Monday, July 25th, 2016
One of your key responsibilities is ensuring that your customers see huge value in our offering. Many businesses focus primarily on reducing their cost to customers: if a customer gets the same product for less money, they see greater value in the investment. But merely driving down costs makes for a low-margin future, and strategically locks you in an ongoing price war with your competitors.
A far more effective–and enjoyable–path is seeking to improve the value of your product, so your customers are getting more for the same price. Doing this creates greater customer loyalty, improves your margins, and improves the satisfaction of your team, knowing that they’re better serving your customers rather than simply trying to be the lowest-cost provider.
To do this, get close to your customers. Don’t just ask them what they want from you: they are not likely to be able to conjure up in their minds what you can do for them. And that’s not their job: it’s yours. Understand how your product or service interacts with their business, and what changes would make the most impact to them. Approach this investigation by starting with the following questions:
- How do they use your product?
- What about their business are they trying to improve with your product?
- What resources do they deploy by working with your product?
- What do they have to do internally in order to work with your product?
- What is their experience trying to acquire your product?
- What is your customer’s biggest pain point that your product interacts with?
Summing-up: understand what you can change about your product that will most improve your value to your customers, and you’ll find yourself not only holding on to customers you may have been losing, but you may also find yourself at a higher price point.