Add customer value every day
Adding value to the customer is simple, but is it? In simple terms, adding customer value means giving the customer a little more than they expect. It’s about innovation. It’s about creativity. In most of Nigeria, the average túman (roast meat street vendor) knows this: every time you buy a tú (roast beef), the túman cuts a piece of meat for you to taste before asking you how much you need. do you want buy. It’s called rockrose, Hausa for extra. How many times do you get a taste of ice cream, or meatloaf, or pizza at fast food? The chances are zero. But why not? Now rockrose can be a polite smile, increased service, not charging for the carry bag, the list is endless.
What is the cost of a small carry bag? It costs little or nothing relative to the upside potential to generate goodwill. So why didn’t banks give them away freely until the late 1990s? I remember a vivid experience years ago when a bank paid me around $3,500, in the equivalent of three hundred denominations. I’ve never needed a carry bag at a bank before, but this time I was forced to ask for one. I was surprised when the cashier on the other side of the counter told me that he couldn’t have one, because as he put it, “the bank doesn’t give out shopping bags.” He was stuck with more than 1100 pieces of bills of three hundred denominations. To do? I reasoned with the unlucky cashier that if I had gone to a supermarket, they would have put my purchases in a carry bag even if I only spent a dollar; How was it that I was not entitled to a $3,500 shipping bag that I withdrew from the bank and for which the bank earned a nice commission on the billing? Fortunately, the cashier responded and quickly packed a bag for me.
Banks now give out bags for free, but I wonder why it hasn’t always been that way. Given that the average price of a carrier bag is less than a penny, and the goodwill such a gesture can generate is unquantifiable, why didn’t banks do it all along? Also, you may ask, why don’t banks credit their customers $10 for every $10,000 they deposit into their account, to build goodwill and more deposits? Why are banks reluctant to pay customers interest on checking accounts since it may not necessarily reduce their profits? You need millions of these token acts of innovation that cost you literally nothing to unleash the goodwill of your customers. And how many organizations are doing this? Less than one in a thousand I know. Why? It goes against policy.
In his Thriving On Chaos, Tom Peters lamented the nonchalant attitude of nearly all corporate America toward innovation when he thundered, “The reality is that millions, literally an unlimited number, of opportunities for innovation and improvement lie within any given factory, distribution, store or operations”. center.” Tom estimated that such opportunities for improvement could be multiplied to the magnitude of millions if the entire value chain, including customers, suppliers, factory and distribution center, were involved.
“Value,” Buzzel and Gale noted in their “Profit Impact of Marketing Strategies Study” (PIMS), “is the relationship between quality and price.” conversely, the inverse relationship between these parameters. If a customer gets higher value at an acceptable price, they argued, the customer gets better value while, on the other hand, a customer who gets low quality at a high price gets worse value. In the market economy, it is the customer who determines what constitutes good or low quality, high or low price, the authors conclude, “from whom he buys and at what price determines who wins or loses.”
Norman R. Augustine, then president and chief operating officer of Martin Marietta Corporation, wrote in Executive Excellence magazine that the biggest obstacle to high quality and productivity in business is uncontrollable bureaucracy. In his opinion, no external job or regulation should go unnoticed in the criteria of what he called “added value, the ‘where’s the meat?’ Test”. He then concluded that value can be both tangible and intangible. As an example of intangible quality, Norman cited “quality of work life.”
Adding value to the customer Every day means, in a sense, that you conduct a value analysis of all the work you do for the customer. All work that adds value to the customer is retained, and all work that does not add value to the customer is not retained. In another sense, it means looking at all the moments of truth and thinking of innovative ways to creatively turn those moments into high-impact touches to further cement the customer relationship. Take the case of restaurants. The average “upper class” restaurant serves bottled water for which they charge ten times the price of bottled water in stores. Now, in one particular country that I know of, not all customers care about bottled water, either because of the high price or because at one point, especially in the early 90’s, most of the bottled water in this country it was fake The fraudsters simply filled the bottles with tap water and sealed them. However, despite the obvious concerns, no restaurant would serve boiled filtered water that they individually guaranteed. Is this nuclear science?