In this chapter, authors Treacy and Wiersema discuss the different kinds of value customers want, offer guidance for companies trying to find the one they should excel in and provide lots of examples of market leading companies that have found success through knowing what their customers want and providing that value. In the beginning of the chapter, three kinds of value customers want are defined.
“For one category of customers, the most important value of a product is its performance. There’s a limit to how much they will pay, of course, but price is not the most important consideration.
For a second category of customers, the most important value is personalized service and advice. Once again, price is a consideration (no one wants to overpay), but it’s not the driving force behind their choice of product or service. They prefer to pay a little more to receive better attention.
For a third category of customers, the cost of a product is the primary consideration. Total cost begins with price but doesn’t end there. Customers don’t want to pay a very low price initially only to have the product cost them in the long run because of constant repairs. the total cost refers to how much the customers will pay for the entire time that they own the product. Thus, dependability is as much a component of low cost as is initial price.”
The authors go on to say that for a company to be successful, they cannot solely focus on one value and ignore the others. Also, companies that try to excel in all areas and be everything to everyone are rarely successful. So that got me thinking. I think there are lots of successful companies that do more than one of these well, they just know the right value to advertise. Knowing what your customers/prospects value and then letting them know that you fulfill that value is key. I think I might do some testing to see what value really resonates with my prospects.
How do you communicate to your prospects that your product or service fulfills the value they are looking for?