Winning Customers:

Creating Customer Value

Customer Value Proposition

Creating and Giving Your Customer More Benefits

By: Vadim Kotelnikov

Founder, Ten3 Business e-Coach Inspiration and Innovation Unlimited!

 

 

"Price is what you pay.

Value is what you get." 

~ Warren Buffet 

Winning Customers (PowerPoint download)

 

Customer Value Proposition Winning Customers Effective Pricing Emotional Marketing Creating Customer Value Synergy Custromer Value Proposition: Good Idea + Emotional Considerations + Fair Price

Essential Elements of Customer Value Proposition

A value proposition typically contains the essential elements of:

  1. Feature: a specific important feature of your offer

  2. Advantage:  as compared to the competition

  3. Benefit: to the customer

  4. Image: a picture that  conveys feeling and is easy to remember.

  5. Offer: a call to action.

Three Generic Value Propositions (Value Disciplines)

By Treacy & Wiersma7

  1. The best total cost (best price, hassle-free service), like McDonald's

  2. The best product (best performance), like Nike

  3. The best solution (tailored, individual service), like Harrods

The trick is to excel in one area while maintaining acceptable levels in the others.

 

 

Three Stages of the Quest for Value3

  1. Quality. In the 1970s and early 1980s many companies had to admit that they didn't know how to make durable goods or deliver reliable services. The buzz of Total Quality and all its variants filled the air. Companies learned to operate in a continuous improvement mode, turning state-of-the-art into standard operating procedure. Gradually, good functioning became the norm. But rather than satisfy customer hunger, it only increased value-whetted appetites for more convenience, lower prices, and an endless stream of innovative products and services.

  2. Single Value Discipline. Successful organizations where those who excelled at delivering one type of value – best total cost, best product, or best total solution – to their chosen customers. Managers focused on a single value discipline and build their organizations around it. Choosing one discipline does not mean abandoning the others. It means that a company directs its energy and emphasis. It narrows its focus to become a market leader – it is going for the gold in their chosen discipline and settling for a silver or bronze in the other.

  3. Customer Intimacy. Customers refuse to be anonymous. They continue to raise the level of their requirements, but their range extends beyond best price and best product. Today's customers want exactly the right selection of products or services that will help them get exactly the total solution they have in mind. Now, more than ever, customers hunger for superior results from the products or services they use. And customer intimacy gives it to them.

 

The Best Technique to Win the Customer Over

Skillful integration of the following three considerations can prove irresistible:

  1. Good idea

  2. Fair price

  3. Emotional considerations

 Discover more!

Creating Customer Value

Customer Care

Customer-driven Innovation

Value Innovation

Innovation Is Love

Customer Satisfaction

Winning Customers

Creating Customers

The Art of Selling

Selling Is Problem Solving

Entrepreneurs' Primer on Marketing, Advertising and Selling

Effective Pricing

Effective Advertising

Unique Selling Proposition (USP)

Advertising Slogans

Best Advertising Slogans: Apples

Best Advertising Slogans: Fun4Biz.com

Differentiation Strategies

4 Steps of Your Differentiation Strategy

Differentiating With Different Types of People

Positioning

Competitive Strategy

Surprise To Win

What is Value Proposition?

Value proposition is a description of the customer problem, the solution that addresses the problem, and the value of this solution from the customer's perspective.

Yin-Yang of Customer Value Creation

Selling Is Problem Solving

Why Customer Value Proposition?

Your company should deliver a particular customer value proposition to a definable market in order to exist. Competition is all about value: creating it and capturing it.

 

"In fact, your values are the reason you do everything you do. Plain and simple. And since everyone on this planet holds to these values, effective marketing targets the corollary emotions that run as conduits from these mission control centers. This is the secret to instant access into someone’s subconscious mind. It is also the answer to doing this so effectively that the subconscious literally kicks the conscious mind of your target market in the seat of its pants and compels it to do something. These control centers work to drive the behaviors of everyone. If someone values what you have, they will trade you their money for what you have. Now that’s a value!" says Mike Litman.8

Synergistic Selling: 3 Components

Competitive Strategies

3 Strategies of Market Leaders

Blue Ocean vs. Red Ocean Strategy

Why People Purchase?

