Creating Customer Value
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The purpose of business is to create and retain a customer.
Much has been written about customer orientation, customer relationship management (CRM), Customer Lifetime Value (CLV) metrics, Customer Centric organization models, customer retention, customer care...add any high sounding word with 'customer' preceding or succeeding that word and you have a new model, a new theory. Headline hitting books, celebrity author seminars and training till another theory comes along.
And we see the poor customer is still the most dissatisfied lot (that includes all of us specialists too, as customers).
What a manufacturer or service provider often thinks as a market or value proposition, customers respond in a diametrically different fashion. Why does it happen?
While business thinks in terms of products and derived values, customer is looking at satisfaction. The key question is whether all the strategy, product features, add ons and value creation lead to ultimate customer satisfaction.
Now this may seem a little contradictory. To illustrate it better let's take the example of Cell phone services. Companies are rolling out a new product every fortnight offering more value, in their perspective.
Then the point is why does the customer keep switching over to different service providers and products or packages so often, if the products are offering value.
The key here is more value propositions are being rolled out without looking at the very basic. Whether the value proposed gives satisfaction to the customers. If not it is not valuable.
The customer is buying satisfaction. Highest value is derived when the customer is fully satisfied with his purchase.
Next: Some common myths... >>
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