
It is important to understand here that customer value is not your product or service, as company employees often think. The value of a product or service in the eyes of the consumer is how successfully his problems will be solved, and his needs will be satisfied through your product or service. Therefore, it is necessary to formulate values from the point of view of customers, understanding them as customers understand them, and saying about them what the customers themselves say about it.