You understand the value your products and / or services bring to your customers

Understanding your company’s contribution to your customers’ success is a powerful concept on which to build future business strategies. The concept of adding value to your customers complements your understanding of why they buy your products. Companies able to offer the most value to their customers are in a stronger position for winning new business and establishing long term mutually beneficial supplier partnerships 
Key Issues
·         Adding value is a catalyst for attracting more customers
·         Adding customer value should be acknowledged as a key business driver
·         Value can be added by a number of factors e.g.
o      Providing technology for enhancing product features
o      Services to complement a company’s core competencies
o      Share the risk and revenues on programmes
o      Cost savings, in money, time, energy and quality
o      Building a brand with a reputation for quality and reliability
·         Customers also perceive value in products, services, the way they are treated, the ease of doing business, and the prestige your company contributes
·         Value adding strategies for your business must be defined and, whenever possible, quantified
·         All employees must understand what your customers consider as the value embodied in the products and services your company offers
·         Time must also be allocated for understanding your customer’s customers and what attributes they value and expect from your products
·         Managers must avoid building customer expectation, then failing to deliver any tangible customer benefits
·         Implemented correctly, adding value allows price negotiations to be extended to include other factors that customers may be prepared to pay for
·         Higher levels of customer satisfaction lead to more secure customer supplier partnerships and the confidence needed to jointly remove unnecessary costs
Factors for Success    
Factors to  Avoid
1.     Investing in the resources needed to deliver added value to your customers
2.     Training employees in how to establish value and what customers regard as delivering value
1.     Introducing this as ‘yet another management initiative ‘
2.     Failing to invest in training
3.     Failing to give employees time to fully understand what is expected by your customers
Who does this apply to?
Senior managers, people who deal with customers, everyone in the organisation 
Realisable Benefits
Increased business with new and existing customers. Higher margins, improved service levels and superior business performance.  Competent companies will secure more orders and retain existing customers
Key buying factorsKey buying factors

Key buying factors

Understanding valueUnderstanding value

Understanding value

Measuring customer satisfactionMeasuring customer satisfaction

Measuring customer satisfaction

Improving customer satisfactionImproving customer satisfaction

Improving customer satisfaction

Quality standardsQuality standards

Quality standards

Delivering quality standardsDelivering quality standards

Delivering quality standards

Continuous improvementContinuous improvement

Continuous improvement

Deliveries (on time and in full)Deliveries (on time and in full)

Deliveries (on time and in full)