Customer value has been one of the marketing strategies that have played a great role in enhancing the field of marketing. Customer value is termed as the perspective in which a business recognises customers and how the customers see the worth of a business products and services. Customer value in marketing is proven to be among the important aspect in an organization for its merits overcome the demerits.
Customer value is termed as a significant factor in an organization’s aggressive policy and as the next source of aggressive benefit. Mounting a detailed perceptive of all customer collection permits an organization to come up with contributions that are modified to customer requirements and necessities. Companies which adopt enhanced value to customers can perhaps attain superior directorial concert and later shareholder cost. To give out the best value to customers, administrators need to wholly recognise how the formation of value is handled. (Presetiya mulya, 2007)
Although customer value is important in organizations, it cannot stand by its own. There are three step models, which enable an organization to have firm customer value incentive. One of this is finding out the measure of needs. This is a step put to ensure that the cost of every commodity appeals to customers. Because of the different needs, it is important to put a standard value that pleases every one. This will make everyone to feel that they are a part of the organization.
Putting the force to the customers is another step model for creating customer value. This practice ensures that the customers are given the first priority and enables them to understand that they are well recognised. This is a key secret used by major organizations to retain their customers. For any company willing to form a meaningful clientele, they should take this model seriously. Forming meaningful and reasonable customer worth is another way of creating customer value. The use of all these models in customer value has ensured that all anticipations are met at present and in the future. (Presetiya mulya, 2007)
Since customer value is important in every organization, there are tactics that one is supposed to use in order to win customers. This includes things like considering and efficiently responding to their wants. For a long time, organizations thought that convincing customers was the only way to attain great sales. Although this strategy works and also recognized in the modern world, there are also other methods for effective marketing of products. The excellent customer service starts with the first approach and taking time in knowing the customer, his ambition, his ideas, his aggravations and his objectives. After knowing all the likes of the customer, it is usually easy to handle, satisfy and attract him. (Baker Communications Inc, 2010)
Over the years, customer value has been hit by some barriers, which have made marketing in many organization face hard time. Lack of trust is one of the barriers; this has negatively affected the world of marketing. People have lost trust with each other and by so doing customers fear to invest much in organizations.
Denial is another barrier, which has also hit most organizations. Many customers feel that they are rejected and by so doing, they end up slowing the growth of an organization. Inertia is also a barrier hindering growth in organizations. Many customers feel disinterested with the services they are offered by organizations making it hard for the organization to enjoy in their firms. All these among others like communication and financial myopia have played a great role in retarding the growth of many firms. (Donald, 1992)
Many organizations have learnt the value of building up customer value. These are the effectual ways of enabling customers to attain their ambitions or needs. In this skill, many companies put up customer value through a number of dissimilar actions such as added value services and consumer approval dimension agendas. On the other hand, since these actions are carried out separately from the other, there is no assurance of reliable release of superior value that is required to hit the struggle. “Good examples of companies that have adopted consumer value in their ranks include Virgin Atlantic, Cisco, and Toyota”. (Billings, Berg, &De wart, 2008)
First, these companies do the best to ensure the progress of competitiveness of their present rate offer. Secondly, this enlarges the cost intention to the limits by varying the regulations of appointment. Finally, these companies make completely original and sustainable basis of cost to support their lengthy phrase to better position with their clientele.
According to Virgin Atlantic CEO Richard Branson, the company has “a strategy of using the credibility of its brand to challenge the dominant players in a range of industries where we believe the consumer is not getting value for the money” (Billings, Berg, &De wart, 2008). Toyota is another organization that has generated customer value within its ranks. Over the past years, the company has benefited from the rising technologies that generated new foundation of cost for the consumers and businesses alike.
Toyota has a strategy that seeks to manufacture cars fitting everyone’s taste and preference. This can be seen in the manufacture of the Prius, which is the first electric car in the automotive industry. This has redefined the value of customers in the company. The Prius is a car that even appeals to environmentalists since it is ozone friendly. This clear customer value has seen the relationship between Toyota and its customers increasing over the years. This has also brought about a tremendous growth to the company in the face of a rapidly declining market. (Billings, Berg, &De wart, 2008)
Finally, Cisco is another organization that has adopted the concept of customer value. Over the years, Cisco has had a strategy for ensuring that its customers are valued. The company has come up with numerous design products that are meant to appeal to individual customers. Cisco now focuses on new products that are meant to appeal to people across the age divide. This strategy has borne fruit making Cisco one of the most profitable companies in the UK. (Billings, Berg, &De wart, 2008)
Customer value is something that is widely regarded in the marketing world for it enhances the growth of organizations. The success following it has proven that customer value is among strategies that lead to the growing of an organization. Customer value has made the organizations to broaden their thoughts and by so doing they have fully established themselves. Customer value has also brought about competition which has ensured that customers get the quality products. Finally, customers should adhere to customer value to enhance growth in their organizations.
Baker Communications Inc. (2010). Customer Service Skills. Web.
Billings, D, Berg, R, &De wart, D. (2008).Building customer value. Web.
Debonis, N, Balinski, E, & Allen, P. (n.d.). Value Based marketing-Creating customer value. Web.
Donald, J. (1992). In quest of the grail: breaking the barriers to customer valuation. Web.
Presetiya mulya. (2007). Customer value: Definitions, Importance, and Strategy. Web.