Know Customer Value in the Marketing World
One of the most important things in running a business is to create the best products. However, satisfying consumers is also no less important. Therefore, you must know Customer Value in the marketing world.
In addition, the application of a good Customer Value concept will also make it easier for you to run a business. Starting from determining prices that are in accordance with the benefits of the product or service you offer, until they win competition with your business competitors.
Get to know and understand the meaning of Customer Value
Customer Value is one of the important aspects that must be in business success. When running a business, success is not only assessed from how much sales figures or profit figures are obtained from sales, but also must be assessed from its customer value.
Customer Value is a comprehensive benefit of customers, both tangible or intangible that is reduced by sacrifice that has been spent. By getting this information, you can find the level of satisfaction easily.
The customer value itself consists of 4 types, namely Functional Value, Monetary Value, Social Value, and Psychological Value. Functional Value is the solution offered by the product on the Pembanggang. Monetary Value is a decision on the suitability of prices with product quality.
While Social Value is about how a product is able to make its customers feel more special and feel able to help others. While Psychological Value is about how your products can make customers feel better than before.
Customer Values can also be interpreted by a combination of functional benefits of an item and emotional benefits of a product. That is, each product must have 2 functions in the eyes of the customers, namely functional and emotional.
By considering both benefits to a product, every entrepreneur will feel helped in placing their products and the entrepreneurs will later be more enthusiastic in increasing Customer Value. This condition will certainly have an impact on your business.
If your product has a very high benefit value, of course there will be many customers who will be satisfied with the product you have made. Instead, if your product has a low benefit value, then customers will feel less satisfied, and chances are they will not return to buy your product. It might even be aware of your shop to his friend.
Therefore, thinking of the whole aspect of a product before producing it is very important and must be considered when you want to start a business. You also have to make sure and find out the market in the market about the products you want to release.
With you knowing the competition or product from your business competitor, it will make it easier for you to produce products that are able to meet the functional value of benefits and emotional benefits.
You can specify it when you will start the Value Proposition Design right when you design a business. So, later you can find out who your product competitors and what are the advantages and disadvantages of the products they offer. For this reason, understand more clearly so you can produce an item that is needed by your target market.
Customer Value is also one of the very important parts in a binary because the level of customer satisfaction is very influential on business. If many customers feel satisfied, then you can get loyal customers and your business can be expanded easily because there are many customers who believe in you.
Factors that affect Customer Value
Customer Values on a product or service are greatly influenced by various factors, both in terms of target consumers and your side as entrepreneurs. The following are some of these factors:
- Product or service function
- Unique Selling Point
- Price
- Quality
- Product resources
- Branding and marketing
- Target customer preferences
- Customer target service level
- Target customer experience in using the same product or service
At some points above, there are three factors that fully come directly from your consumer target. That means, all three of these factors cannot control, such as consumer target preferences and their experiences in using your product.
Therefore, in penetrating the industry in which intense competition is not easy to do. In general, consumers also have their own brand preferences. Therefore, a powerful strategy is needed in winning your consumer’s heart. One way is to do market segmentation.
Try to do research so you can understand the various needs of consumers who are still not served by your competitors. From the results of the research you have made, then the value will be created by a certain consumer group.
However, don’t forget to keep measuring the value you created. So, how do you measure it?
How to Measure Customer Value
There are several ways that can be used to measure Customer Values on a product or service. Of the many ways, the simplest and easy formula is “Customer Value = Benefits – Price”.
This formula interprets that the greater the benefits will be achieved by the same price, then the large level of the customer value will be.
So, you don’t have to do a price war with a low profit rate if you are still able to offer better value with your prospective customers.
For example, if you want to coincide with the brand y, and the brand turns out to have been famous for a long time in the industrial field. If all the specifications and benefits of the product you make exactly the same with the brand y, the choice to win with the brand is through price competition. However, this method is very difficult for you to do.
What’s more, Brand Y has also pocketed a good reputation in the eyes of customers and your customers.
So, what can you do to be able to compete with the brand y? Full strategy is to increase unique selling points for your product.
If your product is unique, then you will be more free in determining the appropriate price for the customer value.
5 Tips to Develop Customer Value
1. Help Target Consumers Understand Your Value
The value of the product you offer for consumers is definitely created with all the resources you already have, a gap in market competition, and also the needs of consumers. Therefore, it is very important for you to explain the value of more products in your prospective customers.
If you don’t do this point, your target consumers cannot know more value for your product or service.
2. Give the best service
Without quality services, of course your best marketing products and strategies will not be complete. For this reason, show your customers that at the price you have offered, they can get maximum profits.
For example, if you sell online, try giving a delivery time estimation and make sure your item doesn’t come late. On the other hand, make sure you can package the product neatly and safely.
3. Ask for input from the customer
Who know about consumer needs is consumers themselves, not entrepreneurs. By the variety, try asking for input from some of your best customers. You can use this input as consideration in producing goods or services that can be better. So, you will also be able to increase the customer value.
4. Create Unique Selling PointBar before competing competitors
Your business competitors will not relax when you try to offer a new breakthrough that is in your field. They will definitely always look for a narrow gap in order to win the trading competition with you.
So try to think about the idea that can be developed again to become a new Unique Selling point and Value, before you are sorry by competitors. To start, you might be able to request advice from customers.
5. Do branding
Customer Value will always run side by side with branding. With a strong brand, then customers will be happy to offer your products or services to the people around it. This will also create consumer perceptions of the brand that you have built.
For this reason, try to start making a branding by creating a certain guideline as a benchmark. Also make sure that all your employees can use the brand standard in order to maintain the value of the brand consistency.
Come on, add the customer by developing your customer value
By understanding and recognizing Customer Values, you can get benefits that are in accordance with consumer needs and appropriate prices. By recognizing Customer Values will also make it easier for you to win the heart with consumers, especially in the industry that is currently getting tougher.
But on the other hand, you also have to have expertise in marketing your product. In addition, you must also have invoices, various financial statements, and stock products that are already neatly arranged.
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