The definition of customer value can be summed up with three questions you should be asking yourself…
Before I do that, half your battle is won when answer this question first:
What does your customer CONSIDER value?
Before you stop reading and click away – (because it’s so simple)
Let me ask you this…
Have you asked your customers what they perceive as value?
And I’m talking besides “best price”…
Whether you have or not, your job is not done in my opinion…
Because you want to be known as the expert, am I right?
So what do you think is going to make your customer see you as that expert?
Your “lowest” price?
Your “market standard” promise?
I doubt it.
Here’s what will:
When you can explain the problem / solution BETTER than your customer can.
Write that down. Because it's part of the definition of customer value.
And the only way you can do that is by knowing EXACTLY who your customer is…
(read: your target niche – not “everybody”)
When I’m doing this exercise with a coaching client, believe me, it’s not easy to answer if you’ve never dug deep enough…
So don’t feel like you’re alone if you can’t answer the questions right away.
Let me share a case study example of my definition of customer value:
I asked a realtor client “what does your customer consider value?”
“Highest sale price” & “Lowest commission” she told me.
“is there anything else?” I asked
“Nope – that’s it – I’m competing with all the other agents in the area for the listing.”
I asked “WHO is this client? Can you tell me a bit about them?”
It wasn’t even 5 minutes later of specific direct questions that I helped her discover who her client REALLY was.
For simplicity sake here, I knew her client:
- was a young couple (early 30s) moving because they just had another baby.
- already had a toddler running around.
- wanted to up-size for the normal stuff – more room – more bedrooms etc.
Anyhoo – I said “of COURSE they want the most for their home, and the best commission…ANYONE can sit at the kitchen table and ‘sell’ that”. “But are they moving BECAUSE they just want to make money on a real estate transaction?”
I continued…“I know they don't want to LOSE money, but besides that, now that you know their situation, what can YOU help them achieve, avoid & protect?”
I helped her along by with a guided question:
“Don’t you think it would be VALUABLE for any showings to be scheduled AT LEAST 2 – 3 hours ahead of time?”
Here’s the madness to my thinking…
If someone has a newborn and JUST got them down to sleep, the LAST thing they want to do is clean up and disturb the infant because they have to scoot out of the house for a quick showing when the agent calls with “I’ve a couple interested in the property…we’ll be there in 20 minutes.”
Is that “protecting” the client?
I dunno about you – but a VALUE add in this situation is that my realtor client promises to never call in a panic showing like that.
Now, I also understand it takes two to tango.
The client MUST understand they could potentially LOSE a “hot” buyer if they’re unwilling to accommodate these quick showings…
However, even if they do not go for this ‘value’ add – don’t you agree that the realtor bringing this up has positioned themselves as an expert and shows compassion and understanding for their customer more than anyone else?
Read: they understand the problem BETTER than their customer.
This is just a QUICK example of looking at your business and asking these three important questions:
1. What do I help people Achieve?
2. What do I help people Avoid?
3. What do I help people Protect?
In my mind, this is the definition of customer value