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How can you control a customer's perceived value? You must take into account the emotional connection customers receive during each contact point. Having a consistently positive emotional connection with customers will create a loyal relationship. Every decision is based on the perception of the decision maker. Remember the golden rule -- Treat your customers the same way you want to be treated.

Wishing you continuous success,
 

David Hildreth

BOOST Associates

A Customer's Perceived Value

valuePerceived value as defined by customers creates loyal customer relationships, and customer loyalty is the best predictor of your future strength and growth potential. The value you provide to your customers is always compared to the value your competitors provide: therefore, value is your customers' perception relative to similar products or services in the marketplace -- your competitors.

Perceived value occurs at the intersection of what customers want and what they get from you versus what they could get from your competition. You can only sustain customer loyalty by continually meeting your customers' product/service qualifications, specifications, or expectations. You should strive to meet customers' needs in the order they deem important while maintaining a favorable comparison between you and your competition. In your marketplace, your competitors are the alternative suppliers your customers use to form their comparative value perceptions.   

 

How would your customer define perceived value?

For example if your customers expect your product to perform error free, to be delivered on time, to be supported by timely and personal technical support, and to be properly billed at a fair price, you must be good in all categories to get an "A," and you must be at least as good as your competitors. If you deliver a product that meets all of their design specifications but are unable to provide personal technical support, you failed in meeting an important criteria; therefore, the perceived value will decrease. For every mark you miss, the value as defined by your customers decreases and you slowly lose the ability to develop a loyal customer relationship. To create and sustain loyal customers it is necessary to consider every contact with each customer as an opportunity for you to provide value -- every time. Every service point is critical and every service point has a level of expectation from the customer that must be understood and managed. We call these interactions Points of Connection.

Every point of connection gives your organization the opportunity to emotionally connect with your customers. Your customers will judge your value and their emotional tie at every point. Developing and implementing a strategy of creating a consistent emotional connection with your customer creates value, which creates loyal customer relationships.

We know that loyal customers will always return to purchase your product or service, which creates a long-term stream of revenue. Another advantage of loyal customers is that they will consistently boast about your product or service creating the most effective and least expensive form of advertising for your organization. There are additional advantages of developing a loyal customer base such as their willingness to pay more for your product or service, and they are also more forgiving when your organization makes a mistake. Why? As loyal customers, they trust your organization and have faith that you are fair.

Making the strategic decision to create a loyal customer base is one of the most important commitments you can make to the success of your organization. Your individual contribution is also a large part of that success.

 

What is your customer's perceived value?
What To ____?
  

Every day we are bombarded by decisions ... what to do, what to eat, what to wear, what to read, what to watch or listen to, what to buy, what to say ... the decisions are never ending. The never-ending process of making decisions continues throughout your workday. Every time an employee asks you a question like ... "Can I leave early to go to my son's lacrosse game?" or "Mary just called in sick and we need her part of the project today, what do we do?" ... you are making decisions that impact your team or department's results. Fortunately, most decisions require very little conscious thought. In fact, we actually made many of the decisions a long time ago, and we're simply executing them now out of unconscious habit. For example, we spend little or no time deliberating what driving route we take to work, what errands need to be accomplished over the weekend, or what clothes we throw on after getting home from work.

 

DECISION MAKING The emotional intensity of decisions depends upon the perspective of the decision maker. To a corporate executive, a decision that involves millions of dollars can seem routine, while the president of a local service club might agonize over luncheon arrangements for 15 members. A married couple might spend considerable time and energy deciding what color to paint their living room, while a marketing executive might design packaging for an entire product line in a very short time. Your attitudes and habits influence your actions and thoughts. You can improve your decision making skills by becoming aware of the existing attitudes and habits that have shaped your decisions in the past.

Take a few moments to list some of the important decisions you made in the past five years. Evaluate the quality of those decisions.

Did they produce the results you wanted? Are there any decisions you would change? Next examine your decision making style. Did you tend to make the decisions impulsively, or did you take time to examine all of the facts? Did you involve others, or did you decide alone? Did you make the decision in a timely manner, or did you procrastinate? Did your decisions align with your goals, or were you swayed by external influences and other people's opinions? Were there any decisions on your list that you made against your better judgment? Perhaps you had a hunch about what you should do, but you disregarded it. How did those decisions turn out? Write down your observations. Can you identify the habits and attitudes that either helped or hindered your decision making in the past?

Over the years your personal experiences and your daily application of formal knowledge have given you a sixth sense for what will and will not work in given situations. Intuition can serve you well in decision making. Research has revealed decisions based on instinct are frequently more accurate than those based strictly on factual analysis. Your best decisions will draw upon both the logical and the emotional facets of your personality. Listen to your inner voice and be sure your decisions pass the test of plain common sense.

Passing the common sense test is an important component of making a sound decision. However, for more complex decisions there is a proven decision making process which includes six key steps. I will share more specifics on the decision making process in a future newsletter!

 

How are your decisions impacting your life?
I hope you have enjoyed what you've read! Please feel free to with a colleague or friend. We value your feedback, so please send any suggestions or comments to [email protected]. See you next month with special invitations to events, motivational quotes, and more useful articles and tips to help you on your path to success!

 

Sincerely,

 

David Hildreth

 

BOOST Associates
In This Issue
A Customer's Perceived Value
What To ____?
David Hildreth
David Hildreth

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"Using the power of decision gives you the capacity to get past any excuse to change any and every part of your life in an instant."
 

- Anthony Robbins