DELIVERING GOOD SERVICES AND INCREASING VALUE

 

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.

 

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?