In
order to be competitive in the market a company must deliver value to its
customers. One of the most important questions a company has to formulate
themselves is: how can a company create customer value to generate big profits?
Many of us will suggest that the company has two options; either lower prices
or increase quality of the product. But the truth is that there is much more
behind the concept of customer value.
Nils de
Witte, an expert on marketing posted the following video on YouTube, explaining
what is customer value and how can it be improved.
Nils starts
describing customer value as the result of dividing benefits by costs. Having said that, customer value will increase when either
benefits increase and/or costs decrease. In addition, Nils affirms that the essence of
creating value is: trading something that is low cost to you for something that
is of high value to the customer. Therefore if a company aims to increase
customer value, can either increase the benefits related to the purchase or
decrease the costs attached to it.
As
shown in the video benefits and costs should be analysed as something else than
just value per money. It involves also time, attention, reputation, privacy,
status, comfort, ease of mind excitement, entertainment or effort amongst
others…
At this
stage, I am really interested in
getting to know specific tools to increase customer value from a company’s
point of view.
No comments:
Post a Comment