Customer Value: Are your customers willing to pay maximum price?
"We put a lot of effort into building a relationship with (the client) and then they dump us as quick as look at us."
Have you ever heard yourself say something similar in relation to your own business? Maybe you have heard other business owners say it? The behaviour described in the above quote indicates the client is undervaluing the supplier.
Business owners who experience this type of relationship tend to accept it as symptomatic of the industry they work in. It's a result of "competition", or "economic downturn", or "the big players crushing the smaller ones". However, this is rarely the case. Nor is it a lack of quality, commitment, capability or professionalism on behalf of the supplier. In most cases we have seen, undervaluing is the result of a Relationship Mismatch.
How the business is positioned and what the client values are two different things. This is good news. It means business owners can turn things around by getting the relationship dynamics right. How is this relevant to you? There may be potential in your business that is not being realised.
EWO Consulting provides the objectivity you need to better understand the true value you are delivering to clients and show you how to communicate that effectively. Complete the Consulting Enquiry Form on this website to have an obligation free chat about how we can help.
Do this quick test:
1. Which of the following do you think is most important to your clients when it comes to the products & services you provide?
a. Understanding / empathy / nurturing / caring
b. Getting results, quickly
c. Always having something new and different to offer
d. Strictly adhering to procedures / protocols / quality control
2. When talking with potential clients, how are you most likely to describe the business? ..."We are a small team and therefore able to?
a. "offer a very personal touch to our service"
b. "get things done quicker because there is less red tape and hierarchy to deal with"
c. "be more innovative and flexible, change is second nature for us"
d. "more readily ensure everyone in our team is adhering to procedures".
The message you are giving out to your clients should speak directly to what is most important to them. If your answer in Q1 was 'a' then your answer in Q2 should be 'a' as well. Anything that is not directly delivering to that need is likely to be undervalued and in some cases actually be seen as a hindrance. It's like you are throwing darts and missing the bullseye. You will score higher if you throw a few darts that hit the target rather than bombarding the target from every possible angle.
Think about this for a while and see what you can learn about the way you position yourself with clients.
- Do you try to be all things to all people?
Which option is really going to excite your clients the most; a,b,c or d?
- Which options do your competitors cover already?
- Which one is going to give you the greatest differentiation?
Get the match right between your positioning and what your clients really value and it will be a match made in heaven. It will be the elusive win: win for all involved, which is the most powerful source of client loyalty available in business.
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