How the generation of value can be a differentiator for companies; Some associations achieve a prominent position in the minds of consumers. They turn customers into partners, who generate useful information and promote a brand, new market shares.
The difference is in the value generation, which enables you to exceed buyers’ expectations and make them fall in love with your business.
What is value creation?
Creating customer value is a simple concept. When he pays for your products or services and feels he is getting more than he should, weight has been generated. From the consumer’s perspective, the purchase is cheap.
This extra value is also linked to brand equity, the customer’s perception of the brand. Think about how some consumers are fans of specific companies, not only purchasing all of their products but having friends and family try out how wonderful they can be.
Both value generation and brand equity are intangible and variable – both occur in the relationship between a brand and its consumers.
Why is it so important?
Generation of Value
The facilities generated by innovation made consumers more and more demanding. Having their expectations met is no longer enough: they want them to be exceeded.
This movement strengthened a customer-centricity culture; which can be understood as a total focus on the current and future needs of the market. Companies with this mindset don’t launch a product and are eligible for it to deliver good results; they create a solution to a given problem.
In addition to the product, it is also essential to build a valued experience. So, Amazon is one of the most prominent examples to follow and consolidate this trend, offering one-click shopping, fast delivery, a simplified return policy, and so on.
Generating value becomes increasingly important as barriers to entry are dropped, and barriers to entry are increased.
A company can no longer differentiate itself through good service; which is now a must; and needs to deliver value through its products and services to maintain a solid customer base.
What are the main challenges in generating value ?
No matter how simple its description, in practice, generating value involves overcoming varied objectives, which must constantly prepare the company.
Understand the customer
Generation of Value
The organization needs to work with factual information about the customer, their desires, behaviors, and preferences. It is not enough to imagine what people want; it is necessary to investigate and confirm the hypotheses based on a data-based strategy.
No product is going to generate value for everyone, and understanding that is part of the process. So, the company’s goal at this point is to identify one or more groups of people with whom they can establish brand equity and find out what value means to them.
Perhaps the biggest challenge in creating value is getting the organization’s leadership to put customers’ needs ahead of their own.
This is a common problem. After all, entrepreneurs, directors, and other leaders usually reach prominent positions defending their ideas. They may believe that a dedicated approach to value creation does not value their initiative and creativity.
Flexible leadership understands that this scenario offers only a shift in focus. The leader will still be responsible for generating great ideas and leading his team to the outlined vision, but this vision must be based on the interests shown by the market.
The generation of value cannot be occasional. It needs to follow quality standards always to have a positive experience with the brand.
Imagine you bought a drink, and the bottle was not complete or tasted different from what you expected. If the consumer encounters such a surprise, this will immediately reduce the brand equity, and the company will have to rebuild the connection.
The idea applies to both the products and the service, packaging, sales locations, and other contact points between the customer and the brand.
There are methodologies, such as Six Sigma, focused on ensuring standards and maximum reduction of deviations, or Kaizen, aimed at continuous improvement. They are essential for an organization that wants to make the generation of value one of its pillars.
How to generate value for my customers?
The first challenge won; understand the customer; the focus on satisfying your needs determines value creation.
Delivering quality services and care is the minimum prerequisite to achieving this goal. Nothing is more potent in generating value than making the customer feel that the company cares about him, even serving thousands or millions of other consumers.
Touchpoints should offer a humanized experience – people like to talk to people, not brands that sound like robots. So an excellent way to start the approach is to give a personalized voice to the brand’s website and social media.
Implementing a Customer Success program also influences value creation, as the brand will ensure that customers have good results with the products. However, customer success is still a way to gather data from actual consumers; who have already purchased to find out how their upcoming releases can be even more valuable.
Constant innovation is also a necessary attribute to generate value. In some markets, products are created or updated steadily, but that’s not the only way to innovate. For example, your company can offer new packaging, promotions, unique virtual experiences, special programs for your most frequent customers, and so on.
To keep innovating, an organization can adopt the daily practice of brainstorming. Giving space for employees from different areas to bring ideas on how to generate value from their field of action.