(GC01106)

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

Value-added services are additional benefits consumers can receive when they purchase a product or service. They are “add-ons” that can go a long way toward building goodwill if free or can significantly increase revenue if offered for a discounted price to customers. Added value is equivalent to 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. Adding value = the difference between the price of the finished product/service and the cost of the inputs involved in making it. 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. Value can be added to, a product, a service, a process, or an entire business. Value can be added by way of providing better or extra services in the form of after-sales services and better customer support. Value can also be added by improving a product in some way, or by including extras with the product.

Advantages of added value

Value-adding is the enhancement a company gives its product or service before offering the product to customers. Value-adding is used to describe instances where a firm takes a product that may be considered a homogeneous product, with few differences (if any) from that of a competitor, and provides potential customers with a feature or add-on that gives it a greater sense of value. 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.

This is through the process of servitization approach that is delivering a service component as an added value when providing products. Value-adding is the enhancement a company gives its product or service before offering the product to customers. Value-adding is used to describe instances where a firm takes a product that may be considered a homogeneous product, with few differences (if any) from that of a competitor, and provides potential customers with a feature or add-on that gives it a greater sense of value.

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. This is through the process of servitization approach that is delivering a service component as an added value when providing products.

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Unit 1 Business Culture and Responsibilities_Learning Outcome 2

Task 1.2: Recognize the opportunities to add value to a customer interaction

The first step in your customer experience strategy is to have a clear customer-focused vision that you can communicate with your organization. The easiest way to define this vision is to create a set of statements that act as guiding principles. The next step in building upon these customer experience principles is to bring to life the different types of customers who deal with your customer support teams. If your organization is going to really understand customer needs and wants, then they need to be able to connect and empathize with the situations that your customers face.

One way to do this is to create customer personas and give each persona a name and personality. Strategic planning is about focusing on the right things, keep your customers’ values at the forefront of your planning efforts. For many owners and executives, focus represents the biggest roadblock to corporate growth. The problem isn’t exactly a lack of focus but more the tendency to unintentionally focus on the wrong things. Your company is operating in its sweet spot when you’re focused on the following: What you’re good at doing, What you like doing, What the market values you for doing, etc…………………

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