Customer Value Discovery
Why is it important to discover what customers truly value?
Spending large amounts of marketing and sales dollars to capture customers only to lose them again, is a very inefficient and un-profitable way to run a business.
Losing customers can be fatal to a business and the impact is far greater than the costs to acquire them in the first place. This is especially true within electronic environments where personal connections/relationships are not usually built that could protect the business.
Companies fail to deliver the value that customers are really after, which leads to problems retaining customers for the long haul.
Companies spend large budgets on market research so you would expect organisations to be delivering the value customers want? Unfortunately most research methodologies fail to discover what customers are really after! Also, the execution of the research findings is often foiled through lack of focus and a lack of understanding of the priorities that will deliver greater value to customers.
Use of Customer Discovery Methodologies, that also generate behaviour drivers, will give you the focus that will deliver the greatest amount of value to the customer for the amount of effort.
Customer Discovery produces a set of “specifications” for excellence agreed to by customers, describing the experience they want to buy. It differs from conventional approaches in several ways:
- The methods don’t make any assumptions of what we think customers are after. Companies discover, often for the very first time, what they think is really important to the customer and in priority order.
- It turns out that these value factors also drive customer behaviour
- Some methods (particularly the Enzyme approach) also engages the staff in the discovery process that then ensures a higher level of commitment and enthusiasm and ultimately results in higher quality customer experiences.
There are huge benefits for both customer and the company. Improved market interest levels result because you are hitting the customer’s real hot buttons that have been discovered. This also results in:
- Higher conversion levels because you are delivering the value that is particularly important to the customer
- Decreased churn which is VERY costly
- Increased bottom line profitability and a more sustainable business
- Much happier customers
- Increased word of mouth market multiplier ( = free marketing and lower customer acquisition costs) …all at the same time.
What do you think? Which companies have you recently come across who’re investing in discovering what customers truly value?
Brett Haley
Enzyme
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