Day 4 = Identify 5 Ways to Create More Value

Customers take their hard earned money and give it to companies (hopefully yours) - this important "moment of truth" may be the most significant factor in the success of your business.

Your customers only engage in a transaction with you when they have an expectation that value is coming back to them. They give you their money; you give them value.

Value can be defined as what the customer perceives they get out of the transaction divided by what they feel they sacrificed for it. In other words they judge what they got in relation to they gave up to get it.

Growing companies look for ways to increase value for their customers. The customers' perception of value is hugely important in their satisfaction. If you create great value for customers, they come back and tell their friends.

Notice, because of the ratio, value can go up in by either (a) giving the customer more, or (b) reducing their sacrifice to participate in the transaction. Or a combination of both.

Assume lowering your prices is NOT one of the options, brainstorm in your planning document 5 ways you could produce more value for your customers.

More information on this can be found in the second pillar in CUSTOMER PILLARS - Maximize value incrementally.



Need to access previous lessons or look ahead? Click here.

Let us know if you have any questions or challenges. Contact us at training@FAMEE.org or by phone at 785-865-7390.