I say it all the time: “A successful business must deliver value.” What does that mean? What is value?
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Now, assuming that you’re aware of your target market, it’s time to decide how to deliver value to that market.
What is Value?
Value is subjective. Different people value different things.
Generally, your business will work well when both you and your customers receive value from each transaction.
What do customers value?
Consumers are happy when they receive a high benefits-to-cost ration.
That’s why the lowest price doesn’t always win the sale.
So, when you market your products and services, pay attention to your value proposition.
What is a value proposition?
I define your value proposition as the sum total of all the benefits your customers receive when they choose to buy from you.
So, although this includes the items purchased, your value proposition also involves customer service, prestige, comfort, and other non-tangible items.
What do sellers value?
As a seller, you might have a different perception of value. However, in most cases, your perspective of value will motivate you to satisfy your customers’ perception of value.
Lifetime Value of a Customer
In the world of the triple bottom line, you’re probably interested in maximizing the potential profit from every customer.
So, even if an initial transaction might generate a small profit, that can change over time.
What does society value?
Like it or not, politics, media, and social activism have a lot to do with modern marketing. With this in mind, what should you do?
You could stick your head in the sand and pretend these influences don’t exist. To me, that policy seems increasingly ineffective.
So, you’re either going to join the trend and cater to customers who are concerned about ethical decision making and social responsibility.
If you’re not going to join the “Leftist” influences in marketing, you still need to deliver value from society’s perspective. In such a case, you’ll market against everything the “Left” pressures you to do.
In so doing, you create value for a large segment of society that doesn’t receive a lot of publicity in media. As a matter of fact, you might think those on the “Right” don’t exist and have no buying power.
So, regardless of which side you want to take, you should take it and make it a part of your marketing strategy.
Bottom Line: Ignoring social values is a recipe for defeat.
If you’ve read my ebook and other materials on business strategy, you already know the importance of creating a competitive advantage for your business.
Generally speaking, your competitive advantage is developing a competency that sets your business and brand apart from your competitors’.
Ideally, your competitive edge will provide something that’s important to your customers. To do that, you need to create an effective value chain.
What is Value and the Value Chain?
A value chain is a series of actions taken by your business that either adds or subtracts value for your customers. For instance, designing products, producing
Start Delivering Value
You asked the question, “What is
When you understand what value you’re currently providing, compare it to the value that your customers and society are expecting.
Afterward, you’ll have a foundation on which to build a solid, relevant value chain that will help your business compete and win.
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Bruce Tyson has much experience helping small and mid-sized businesses understand and leverage the concept of value. Contact us today to discuss the needs of your business and request a custom quote.
Meanwhile, visit Forbes.com to learn more about delivering value to your customers.