Customer value is the customers’ perception of a product. Woodruff suggests: “a customer perceived preference for and evaluation of those products attributes, attribute performances, and consequences arising from use that facilitate (or block) achieving the customer’s goals and purposes in use situations” (Shanker, 2012a). Woodruff goes on to suggest that ” also emotional payoff and achievement of a goal or survival greatly depends on the customer’s experience” (Shanker, 2012a). Therefore your success depends on your customer’s opinion of the quality of your service. Paying attention to negative opinion is just as important as reduplicating a positive experience for the customer. Economist Adrian Swinscoe suggests that we need to focus on is what appear to be minor issues and not only the obvious ones. Some of the things he suggests to avoid are:
- • Extended wait periods to speak to someone
- • Unknowledgeable agents
- • Difficulties in finding contact information
- • Getting disengaged employees when you contact the company
- • Better promotions for new clients and nothing for existing clients
- • Not fulfilling your promise
- • Obtuse language (Swinscoe, 2014)
By avoiding these pit falls as well as doing the obvious things such as providing a great products and offering support, a company can remain competitive. Customers are the lifeline to the organization and should never be ignored. Providing the best customer value can help assure that clients will return.
Aspects of Customer Value
There are two aspects to customer aspects to customer value. They are perceived value and desired value. Desired value is what the customer wants and perceived value is what the customer thinks about the products or goods they received. A customer expresses a need (the desire). A company takes this desire and presents it to the client as a final product. The client then will evaluate the product and form a perception. The perceived value is particularly important because this is the last impression the client will have of the company (Shanker, 2012b).
Suppliers and Customer Value.
A supplier must look at what is it that the customer really values. Shanker uses the example of getting a cup of coffee with a friend. That cup of coffee that will be consumed at the shop while conversing with their friend may be more valuable than coffee they can just take to go. Shanker goes on to note that that both cups of coffee may cost the same, however the experience of being with a friend makes one cup more valuable to the customer than the other (Shanker, 2012a). To provide a true customer value, the supplier must be able to look at the bigger picture. What is the real need of the customer?
How Can a Supplier Provide an Extraordinary Customer Value Propositions
A customer value proposition is most easily explained as what the customer can expect from purchasing your product (Hadaoff, 2009). There are traits that suppliers can emulate that will help achieve a successful customer value proposition. First when the firm provides marketing material be careful of making claims without somehow backing it up. Without this, customer may merely dismiss it as a marketing ploy and not take your product as seriously (Anderson, Narus, Van Rossum, 2006). Secondly use the proposition as an opportunity to focus on what the customer wants and how much does this product satisfy that need (Anderson, Narus, Van Rossum, 2006). In this matter a company can also anticipate potential problem areas for their product. Lastly Billington and Nie suggest there are two primary customer value propositions. One promises lowest possible price with easy purchasing options; the second provides possibly a higher price however a richer purchasing experience. They further suggest that the proposition itself should dictate the product and how it is presented into the market (Bullington & Nie, 2009).
By providing a good experience for a customer, a company has a better chance of surviving. In addition when advertising the product, it is essential to not only list its qualities, but also stand out form the competitors. Customers have many options. As a company in today’s marketplace, it is critical to provide stellar service and differencing
Anderson, J. C., Narus, J. A., & Wouter, v. R. (2006, 03). Customer value propositions in business markets. Harvard Business Review, 84, 90-99. Retrieved from http://search.proquest.com/docview/227835040?accountid=33768
Billington, C., & Nie, W. (2009). The Customer Value Proposition Should Drive Supply Chain Design: An Example In Mass Retailing. Perspectives for Managers, (177), 1-4. Retrieved from http://search.proquest.com/docview/235114283?accountid=33768
Hudadoff, Pamela. 2009. The Customer Value Proposition Differentiation through the Eyes of Your Customer. Applied Marketing Products Retrieved from http://www.engr.colostate.edu/~marchese/stese/reading2.pdf
Shanker, Aprana. February 2012. Q&A What is Customer Value and How do you Deliver it? Technology Innovation Management Review Retrieved from http://timreview.ca/article/525
Shanker, Aprana. March 2012. A Customer Value Creation Framework for Businesses That Generate Revenue with Open Source Software. Technology Innovation Management Review Retrieved from http://timreview.ca/article/534
Swinscoe, Adrian. February 14, 2014. The Little Things That Destroy Your Customer Experience. Forbes Retrieved from http://www.forbes.com/sites/adrianswinscoe/2014/02/14/the-little-things-that-destroy-your-customer-experience/