The Key To Loyal Customers – Products and Services With VALUE!

Stand on Price Alone and You Will Fail

What is value? Simply put; it’s whatever your customers think it is. More specifically; it’s convenience; service; quality; variety; knowledge; after-sale follow-up; and price. Value is the human factor. It’s what you can add to your product or service that will draw customers in and keep them coming back. Let me give you an example of what value isn’t. I recently returned from a flight to discover that my car; which I had left at the airport; had a flat tire. I called a servicing tire dealer and explained that I wanted him to pick up my car; install a new set of tires; and deliver the car to my home no later than 8 a.m. the next day.

After a few seconds of silence; he said; “We don’t do that.”
“You don’t do what?” I asked.
“We don’t pick up cars; and we don’t deliver them;” he said. “Are you a member of Triple A?”
“Yes;” I responded.
“Call Triple A and have them bring us the car;” he said. “Then we’ll call you when it’s finished; and you can pick it up.”

I don’t think this tire dealer understood me. I hadn’t even asked the price of the tires. I wasn’t buying the tires; I was buying the service.
This kind of non-service will drive customers away and into the hands of mass merchandisers from whom; I might add; I can buy tires very similar to those servicing dealers sell.

The man I had dealt with has probably been glaring at full-page tire ads run by mass merchandisers while he is going out of business because he thinks he can’t compete. He doesn’t realize that his business is not “selling tires.” His business is “service” and what he does for the customer while he sells the tires. What makes your products or services worth the difference in price to the consumer? The answer should be value. If you make price stand alone, you will fail- Stress the difference between price and value. It is critical that you define the value of your product or service to the customer and be as specific as possible. What is the value she receives for the money she pays? Do you deliver? Do you provide the freshest merchandise? Do you provide technical assistance by well-trained people?

You can’t beat the price merchant by lowering prices. You can only win by redefining the value you bring to the customer.

Factoid: Value is more important than price.

Tactoids:

1. Convenience: Do whatever you can to make it easy for the customer to do business with you. Take orders by FAX; conduct business at the customer’s location, offer a 24-hour phone service, deliver the product.

2. Quality: Make sure your product or service stands up against the competition.

3. Service: One of the most effective ways to differentiate yourself from your competitors is with responsive service that’s even better than customers expect.

4. Variety: Offer customers a diverse selection of products of services, then let them select those that best suit their needs.

5. Knowledge: The more you know what others need, the more valuable you are. Identify yourself as a specialist. Offer seminars or write a book. Know your products or services better than anyone else.

6. After-sale follow-up: Do something so unique after a customer transaction that it immediately identifies you as a premium value merchant. A grocery store chain assigns names of regular customers to each of its cashiers, who then call to thank them for their business. The Mayo Clinic encourages its physicians to spend at least one hour with each patient during an exit interview to prepare the patient to return home.

 

Thomas Winninger – 612 896 1900 – Thomas@winninger.com – www.winninger.com