Much has been said of creating value for clients. I trained at a company that focused on values based selling. This company does not monopolize the idea that focusing on value is a key differentiator in winning the deal. Competition is fierce and will only get more fierce moving forward. With the economy tightening daily, it is important for businesses to determine the value they bring to their clients and devolop sound methods for articulating this value. Displaying value is not enough as clients also expect you to deliver on that value proposition.
Commoditization of Everything:
Most businesses are in industries that are close to commoditized, even if they don’t want to admit it. A commodity is a good or service for which there is demand, but which is supplied without qualitative differentiation: it is the same no matter who produces it. (Wikipedia Definition). I own and insurance agency. The industry is commoditized. For instance, all auto insurance companies can deliver and auto insurance policy. Even the social media industry is close to being commoditized. Anyone can teach a potential client how to set up a blog and that you should be on Twitter and Facebook.
Define The Value You Bring:
If everything is commoditized (and some could argue that this is not the case), than how can a company bring value to a potential client. In my insurance business we focus on a couple of areas such as tenacious customer service, education and our independence. Tenacity in the sense that we will be pursue all customer service issues and matters until we resolve them for our clients. We also educate our customers through the blog on our website at www.spinstx.com and through my Insurance blog at www.keeptexasinsured.com. We are an independent agency that represents several companies, so we will always be able to shop several companies for our clients to get the right coverage at the best rates. This is how we differentiate our business from the competition. This is the value we bring.
What is the value that you bring to your potential clients? Have you written them out lately? Are you sure that you can bring the value that you have illustrated on the paper?
Articulate The Value You Bring:
The ability to deliver value to your clients will not matter if you can not articulate the value you can bring. Sounds a little confusing, I’m sure, but it is important to be able to communicate the value you can bring to your clients. How do you know that iPhones can deliver value? You have seen and hear the commercials, “There’s and app for that.” Those commercials are well done and articulate the value they can bring (think of the apps you have seen, think of how you would like to use your phone . . . well, there’s an app for that.) Most likely you know Geico’s value proposition. Their slogan says it all, “So easy that a caveman can do it” and “15 minutes or less can save you . . .” Ease of use and reducing costs. That is their value proposition and they have articulated it well.
Delivering The Value You Bring:
Now that you have developed your value proposition and articulated to your clients the value you bring, the next step is delivery. Without this step, you will lose your client and your reputation and your business will begin fade into the past. This goes without saying, but it is the most important step. My wife bought and iPhone recently and it has delivered. The value proposition that was articulated has been met. We feel that Apple has delivered on its value proposition. Make sure you are delivering on the value you have promised your clients. Follow up with them. Be prepared to correct any issues that may arise and once they are solved, ask for referrals.
Creating value for clients is what every business must do in order to survive. Growing businesses will focus their efforts on creating value for their clients, but will also make sure that they can articulate the value they can bring. As goods and services continue to become commodities, this will become more essential to business that will grow in the future.
CWH
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