The Business Dictionary says “The performance of actions that increase the worth of goods, services or even a business. Many business operators now focus on value creation both in the context of creating better value for customers purchasing its products and services, as well as for shareholders in the business who want to see their stake appreciate in value”.
Value has different connotations for different people but fundamentally the process of creating value remains the same regardless of your walk in life. To create value means you need to generate something that someone else wants…..just how valuable they find that something depends on you! Value isn’t fixed or tangible; it is perceived benefit. In other words, value is in the mind of the beholder. Just how strong that perception of value is, depends on you.
There are three possible ways to create value –
New items would most likely be the most difficult to achieve because you might need to think out of the box, find something you are not already marketing and pitch it to your client. This might mean you need to rethink the scope of what you offer your clients, a new item might mean a whole new scope added to your company but this would be twofold, creating value for your client as well as your company, I mean, you not going to add something that would be to the detriment of your own company now, would you? Change is the only constant in today’s business world. The ability to act quickly, that is, to adapt or respond, as customers make special requests, competitive requirements change, or the unexpected happens, keeps you on your toes, looking for additional ways to create value.
More items means expanding on what you already offer and the ability to deliver what you promise in that glowing brochure that you originally lured the client with. This can be done in a several ways, for example, you could have a feedback system from your clients asking them for ideas on how to improve and what they require to run their businesses more efficiently (this could also result in a new item as discussed earlier) or you could increase the number of items that you offer but not increase your subscription rate or you could give an incentive to subscribers that have been with you for a while, sort of a “loyalty” discount i.e. the longer you stay with us, the less you pay! Now isn’t that a nice way to create value….
Better items, I mean, who does not like to get more than their monies worth? In today’s world, you don’t have to stay with a company that is not performing for you, there are lots of choices out there. Creating better value with impact simply means you need to deliver a more powerful punch behind the value that you currently have. Pay attention to exactly what customers find compelling. Deliver your compelling offerings by finding new, more or better items to increase or create value in your business for your client.
“Price is what you pay, value is what you get” Warren Buffett