Many companies still believe that their customers exchange money for products that they offer. You rather should offer value to your customers…
What value means to your customers
Customers want value before they spend their money on your products or services. The common definition of value relies on the price-quality ratio of a product or the difference between perceived benefits and perceived costs.
To put it practically – if your competitor can offer the same value for a product or service as you do, but at a lower price, you’re going to lose customers.
What do customers perceive as value?
Perceived value comprises two complementary concepts, namely perceived benefits and perceived costs.
In today’s digital market place, there are numerous identical products on offer (e.g. cosmetics), with many at the same price. What will make a customer to buy from you instead of the others? Your products or services should provide superior benefits to the customers.
Customers may perceive benefits in the following ways:
- Product features,
- Product design,
- Reputation, and
- Service and support.
Value is created when the perceived benefits that a company offers meets the needs of its customers.
Planning to deliver superior value to your customers
Companies that strive to survive and grow should know what the value offer of their competitors are to customers in the market as well as what the customer’s needs are.
A differentiation strategy with a customer focus will go long way to ensure that the company enjoy a competitive advantage in the marketplace.
The retail market is very dynamic. With all the new digital gadgets that are available to enhance customer experience, what customers experience as value may change very quickly. So you need to know the latest innovations and how the customers react to that.
A Marketing Plan helps you to communicate the right content to the right audience.