Why is Black Friday so popular? Mostly because of the price to value ratio, and the idea of getting the deal of the year without compromising on quality.
In business, we have come to terms with the idea of paying for quality. It is an acknowledgment of, among other things, the time and skill it takes to create valuable items or provide valuable services.
However, we can use the price to value ratio to improve our appeal to customers. How can we create more value for our customers and not just on Black Friday?
A business’ efforts to create value can be measured through a customer’s understanding and appreciation of that value.
So how do we go about honing our price to value ratios?
1. Talk to your customers about your product or service and watch how they react
Believe it or not, the best way to find out what your customers think of the value of your services is to ask them! Sometimes, a customer can reveal a hidden value of a product or service that you and your team have never considered or thought of. You can leverage this in your marketing materials, pitches and more. On the flip side, communication between you and your clients may reveal areas of improvement for you to be able to deliver more value.
2. Consider Segmentation.
Another way to deliver better value to your customers is to tailor offers, additional value, and specs based on different segments of your target market. Divide your customers into different segments and consider what they may buy and use. Different customers may derive different value from your products or services at different stages, even if the product is the same. Use this data to target your communication appropriately rather than view your audience as one mass customer. Chances are if you do this and your competition doesn’t you will dominate your market every time.
3. Consider Consulting your most loyal customers before making changes
The most valuable brands build “raving fans” who are customers that are such loyal advocates that they literally take offence at even the suggestion that they use the competition. When customers perceive themselves as more than just a customer and are part of the decision-making chain, you create additional value. Therefore, a good tactic is to identify your most loyal customers and reach out to seek their opinion on new products or services before they are launched. Not only do you gain great insights into whether your new ideas are on track, but your customers feels like a part of the inner circle and rewarded for their loyalty.
Of course there is a fine line between giving your customers value for money and still being profitable. If you’d like to explore how you can create lasting value for customers in your business and keep winning – reach out to me and let’s have a chat!
Happy Black Friday!