Task1.1 produce a report on explaining what ‘added value’ means in terms of customer service
Adding value is a key concept in business studies. Added value is defined as Added value the difference between the price of the finished product/service and the cost of the inputs involved in making it. Thus, the added value is the increase in value that a business creates by undertaking the production process. It is quite easy to think of some examples of how a production process can add value (Roth, 2016).
Consider the examples of new cars rolling down the production line being assembled by robots. The final, completed and shiny new car that comes off the production line has a value (price) that is more than the cost of the sum of the parts (Egan, 2016). Value has been added. Added value is determined by the price that a customer pays. Alternatively, imagine a celebrity chef preparing a meal at his luxury restaurant. Once the cooking is complete, the meal is being served and sold for a high price, substantially more than the cost of buying the ingredients. Value has been added.
As Egan (2016) notes, businesses can add value in several ways which are described below:
Providing better service – good personal service can make a difference between a high price and a medium one
Creating a brand – a reputation for quality, value, etc. that customers are prepared to pay for. Nike trainers sell for much more than Adidas though the production costs are pretty similar (Adams, 2014).
Offering convenience – customers will often pay a little more for a product that they can have straightaway, or which saves them time.
Features of products–additional functionality in different versions of mobile apps can enable a mobile apps seller to charge higher prices; different mobile apps are designed to achieve the same effect (Adams, 2014).
In conclusion, a business organization that successfully adds value should find that it is able to operate profitably.
Task: 1.2 Recognize the opportunities to add value to a customer interaction
Added value is the increase in value that a business creates by undertaking the production process. It is quite easy to think of some examples of how a production process can add value (Egan, 2016). An inbound interaction (support call, product question) is a great opportunity to bring up new features or use cases that could improve the client’s experience.
There are different ways that add value to a customer interaction which are described as follows:
Share Success Stories
Take the time to find out what the organizations are doing right and share their success with the clients. Sometimes the marketing department of the organization will have already done the heavy lifting here and can take advantage of their customer story materials (Reilly, 2016). If not, do not let that hold back. Business organizations can still (without revealing confidential details, of course) share success stories with customers who could benefit from those ideas.
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Sign Clients Up for Training & Webinars
Many organizations offer regular webinars, and some even have formal training programs for clients. If organizations think a client could benefit from one of the webinars or training classes do not just send them the link: Offer to sign them up (Reilly, 2016). Even if the training class has a fee associated with it, the organization can generally have that waived if the organization can demonstrate that it will result in the client sticking around.
Leverage Marketing Resources
Chances are good that if the organizations have a marketing team they are publishing or aggregating content somewhere on the company’s website. Chances are also good that the majority of the clients have never taken the time to look at this content. While some material is going to be geared toward prospects, they can usually find blog posts, white papers, and articles that are relevant for current customers (Reilly, 2016). Take some time each week to look at what the marketing team is publishing, and share the good stuff with the clients.