Sick of loosing business over mere pennies? Don’t compete on price, win by providing exceptional value.
Customers are constantly seeking better service, innovation and great experiences, in short VALUE. In order to meet those expectations than companies need to hire top performers, make investments in technology, conduct ongoing research, and invest in training their employees. These investments come at a cost.
A close friend of mine recently lost his iPhone and he was shocked when he had to pay $600+ for a new iPhone 6. There’s a reason it costs over $600 to replace; companies needed the profits from those devices to continue to innovate. Those profits go right back in to their company in order hire the top engineers to design faster processors, programmers to develop software, researchers to understand what features are necessary, the list goes on. That investment in their user experience and constant innovation is what separates brands like Apple, Google, and Samsung.
So what can you learn from Apple’s, Google’s and Samsung’s success?
Every business has been challenged to find the right price for their product or service. Some will go as far as taking a loss to get customers in the door. Don’t get caught in this ‘race to the bottom’! It is a death spiral that is hard to get out of. Once you stop the profit coming in, you loose your ability to attract the talent and technology investments to compete, along with your ability to innovate. Embrace the importance of providing value to your customers and profit will follow.
How do you make the change to a value provider?
“Ask your customers what they want, find a way to give it to them and you will never have to sell a day in your life.”
1. Listen to your customers:
Everyone has a problem that needs to be solved. The easiest way to understand what those problems are is to ask. Conduct a survey, look through Social Media, Email past clients, friends or colleagues, or Google it! The more time you invest in research and LISTENING to your customers, the more prepared you will be to reposition your business.
2. Be prepared to change:
If you truly listen to what your customers tell you and you are committed to providing value, then you will most likely need to change how you are currently marketing your business – it is no longer “Death by PowerPoint”.
3. Give them what they asked for:
Take a look at your products and services and determine; “How does this (product/service) solve my customers problems?” The answer to that question is the fastest and most effective marketing message any business will ever develop.
For some businesses this process is much easier than others, however it is vital that you remember the bigger the problem you solve, the higher the value (and usually the price of the solution).
In a future blog post I will be posting links to free research tools you can use to learn more about your customers problems. Make sure you subscribe to get immediate access to those free tools.