Added Value as a Marketing Strategy
Added-value marketing is a process that turns a commodity-based product or service into a product differentiated from competitors. Benefits of an effective added-value marketing program include improved profitability, more effective customer acquisition and longer customer retention.
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How to Add Value
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The concept of added value includes "going the extra mile" to satisfy customer needs. As a first step in determining where and how to add customer service value, identify moments of truth in your customers' experience. A moment of truth is an instance when a customer interacts with your company. Examine each of those instances and determine what you can do to improve the customer service experience and add value. For example, a textile manufacturer got frequent calls every day from customers to inquire about the status of their orders. The manufacturer added value by providing customers with a daily report of order status with projected delivery dates.
There are many ways to add value, such as adding features and benefits to your offering, involving your customers in product design, enhancing product quality, providing financial incentives to customers for buying more of your products and making sure you fully address customer problems.
Unique Selling Proposition
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Establish a unique selling proposition (USP) for your company adding value in the minds of your customers. A unique selling proposition differentiates you from other companies and gives potential customers one or more reasons why they should do business with you.
Make sure your USP is delivered consistently throughout your organization. For example, if part of your USP promises delivery in 24 hours, inform the affected department such as sales, manufacturing and finance of this commitment.
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Communications
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Besides adding value, a company should leverage the value it adds by promoting it through publicity and advertising. The textile company mentioned in Section 1 placed advertisements in all major trade publications promoting its special service it called Delivery Dispatch.
Customer Feedback
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The effectiveness of a customer value program is the customer's perception of that value. If the customer does not realize or agree that added value is provided, efforts to create value are not useful. Assess customer knowledge of value being added and survey customers to obtain their feedback and specific ideas for how additional value can be added. Use focus groups to obtain customer feedback. A focus group is a research method in which people are queried about their opinions, perceptions and attitudes about a company and its products and services.
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