In this blog
post I'm going to write about how to increase value through good services.
Delivering high customer value is at the center of any successful business. In today’s
world the competition between companies is increasing. Businesses
have to create a customer-centric mindset and offer more than just the product
for the customer that they and all the other companies are
selling. When selling the product it is important to offer the
best services for the customer and this way create value of the product and the
business itself.
"Start from the
why?"
I watched a video (click!) where
Reima Rönnholm from Palmu Inc. talks about services design. One
of his main points is about solving the right problems inside
the company. He also states that usually the solution is already there inside
the problem. The main thing to understand about problems is that the right
problems are more important than right solutions. This way services can fulfill
the needs and goals of the customer. It is important for the company to help
customers with what they want to achieve.
For companies to do this they have to start asking why instead of what and how. This way the company can create a better customer-centric mindset. The customers buying process can be compared to a story or movie. Rönnholm also points out that people don't want to use services, thet want to do something meaningful in life and above all live happy.
"We need radical innovations."
Rönnholm encourages radical
innovations. In his opinion professionalism and specialist are dangerous. They
block radical ideas because they know too much and kill the idea
without trying it out. Rönnholm says we shouldn't be ex
experts, we should be generalists. It is important to experiment, learn, fail and try again so that the company can develop.
experts, we should be generalists. It is important to experiment, learn, fail and try again so that the company can develop.
I searched the internet and
found a few interesting links (click &
click) about increasing
and developing customer value with different strategies. Here are four tips that I combined from the two links I read.
1. SALES
Meaning sell more to the
existing customers. The most basic tactics are cross-selling and up-selling. It
is important though not to over use them and affect negatively on the
customer relationship.
Here's an
example from this article, (click!).
For instance, a company can
also deliver customer value through down-sell and usage
stimulation. Consider a Bank that, instead of sending more product cross
sales offers, sends credit cards to customers and offers to increase in their
credit limit. They know that, on average, when a customer’s credit limit
goes up they will use at least some of that extra limit. This then is usage
stimulation: same product, more sales.
2. LOYALTY
Go the extra mile. Look
beyond what customers want. Increase customer lifetime value it is important to
retain customers for longer. It costs less to retain a customer than acquire a
new one. This is why it's meaningful to retain the right customers and to keep
them loyal by keeping them satisfied.
3. COST AND DISCOUNTS
Simply lower the cost, give
discounts and freebies to serve your customer. This also helps to keep
them loyal. Reward the clients with privileges that other
clients don't have access to. In ex. give members a 50 %
discount compared regular customer who get 20%.
Lowering the cost can
be done in many ways. In example, stop marketing to low value customers. Do not
use your resources and continue to market for those who cannot or won't buy
your products or services.
4. DEVELOP YOUR SERVICES
Constantly look for ways to
upgrade your services. It's not enough to deliver excellent customer services,
you may need to outsource customer service or develop apps so that customer can
access your brand.
How would you develop
customer experience and services to increase value for a company?