Your business can only generate customers if they buy your products and services.
But to get there, they should want to purchase them in the first place.
In other words: You need to give your target audience a reason to become your customers.
This is precisely what we’re going to talk about in this article—customer value. Customer value refers to how much a product is worth to customers.
Even if the item comes at a high price and is not of the greatest quality, a product can have high customer value. In most cases, its worth is determined by how it can solve customers' problems.
Now that you know what customer value is, the next section discusses why it’s important to identify it in your product. You’ll then find ways to create it for your product.
From here, you can make your product more enticing to your target market, resulting in higher sales and conversions.
Customer value enables you to maintain long-term relationships with customers. Your product's ability to continuously provide value over time can turn fair-weather customers into loyal, life-long brand advocates.
This is more important now than ever due to the volume of products and alternatives available to your target audience in the market. A single, unintentional mistake your brand makes can cause customers to leave your brand and try out others.
To help you determine your product's customer value, you must send a survey to your customers. It should ask customers qualitative questions that gauge your product's value and usefulness to them.
The survey should also ask quantitative questions, such as how satisfied they are with your product, on a scale of 0-5 (5 being the highest).
These product survey questions help you gather customer feedback and provide insights on how to improve your product.
If you're launching your very first product, the first thing you must do is create customer value for it. Below are the steps you must follow:
A good product has a robust value proposition at its very core. A value proposition states what your product is about, the problems it solves, and why customers should purchase it.
To help develop your product's value proposition, keep the following in mind:
You can’t paint over your audience using one brush. You must treat each segment of your audience differently.
Concerning customer value, you must communicate how the product can benefit each of your customer groups. This enables them to fully understand your product's value, resulting in them buying it.
To do this, you must identify the demographics and psychographics of each of your segments. By knowing their age groups, income brackets, similarities in interests, and other attributes, you can fashion your message by tapping into their identity.
This allows your product to resonate with your audience’s needs, wants, and desires, thus increasing its customer value in the process.
It is natural for people to judge a product based solely on its price. However, lower prices as a value proposition is NOT the solution to this problem.
For one, there will always be brands willing to bring down prices for the same product. And by continuously lowering your prices, you could bring down the value of your product.
Worse, your business will lose money in the process.
Therefore, instead of finding the lowest price for your product, find the best one. Take into account the costs of the resources for creating your products en masse and the amount you must meet with every sale to ensure profitability.
Also, consider other factors that go into creating the product and not just its perceived value. For example, when it comes to ecommerce suppliers, local is always more expensive than overseas. From here, use the price to dictate how you communicate its value to your prospects.
For expensive products, position them as premium, high-end alternatives to the lower-tier products in the market. On the other hand, you can position lower-priced products as more affordable alternatives.
Your interaction with your customers will depend on your customer engagement maturity index. The lower it is, the more you must work on creating positive experiences with them regarding your brand and products.
If that’s the case, fix it!
Produce as much help and value towards customers regardless of their requests. Inform your support team to expect angry customers from time to time, and the only way to soothe them is by providing the cure to what ails them.
Your loyal customers will continue to advocate for your product through thick and thin because they recognize the value it brings to their lives. Foster a strong relationship with these customers.
Reward their advocacy by granting them points through your loyalty program. Or give them a commission for every successful customer they refer to your brand through your affiliate program.
To help people promote your product, you can give them access to an affiliate dashboard and determine which KPIs to track. The insights they'll get from the dashboard let them improve their selling or referral approach to convert better.
For those who want to grow their knowledge about your product, customer education is in order. Invite them to your webinars and provide members access to your knowledge base to provide them with additional use cases for your product. This way, they can help you promote your product to other people much better.
Providing your most valuable customers a platform to communicate their love for your product lets others see its value much clearer.
As you can see, cultivating your product’s customer value will determine your business’ success.
Build it properly following the steps above, and you can communicate its worth to your target audience. From here, expect your sales and revenue to skyrocket!
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