In the previous blogs, we mention competitive advantage and how the main idea is to create value for the customer. Today I want to expand a bit further on creating value and retaining customers.
Creating value is essential for a successful business. If customers don’t believe that your product is valuable, then why should they invest money into it? It is clear that consumers will buy your product if your consumer surplus is positive, meaning if the customer’s perceived value is greater than or equal to the market price.
First of all, it is important to see what your customers already like about your product. Why do they already purchase it? Conversely, ask yourself why a customer would not buy your product. Is it possible that one of your competitors offers something different? Better? More valuable?
From here you could already see gaps and possibilities in increasing value.
Ask yourself if you are actually targeting all potential markets. If you are not, then see if it possible to do so. For example: Are there people that are interested in your product but find it out of their budget? Is it possible to cater to their wants while at the same time still making profits?
In addition, surprise your customers from time to time with little gifts that they may not be expecting. These little gestures can go a long way to creating customer loyalty and creating a special bond between you and the customer that other brands may not offer.
Lastly, ask your customers what they want. Create questionnaires and let your customer help you help them! However, don’t do everything your customers tell you. They don’t know what’s best for your business. Use it as an insight as to how to please them and think of your own ways to give it to them (and more importantly decide if you should or not).
I will leave you with a quote from Henry Ford: “If I had asked people what they wanted, they would have said faster horses.”