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
The term “added value” means just what it implies: When a customer purchases a product or service from Morrisons, he gets an extra benefit. Added value is not the same as offering a free product or a discount because the customer gets something different than what she’s buying or something that she can’t buy. For example, if Morrisons give a customer a free belt with the purchase of slacks, that’s a straight freebie. If Morrisons offer free alterations, that’s added value. If a personal trainer offers customers a free subscription to his newsletter, that’s an added benefit the customer might be unable to get elsewhere and for which the customer pays nothing extra. A common example of added-value selling is a software operating system that includes a free Internet browser, word processing software, and spreadsheet programs (Kaplan, 2016).
In the digital age, when consumers can have access to any product they want and have it delivered in record time, Morrisons are struggling to find a competitive advantage. Morrisons are constantly challenged to find a way to add value to justify their pricing to a more discerning market (Thomas, 2015). Morrisons are learning that consumers are less focused on the product, and more focused on what the product will do for them. Finding out what the customer truly values is critical to how Morrisons produces, packages, markets, and delivers its products.
In order to apply the correct value to the correct customer at the correct time, Morrisons need to have a thorough understanding of its customers and a flexible approach to interacting with them. The ability to do that relies on having accurate data and having that data compiled so that Morrisons have a complete and robust view of each customer, plus the necessary tools and systems in place to implement its messages (Kaplan, 2016).
Morrisons need to know its customers in order to add the relevant definition of value to improve their customer journey and experience. Morrisons should always look to add value because if Morrisons is not, all Morrisons are really doing is talking about itself.
Even its most loyal and valuable customer doesn’t want to hear Morrisons talking about itself. They want to hear about themselves and all the great stuff they can have, do, or get involved in. By definition, a business that is adding substantial value must also be operating profitably. Finding ways to add value is a really important activity for a start-up or small business (Kaplan, 2016). Quite simply, it can make the difference between survival and failure; between profit and loss.
Our Recommended Resources:
The key benefits to a business of adding value include:
– Charging a higher price
– Creating a point of difference from the competition
– Protecting from competitors trying to steal customers by charging lower prices
– Focusing a business more closely on its target market segment
Task 1.2: Recognize the opportunities to add value to a customer interaction
Customers are expecting more from Morrisons than ever before. They want to know Morrisons are willing to do more to keep their business. According to a survey by the National Business Research Institute, when a product is the best among similar offerings, it is important to separate it from the rest with marketing and good customer service.
- Become an authority
When its consumer feels that Morrisons are the authority in its field, then its value increases tenfold. Morrisons, therefore, have to do things that make this come to life. What’s more, they are all there for free, so people can hop on and have a look around, and get all they need in one place. Being an authority gives its consumer a huge sense of security (Jensen, 2016).
- Let them feel that Morrisons understand them
Morrisons really need to make a connection with its consumer. If Morrisons go about this in the right way, they will tell Morrisons everything, and then Morrisons have to try and understand it. Once Morrisons understand, and they start to feel that Morrisons understand as well (because its actions replicate and align with their feedback), its value is boosted massively.
- Listen to their feedback
Listening is perhaps one of the greatest tools Morrisons have to increase its value with its consumers. Most brands and businesses just do not listen. Please don’t be that entrepreneur that gets so excited and so engrossed in their tunnel-vision that all Morrisons do is talk. Throughout its entrepreneurial life, if Morrisons listen more than Morrison’s talk, then there is no doubt that Morrisons will be able to figure out how to create the most value in what Morrisons are doing…………..