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-adding to products increases the value of the customers. Value-added services by the marketers promote their business stability and sustainability in the local or international marketplace. The program of value-added service to products either increases the prices of the products or develops the grade of the products. Adding value to products is helpful for the customers. This program also refers to the management of customer relationships between employers and employees in the workplace.
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. Don’t know where to start? Here are five ways to create added value that can be easily implemented into your business plan today:
Step 1: Understand what drives value for your customers
Talk to them, survey them, and watch their actions and reactions. In short, capture data to understand what is important to your customers and what opportunities you have to help them.
Step 2: Understand your value proposition
The value customers receive is equal to the benefits of a product or service minus its costs. What value does your product or service create for them? What does it cost them–in terms of price plus any ancillary costs of ownership or usage (e.g., how much of their time do they have to devote to buying or using your product or service?)
Step 3: Identify the customers and segments where are you can create more value relative to competitors
Different customers will have varying perceptions of your value relative to your competitors, based on geographic proximity, for example, or a product attribute that one segment may find particularly attractive.
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Step 4: Create a win-win price
Set a price that makes it clear that customers are receiving value but also maximizes your “take.” Satisfied customers that perceive a lot of value in your offering are usually willing to pay more, while unsatisfied customers will leave, even at a low price. Using “cost-plus” pricing (i.e., pricing at some fixed multiple of product costs) often results in giving away margin unnecessarily to some customers while losing incremental profits from others.
Step 5: Focus investments on your most valuable customers
Disproportionately allocate your sales force, marketing dollars, and R&D investments toward the customers and segments that you can best serve and will provide the greatest value in return. Also, allocate your growth capital toward new products and solutions that serve your best customers or can attract more customers that are similar to your best customers.
Task 1.2: Recognize the opportunities to add value to a customer interaction
Adding value for either customer’s perspectives or product grade increasing obviously promote products of the business company. There are numerous opportunities to have a value-added customer interaction which helps the marketer to evaluate the customers according to their choice and categories. This program is very scientific for the marketer to adopt proper measures in the value-added services.
Trust: Trust is commonly viewed as the primary and fundamental requirement for developing and improving relationships (Medlin et al., 2005; Richard et al., 2005). Trust can refer to an individual person or an entire company. The trust between the company and customers has recently caught much attention from a management and research perspective (Kumra & Mittal, 2004).
In the relational exchange of service industries, trust plays a critical role in managing the service companies (Gummesson, 1994). From a customer perspective, trust becomes crucial in many relational exchange situations and reduces the perceived risk of the service outcome (Laroche et al., 2004). In general, customers trust the companies which employ well-trained employees and are capable of satisfying his/her needs and expectations (Kantsperger & Kunz, 2010). It can be said that a customer who has trust in his/her service provider is more likely to stay in and be committed to the relationship (Kantsperger & Kunz, 2010).
Commitment: Commitment is seen as the second most common variable to create, build, and maintain relationships by many researchers (Geyskens et al., 1998). It implies that the party which makes the committee believes the relationship is worth keeping and guarantees to continuously protect it forever. Even if something goes wrong and credibility can be weakened in some cases, it will not harm the loyalty of the customer. In order to understand, investigate, and predict ongoing relationship performance better, it should understand relationship commitment totally (Gounaris, 2005)……………