How to Add VALUE to Your Product or Service
[Music] hey guys welcome back to the business mindset or if this is your first time glad to have you here I'm Travis Stewart last week I talked with a group of business professionals about their struggles with making sales an overwhelming show of hands indicated their biggest struggle was about the price of their product or service which my instant response is you're not adding enough value for your customers today I want to talk about how to add more value to your product or service adding value is something that we can apply to pretty much everything from a job interview or when you're trying to convince a friend which restaurant they should eat at it doesn't always have to be about price so what is value in terms of business well values that difference between the price you charge and the benefits the customer perceives they'll get let's imagine we have a scale of perception on one end we have the price of the product and on the other end we have the perceived value of the product if the price is the main focus for the customer unlikely means that the product is valued as a commodity like milk although most people do have a brand that they tend to buy if the price of that brand of milk increases without adding any value the customer will more likely choose another brand of milk that is cheaper so what we need to do is to shift the customers perception from focusing on the price to focusing on the added value of the product which is the value proposition the value proposition is that anticipated value the customer will receive if they do not use your product or service so basically the customer does this toss benefit analysis in their head on the outcomes of using or not using your product or service if you focus on the benefits that add value for the customer the price becomes less important otherwise the only thing you can talk about is a price and I think a great example of the perceived shift from price to values with Apple products specifically the MacBook so despite PCs being substantially lower priced or having equal if not better hardware specs than MacBooks millions of customers still buy MacBooks Apple has done an incredible job focusing on the value of their products and services offer customers how do they do this well by tapping into the emotions of the customers that paints a picture in their mind about how using their products will make their lives better and once the customer is in the Apple product ecosystem the user experience makes the cus loyal because they do in fact solve many of the problems the users worry about okay I think it's clear that we need to focus on adding value for our customers to move their perception of our product from being a price sensitive commodity to a value added problem solver but how do we do that well first we need to understand people don't buy a product they buy the results the product will give them or the problem that will solve therefore depending on your product or service you can add value by saving their time giving them more attention improving their status giving them peace of mind improving their lifestyle reducing their effort making them more comfortable I think you get the point by listening on all the benefits of your product or service and how it will enhance their lives you'll be able to move from the focus on price to other values that the customer will receive also remember we as consumers buy products because of the emotional benefit it's why the beauty enhancement industry is so massive we want to improve our lifestyles so we buy products that will make us look younger have smoother skin or remove wrinkles I should probably look into that the second point you need to consider is that customers are also buying you if you're face to face with a customer they're perceiving the value that you add to their buying decision if you're not empathetic or show genuine care for the customer they will likely focus more in the price or not buy from you at all you're representing the company as a whole you need to constantly be thinking about how the customer is perceiving your interaction because it will affect every employee in your business this also applies to the company as a whole the custom role judge of brand on his purpose and the perception from other customer experiences that read about on online reviews or in the media therefore it's more important than ever before to make sure the actions of the company are in line with the vision and core values I really like how author simon Sinek in his book start with why stated people don't buy what you do they buy why you do it and what you do simply proves what you believe if your employees believe in the purpose they will be able to express that purpose enthusiastically to customers I think we've all experienced both ends of the spectrum as consumers you get excited about a purchase when you can see how much the staff serving you believes in their product on the other hand we have also experienced the staff who really don't care that much to them it's just a job which leads me to another quote from Simon if the leaders of an organ is can't clearly articulate why the organization exists in terms beyond its product or service then how do they expect the employees to know why to come to work as leaders we have to constantly be saying the why to everyone as a reminder of our purpose to add value throughout the organization and thus passing that value on to consumers I hope this videos made you think about how value is created and communicated with customers in your business I would love to hear from you guys in the comments section on your thoughts when it comes to adding value if you like this video let me know by hitting that like button it helps me know if this content is helpful or not also subscribed if you haven't already that's all for today see you in the next video you
