Unit 01 Business Culture and Responsibilities (GC01029)

Task 1.1: You are required to produce a report explaining what ‘added value’ means in terms of customer service.

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. The term “added value” means just what it implies: When a customer purchases a product or service from you, 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 you give a customer a free belt with the purchase of slacks, that’s a straight freebie. If you 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.

One of the keys to maximizing repeat sales is making sure your customers get all of the benefits from your product or service when they use it. In addition to providing printed instructions and information on your website, offer on-site training for your large customers’ employees, or provide seminars or workshops that multiple customers can attend. Another possibility is to offer web-based seminars or video conferences. Depending on how captive your customer base is, you might be able to charge for training, but the charge should be perceived as being at a discount for it to function effectively as a value-added service. Once customers buy your product or service, it doesn’t mean you’re done with them.

The more contact they have with you, the more likely they are to buy again. Offer a toll-free number, customer service email address, or chat function on your website, or even provide a dedicated customer service representative to your customers to make sure they can quickly reach you when they need help. Require your salespeople to contact your customers on a regular basis to see if they need help advice or suggestions. Tell them not to sell during these conversations, but to demonstrate that they are true partners providing excellent service and support after the sale.

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Business Culture and Responsibilities

Unit 1 Business culture and responsibilities Assignment LO2

Task 1.2: You should recognize the opportunities to add value to customer interaction.

Every business needs to “acquire, retain and grow” relationships with its target consumer, according to All Business. This need is irrelevant to the type of product or service your company may offer. Customer value strategies present products and services in a way that consumers realize they are immediately saving money or will be saving money in the long-term by working with your company.

Sustainable Differentiations to Competitors

A product or service that everyone wants is a great start but if you have a lot of competition, you need to develop a strategy that shows customers how you are different and better. You may increase the number of customer service representatives to reduce wait times. You may offer more products than competitors or create a partnership that adds value. For example, a book store with a coffee shop allows consumers to stop and relax, even socialize while shopping. Regardless of how you differentiate yourself, you need to crunch the numbers to ensure it is sustainable in the long run. Otherwise, the value you have given customers will be revoked, causing more harm than good.

Product Value

Many consumers are notorious price-shoppers. This is where price guarantees, where you will match or beat any competitor’s price for the same product, have become some popular. The timeless strategy of offering the same products or services for less gives consumers the products they want and gives them a reason to get it from you. When implementing this strategy, look at your overall revenues and make sure you are not cutting into your profit margin excessively. Once again, making sure you can sustain the lower prices is essential to staying in business………..

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