In order to understand value in your organization, you need to develop a value chain. This means methodically analyze your core and supporting activities and how everything is connected and where there’s a disconnect with your processes, resources, and the overall understanding of value as defined by the customer. It’s not so much about what you think is of value to a customer but more of what the customers perceive is of value.
In order to create value, you need to know your customers and understand their perception of “value” of the product or service you provide. You also need to know how processes positively or negatively impact customer service, customer loyalty, customer retention, and customer satisfaction.
A customer’s idea of what represents value for money may well vary from one customer to another and can also shift through time, season, or even day to day. At the most basic level, customers with tight budgets will think of value as getting more for their dollar. Other customers may be prepared to pay more in order to receive a higher quality of service. There are others who are willing to pay a higher price tag on the psychological value in being able to say that they are able to afford to be customers of high-status names even though in some cases, their products or services may not be any better than a lower-priced product or service company.
As managers, you must be aware of the full range of influences on the customers’ assessment of value. A key element in this understanding is the relationship between the service brand values as communicated to the customer and the potential variance or incongruence in terms of customer experience.
Sustainable business makes dollars and sense. Are you providing value that makes dollars and sense?
Til next time…. be well and be blessed.
