In the first part of this 2 part post I mentioned that added value is something a customer perceives as an increase in a products’ benefit or worth. So value is 100% customer dependent, anything else is just an add-on, additional feature. In addition I made the claim that all added values have 1 common denominator; they solve customers’ problems! The value for the customer is in the resolution of her/his problem.
So, we’ve got customers and their problems, these for me are the sources for first identifying and then creating added value.
First and foremost, to create added value you must first identify the problems that you will address and resolve. To do so you need to interact with your customers. Remember this does not have to be end customer; this is applicable to all customers, internal and external. The better your relationship with your customer the easier it will be to engage with them and identify their challenges. So don’t go thinking that a quick “What should we do better survey” will suffice. This is something you have to work on and like long distance races, relationships are won over time.
Try and get close enough to see what is troubling them, not only directly related to your end product but in a broader sense.
Here is a practical example. In his post “Should all customers be treated equally” Jake La Caze talks about the value for him in getting his new iPhone already charged so he can get started right away copying agendas without having to wait for it to charge up. A simple but crystal clear example of value and how it was identified by the sales person in question.
The closer you are to your customer the easier it will be to identify these issues. But the most ideal way, IMHO, is not to walk a mile in your clients shoes as the saying goes but to walk a mile with her / him. Actually spend time with your customer in their day to day activities, easy said than done but I think it’s worth it. I have never walked away from spending time with a client without having some new idea for create value.
Establishing a close relationship not only enables you to identify new ways of create valuing for your customer base. It also enables you to identify over deliveries on your behalf, features, services, etc. that are of no interest and create no value for your customer. So the relationship helps you identify and eliminate waste.
So the grand trade off in sincerely creating value is that you have the opportunity to reduce waste and costs!!! Streamline your product / service into strictly what is needed from your customers stand point.
Take aways:
1. Identify your customer’s problems, they are the sources that will enable you to create added value. Added value is established through the resolution of these problems.
2. You need to work towards closer relationships with your customer to identify these problems.
3. These close relationships are actually quid pro quo in which a trade off is inherently established, you create extra value for your customer while you reduce waste / costs (features of your “product” which are of no interest to your customers).
How do you identify and create added value for your customers? Do you have a process, even ad-hoc?
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