Why people purchase? And how to get more of them to purchase from you now?

“Let’s get right down to the heart of the matter. The power, the force, the overwhelming urge to own that makes advertising work, comes from the market itself, and not from the copy. Copy cannot create desire for a product. It can only take the hopes, dreams, fears and desires that already exist in the hearts of millions of people, and focus those already existing desires on to a particular product. This is the copywriter’s task: not to create this mass desire – but to channel and direct it, ” wrote Eugene Schwartz.

A powerful quote. As an entrepreneur the purpose of your marketing efforts is to direct desire. People do what they want…desire…to do and this is rooted in six values that are universal to everyone. So it stands to reason that if these values are universal and if they like a puppeteer pull the strings on how people feel, then all you need to do in your marketing efforts is tap into a value system with copy that stirs the emotions.

Differentiation Strategies

Buzz Marketing

What Is Perceived Value to the Customer?

You can charge the customer the value provided, regardless of its cost. "If the price charged for an item is commensurate with the benefits provided, then it will be considered a good value in the mind of the buyer. But remember, there are limits even in a monopolistic situation."1

Create Customer Value: 10 Matsushita Lessons

Customer Care

Define Your Internal Core Marketing Message

To create a business-generating marketing program, the first direction to go is inward. Before you create your outward-reaching promotional materials, you've got to get a fix on your internal Core Marketing Message – in other words, what customer value are you selling, and why should anyone care?... More

Describe Your Unique Advantage

Differentiate – describe the unique advantages of your service over your competition, and what makes you special, memorable, and stand apart from your competitors. Strong differentiation techniques include uniqueness, leadership, attribute ownership, heritage, your philosophies and values, use testimonies.

If you feel uncomfortable to boldly claim your own special qualities,  seriously ask yourself the question "What would be different about the world if you were not here?" and your special attributes will emerge for you.9

Surprise To Win: 3 Strategies

Do Your Customers Enjoy Buying from You?

Why would people want buy from you if they don't enjoy doing so? Making what you have to sell fun to buy is simply taking the whole process one step further. "If you can make your customers laugh, and excite them with your vision of what life can be, they are not going to walk into your outlets, but run into them. Running a successful business should be fun for you, and there's every reason why you should be able to communicate that sense of fun to your customers. Certainly, if you aren't having fun, you probably aren't running a successful business."2

 

 Discover much more in the

FULL VERSION of e-Coach

What Is Your Business Design?...

Marketing & Selling Strategy at Different Company Growth Stages...

Market Research: Defining Market Segment & Customer Profile...

The Best Technique to Win the Customer Over...

Understanding Risks Perceived by Customers...

Three R's of Marketing...

Marketing and Selling Is All About Perceptions...

"When" Is a New "What"...

Three Stages of the Marketing Process...

Five Components of Marketing...

Get the Most Out Of Information Technology Tools...

Learning from Successes and Failures...

Two Main Ways to Grow Revenue...

Credibility Marketing...

Customer Intimacy...

Listening to Your Customer...

Effective Market Segmentation – Divide and Conquer...

Experiential Marketing...

Emotional Marketing...

Differentiating With Different Types of People...

Buzz Marketing...

 Case in Point  Nike...

 Case in Point  Palm...

 Case in Point  Dell Computers...

 Case in Point  Guiness...

 Case in Point  Half.com...

 Case in Point  Estee Lauder...

 Case in Point  Seth Godin...

 Case in Point  Rich Dad, Poor Dad...

 Case in Point  Coca Cola...

 

References:

  1. "The 10-Day MBA", Steven Silbiger

  2. "The Seven Deadly Skills of Competing", James Essinger & Helen Wylie

  3. "Customer Intimacy", Fred Wiersema

  4. "Strategic Achievement", Andrew Spanyi

  5. "Agenda", Michael Hammer

  6. "Changing Strategic Direction", Peter Skat-Rřrdam

  7. "The Discipline of the Market Leaders", W.Treacy & F.wiersema

  8. "Unleash Your Greatness," Mike Litman

  9. "Get Clear About Your Core Marketing Message," Martha Carnahan, MC3 Strategies

  10. Winning Customers, Vadim Kotelnikov