PROVIDING EVIDENCE OF YOUR CUSTOMER VALUE

We understand how important is to deliver high customer value but this will mean nothing if our customers are not aware of it. A critical factor is being able to prove your value. Potential customers require evidence of your capability and value. As stated by Barnes et al (2009) in a “world made cynical by hype, your word is simply not enough”.

It is essential to provide a reason to choose you through credible evidence to prove your claims. The authors propose the following tools; case studies, write a book and become a thought leader, develop articles or use on- and off-line, publish customer testimonials and a value calculator. This last point relates to the need to adopt formal measurement techniques to measure and track the impact of your value proposition.

British Airways represents a good example of how a company can create a value calculator to materialise customer value. They are using EasyJet and Ryanair to demonstrate how BA’s customer value is higher than their competitors. This tool enable users to select how they are choosing to travel; checking at the airport or online, selection seat 24 hours before they fly, taking a bag or even opting for food and drinks on board. Once all the options are selected it will calculate what Ryanair, EasyJet and BA will charge for those options.

The objective of the calculator is to highlight the customer value delivered by BA in comparison to what their closest competitors are offering for a higher price. BA head of UK and Ireland sales Richard Tams said: ‘Some no-frills carriers charge for a range of ‘extras’ that we consider to be part of our core service, from checking in a bag to food and drinks on board. On a round trip customers can be paying up to £375 on Ryanair and £79 on EasyJet for these ‘extras’ in addition to their fare. The no frills airlines claim they’re always cheaper. Our calculator shows they are not.’

As we can see, providing evidence of your value is critical for your ongoing success. Any company must decide which measures to use and implement them, communicating the results to help them growing sales and keep the business focused on value.

Barnes C., Blake H. and Pinder D., 2009. Creating & delivering your value proposition: managing customer experience for profit. London. Kogan Page.