Now more than ever, it is critical for companies to hone in on how they create value for their customers. Doing so will help them sharpen their message, leverage their advantages, shore up their weaknesses, and discover new opportunities.
In these challenging times, however, too many owners and executives are overwhelmed by the day-to-day tribulations of their businesses to think strategically about what sets them apart. Let me suggest a straight-forward, four-part rubric to achieve an understanding of how a company creates value.
First, consider the functional ways your product or service helps your customer. Does it save time or reduce effort? Or does it simplify or integrate things? Does it help make money? Or reduce hassles? These and other functional benefits, such as reducing risk or delivering quality, are the fundamental building blocks of value. Successful companies are likely to have a foundation built of more than one of these blocks.
Next, consider the emotional value you deliver. How do you make your customer feel? These may include things such as reducing anxiety, encouraging health or wellness, or providing status.
Third, on a higher level, consider whether your company provides something that is even more abstract or life-changing. Do you provide hope or motivation? Or a sense of affiliation or belonging?
Finally, connect the dots. Identify the how the foundational, functional benefits also deliver emotional and even life-altering value.
We can help you identify exactly how your company provides value and how to translate that understanding into a clear, step-by-step approach that will sustain and grow your business. To get started on a strategy that will propel you forward reach out today.
Marc Alterman is the principal of MA33 Strategies, LLC, a consultancy dedicated to providing strategic planning and general business advice to entrepreneurs and executives. For help with your company’s overall strategic direction or other management challenges, contact Marc Alterman at [email protected].
