Customer value is the perceived value of your product or service to the customer. Products and services deliver fundamental elements of value that address four kinds of needs: functional, emotional, life changing and social impact.
Understanding this concept enables you to always craft value-adding and life enriching products and services for your customers and also achieve good commercial results.
A way to understand customer value could be to look at the basic attributes of a product or service that address four kinds of needs: function, emotion, life changes, and social impact.
Functional elements, for example, include saving time, reducing risk, and organizing. The pyramid below shows how value elements fit into the four categories.
Products and services deliver fundamental elements of value that address four kinds of needs: functional, emotional, life changing and social impact. In general, the more elements provided, the greater customers’ loyalty and the higher the company’s sustained revenue growth. Companies that deliver well on multiple elements of value tend to have stronger customer loyalty and higher revenue growth rates, as Bain & Company’s analysis shows. The research documents 50 companies that deliberately added elements over time to improve their propositions, either to turn around a flagging business or to accelerate growth.
The Value Proposition canvas
Simply put, a value proposition represents the brand promise to the consumers.
Elements to focus on:
I would recommend you start the journey from the Customer side of affairs with the following questions:
- What are the customer’s actual Needs, Wants, Issues, Fears etc?
- What drives purchase decisions – logical and emotional drivers?
- Substitutes – what alternatives are they using to solve the current needs/wants/fears/issues?
Then your product must align with the above.
The value proposition must explain the following:
- How your product solves customer problems, fulfils their needs.
- The key benefits for the customer.
- Value for money – The perceived value of your product should match the customer’s willingness to pay for the price you placed on the product vs competition.
Examples of Value Propositions
Remote Logistics (www.remotelogistics.co)
I used this in the context of the situation of the Nigeria/Lagos market at that time. According to PwC, Nigeria’s poor infrastructure has constrained growth in the logistics industry. Time delays, bottlenecks for shipments, poor tracking and tracing capabilities and poor logistics quality and
competence are all industry risks that weigh on growth prospects for logistics and transport industries.
These are some of the issues we hope to solve with our Remote Logistics platform – where we aggressively seek to improve efficiency and customer experience as our utmost priority.
Unique selling point
- We leverage on technology to build platforms that will enhance good customer experience and service delivery in the logistics business operations, focusing on the following among others:
- Ease of discovery
- Ease of booking
- Ability to view the dispatch riders and estimated time of pick up, drop-off and cost.
- Transparency and regular notifications to all the parties involved to keep them well informed of the delivery status – Riders, Customer, Recipient and the Remote Logistics administrator.
SuperBi – www.superbi.co