Since the advent of digital technologies, traditional marketing efforts and critiques have become outdated – as it turns out to be more expensive and challenging to get results. Being a business owner, if you are exerting traditional offline methods for your business campaign, then you are on the wrong track – Stop now!
Here are some few reasons – why you should switch to online promotion tactics, and most importantly, how to create customer value to improve your customers’ experience.
Initiating With Online Marketing
Reasons to Focus on Online Marketing
Stats show that:
- 89% customers usually prefer search engine for making a purchase decision.
- 79% of customers rely on online reviews and feedbacks as much as a personal recommendation.
- 71% consumers opt for social media referrals before purchasing.
Conclusion: Search engine, online feedback, online reviews etc. is significantly important, influencing customer decision. Understanding your audience behavior is critical for the success of your marketing efforts.
Note: Prospective customers will turn to your competitors if they are unable to find you online!
Tips on how to create customer value for your business
The concept of how to create customer value is vital, especially for small businesses. With these concepts, you can easily create customer value model for driving growth to your business.
Understand What Drives Value for Your Customers
Conversate with them, analyze their behavior and observe their actions as well as reactions. These factors are valuable to apprehend information about your customers. What is important to them and what opportunities you have to help them.
Understand Your Value Proposition
Customer Value equation depends on is the perception of what a product or service is worth to a Customer versus the possible alternatives.
The value customers receive is equivalent to the benefit of a product or service minus its costs. What value your product or service create for them? How much it cost them?
In term of price plus any ancillary costs of ownership or usage (e.g. how much time consumers are devoting to purchase your product or services?)
Take Customer Advice (and Credit Them for It)
Another great strategy for creating value for customers is to constantly improve. Rather than opting for the numbers, or your gut, figure out what your customers want next. Generate a poll, including few ideas – you’ve been thinking and share it via blogs, social media accounts, and emails.
Allow customers to drop suggestions you didn’t list and offer incentives for participating in the poll. Even if you offer chances to win something like gift cars or early access to the new feature, it`ll help a lot in increasing customers who actually participate.
If you consider making a change on the basis of consumer’s feedback, offer them credit for sharing a great idea. Promote these offers on marketing channels that presenting appreciation to attract customers.
Identify the Customers and Segments to Create More Value Relative to Competitors
Different customers have different perceptions about your product or services as compared to your competitors. Based on geographic proximity, for example, or a product attribute that one segment may find particularly attractive.
Create a win-win price
Set up a cost that ensures – customers are receiving value to maximize your “take.” Gratified consumers that perceive your offering valuable are willing to pay the price. While unsatisfied customers tend to leave, even at a low price. With the help of “cost-plus” pricing (i.e., pricing at some fixed multiple of product costs) often leads to giving away margin unnecessarily to some customers while losing incremental profits from others.
Focus Investments on Your Most Valuable Customers
Match your sales force structure, marketing dollars, and R&D investments to your business life cycle. So that you can best serve your customers to yield the greatest value in return. Additionally, allocate your growth capital toward new products and solutions. In order to serve your potential customers better and attract more customers that are similar to your best customers.
When you upsurge your company’s customer lifetime value, you`re impacting customer loyalty, general profitability, and marketing allowance in one fell swoop. While you don’t need to stop pursuing potential customers altogether, remember to focus on building up the customers who already like you. Apply the above tips to your business strategies on how to create customer value and feel the positive effects ripple throughout your company.