The term ‘value’ has many meanings. In business, it often refers to a product’s monetary worth.
An alternative meaning of the word ‘value’, as it relates to the importance or usefulness of something, is quickly gaining ground in business as the most important way to grow customer loyalty, a share of funds and drive business profitability.
“From my research, there is a direct link between a customers level of satisfaction and their propensity to recommend the brand, to buy additional services, or to stay with the brand long-term.”
“The first is driving up customer satisfaction through valuable interactions and experiences. The second is extracting value for the business.
Another way businesses are driving value is through client referrals. Performing brands rely on referrals from their existing customers/clients as their primary source of new leads, highlighting the criticality of a loyal customer base.
The first step is to understand the issue. What problem or need are you are solving for your clients and why?
“This is about clearly articulating your value proposition. Past research shows that customers who feel highly satisfied are those who feel valued beyond the business transaction. Customers want to be understood, coupled with their needs and will feel most valued when their needs are being met, not when you are merely effecting a transaction.
The second step is defining the interaction you have with clients and customers. How and when do you interact, and who is involved?
A common challenge for many Entrepreneurs is how to spend more time with their most valuable customers. It’s not an easy task, but it is doable.
Successful brands look at their internal structures and think about how they can reframe staff roles and incentives to align with their new value proposition. They also look for external partnerships they can leverage along the supply chain to create new value for the customers.
The third step is impacting. Why is your offering important to your customers? Does it provide meaning beyond a transaction?
“This last step is the hardest one because it requires you to understand your customers’ needs on a rational and emotional level and communicate that you are able to deliver that value to them.
I know that changes in technology and growing access to data and information are influencing the way customers interact with their finances.
“You need to show clients how your actions and services have contributed to their satisfaction with you and your brand. That requires a heightened awareness of how and when you communicate with them.
“In the end, building value builds trust, and trust is the most important driver of growing your business.”