Customer Value Models Accelerate Ongoing Success

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Customer Value Models Accelerate Ongoing Success
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• While the terms price and value are many times
  used interchangeably, they are not the same.
  Recently, we asked the question, what should you
  know about your customers? We shared that
  hyper-personalization designed by using a
  combination of historic and real-time data helps
  you provide better personalized recommendations
  with higher conversion rates. This provides your
  customers with added-value and leverages the
  fundamental ideas of Customer Value Models (CVM).

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Understanding value versus price.

• Imagine traveling across the country to give a
  live seminar to a large group of people after
  spending two months developing your presentation.
  If your 1,000 laptop housed your presentation,
  and was lost at the airport how much would it
  cost to replace?
• Who cares, right? You can replace the laptop with
  a new one, but not the value of having your
  presentation when you need it most. The event
  could be canceled, and all the related revenue
  might be lost. Its possible that the venue would
  blacklist your company from having future events
  at their location. The replacement cost of your
  laptop has nothing to do with its value in this
  scenario. Customer Value is defined as Value
  Benefits Price.

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Using CVM to accelerate success.

• Companies can use CVM in a variety of ways.
  However, it does not replace predictive and
  prescriptive analytics nor hyper-personalization.
  Rather, it supplements these tactics. This is
  where success acceleration really happens. Its
  important to consider that customers have price
  caps a limit on total price they are able or
  willing to pay, despite total value. Here are two
  ways that businesses are effectively using CVM to
  accelerate success.

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1. Improved Development. Through CVM, businesses are
   able to better determine which potential new
   products and services provide the most value to
   their customers. When we focus on benefits,
   rather than features and functions, value
   increases. This allows a business to raise prices
   to increase revenue or maintain price with the
   higher value to increase customer loyalty. Both
   approaches can be used.

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• 2. Sales Growth. Two ways to grow sales is
  through motivation and validation. Motivation
  turns leads into customers. Give them a reason to
  do business with you by giving them the (value)
  offer-they-cant-refuse. Use validation to build
  loyalty within your current customer base. When
  you validate your customers decision to do
  business with you by showing that your value is
  more than your price, your business will grow.
  Youll see increase in lifetime customer value,
  average-order-value, and improve overall customer
  experience.

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Points of Parity and Points of Difference

• According to the Harvard Business Review,
  stressing as a point of parity what customers
  may mistakenly presume to be a point of
  difference favoring a competitors offering can
  be one of the most important parts of
  constructing an effective value proposition.
• Some functions and features of a product or
  service are just standard within the industry
  theyre expected. Customers may not be able to
  distinguish between parity and difference, then
  go with a competitors offer if your messaging
  isnt convincing. Know more read our full blog
  here
• https//www.groupfio.com/customer-value-models-acc
  elerate-ongoing-success/