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 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 organizations give a customer a free belt with the purchase of slacks, that’s a straight freebie (Ashe-Edmunds, 2018). If organizations 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.
In a global marketplace, where goods flow freely across borders, manufacturing companies are continually striving to sharpen their competitive advantage. Faced with challengers from developing countries with significantly lower production costs, along with evolving customer needs, a number of product-focused businesses are moving into value-added services (Morrison, 2017). This “servitization” is essentially the move from organizations selling products to selling instead of the solutions or outcomes that the products provide.
The concept of value added is very important in marketing because it acts as an incentive for customers to purchase a product or subscribe to a service.
A simple example when the value is added to a product is when a sampler product is given for free when another related product is bought, whether at a regular or discounted price (i.e. free small bottle of mouthwash for buying a jumbo-sized toothpaste).
Another example when the value is added to a product is when an extra quality process, such as undergoing ISO certification, is done to determine superior product quality. In cases like these, the products that pass the certification get to put the ISO logo on the packaging to show the customers that the product is true of superior quality (Business Pundit, 2017). Obviously, customers that are looking for quality over affordability will choose an ISO-certified product over an ordinary one.
Value-added services are a common marketing tool. In this context, value-added refers to all the services a company offers that relate to its primary service. A good example would be the additional service phone providers offer.
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Task 1.2: Recognize the opportunities to add value to a customer interaction
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 organizations give a customer a free belt with the purchase of slacks, that’s a straight freebie (Ashe-Edmunds, 2018).
Implement marketing models into business strategy
As organizations are searching for ways to create added value, the use of popular marketing models can help organization’s strategy to 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 the 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, organizations 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. Building a customer experience also allows organizations to develop relationships with the customers so organizations can connect on levels that go past simply getting the sale…..