Unit 2:Deliver Customer Service in a Business Environment
Task 1.1: Produce a report on explaining what ‘added value’ means in terms of customer service
Added value is the difference between the price of a product or service and the cost of producing it (Andresen, 2016). Added value is an important tactic that can be used by small businesses to acquire and retain customers, increase brand awareness, and differentiate one’s place in the marketplace.
Companies are constantly challenged to find a way to add value to justify their pricing to a more discerning market. On the other hand, companies are learning that consumers are less focused on the product, and more focused on what the product will do for them. Discovering what customers of an organization value is critical to how the business organization packages, produces, markets, and delivers its products.
“Adding value = the difference between the price of the finished product/service and the cost of the inputs involved in making it”. On the other hand, the term “added value” is similar to an increase in value which a business organization makes by taking the process of production (Vertical Response, 2017). It is very easy to consider a number of examples of how the process of production can add value.
There are different ways to create added value that can be easily implemented into the business plan:
- Always consider customers’ perspective
The art of creating added value starts with the ability to see the business through the eyes of the customers. Consider what’s important to the business’s target market and how the product or service will benefit them (Vertical Response, 2017). Many businesses miss the boat by focusing on features instead of benefits. By shifting the business’s focus to providing content that focuses on the customers’ needs that can start helping and stop selling. Creating customer personas is helpful to provide insights about your current and future customers.
- Consistently work to improve customer satisfaction
Although the debate over whether the customer is always right or not, lack of customer satisfaction is a sure-fire way to keep people from coming back (Vertical Response, 2017). Soliciting honest feedback through surveys on a regular basis allows businesses to keep a finger on the pulse of the customers’ needs in their journey with the business and is also an opportunity to monitor the brand’s identity in the marketplace.
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- Implement marketing models into business strategy
As businesses are searching for ways to create added value, the use of popular marketing models can help business strategy take shape. For small and medium businesses, the Four Cs model, Brand Essence Wheel, and SWOT Analysis tool will help to develop the brand’s value statement, define unique selling point, and even forecast customer demands based on market trends.
- Develop a memorable customer experience
Businesses with unforgettable customer experiences are more likely to benefit from word-of-mouth referrals, positive online reviews, and higher retention rates. When getting started, businesses will need to consider all touchpoints of the business, from initial lead capture to post-purchase communication, and how to properly maximize the added value for the customer throughout the process (Vertical Response, 2017). Building a customer experience also allows businesses to develop relationships with the customers so organizations can connect on levels that go past simply getting the sale.
Task 1.2: Recognize the opportunities to add value to a customer interaction
Added value is the significant method that can be applied by the business organizations to retain customers, develop a brand image and brand awareness (Egan, 2016). There are a number of opportunities to add value to customer interaction which are given below:
Adding value through personalization
All customers want to feel special. They want brands to notice them, especially if they’ve long been patrons. They look for customer support interactions that go beyond mere problem-solving sessions, preferring meaningful and authentic conversations instead.
Meaningful interactions, however, are just a tiny component of personalized customer experience. In business, what personalization really means is using consumer data to create customer-centric marketing and support strategies (Knop, 2016). That would entail designing customer policies that aim to make buyers’ journeys trouble-free, delightful, and memorable.
Listening to the voice of the customer
The real key to adding value to the customers’ journey is to understand their needs. Giving them a platform to voice out their concerns and opinions can be a good way to truly understand them. Businesses can only determine how best to improve the products and services if businesses have a complete view of the customer (Knop, 2016). It’s also necessary to put together the right tools to gather information about them and analyze consumer insights………………….