The concept of adding value is one of the most important things you can do when building a business and ultimately underlines becoming successful. I would go a step further and say this philosophy transcends business.
A business that is effective will always look and focus on how its product or service adds values to it's customers.
QUESTION: WHAT IS VALUE?
There are many definitions of value, but for the sake of argument the one we'll use today is:
'The regard that something is held to deserve; the importance, worth, or usefulness of something.'
QUESTION: HOW DO YOU ADD VALUE?
Put simply, you add value by solving problems. You add value by contributing. If your customer has a problem that your product and/or service can solve this is deemed valuable. So, this should be your focal point.
Unfortunately (for customers), a lot of businesses tend to focus inwardly. By this I mean they tend to become more preoccupied with the day-to-day business operations, instead of focussing on the results they want to achieve (i.e. the experience they would like their customers to have by buying the product and/or service on offer. This can sometimes cloud real world perspective as to how you are truly being of service to your customer base.
Generally speaking, this model is ineffective and not sustainable for your business in the long term. However, the fortunate thing for customers is businesses that do understand the concept of adding value will serve them well and have thriving businesses. Your customers are literally the oxygen that keep your business breathing so to speak. It is therefore in your best interest to put them at the heart and soul of everything you do.
Value is an ever-changing concept and is somewhat subjective. Within context, unfortunately (or fortunately depending on your perspective), this subjectivity is part of the business game. It should therefore, be your goal/job/mission to find out what problems and/or challenges your customers are facing. If you can determine what these are, you can help solve them and thus add value to them and their respective situations. If you do not do this your competitors will.
QUESTION: WHAT ABOUT PRICE?
One of the beautiful things about value is, it is not actually about price.
There is a plethora of content out there available that you can read online addressing the psychology of pricing and reasons why we buy. I encourage you to take time to check this information out. In a cheeky attempt to summarise some of the content out there:
By giving more value you can generally command a higher fee for your product/services.
The irony is, giving more in value is rare and this very rarity makes the concept of giving it more valuable. This gives carte blanche to command higher fees for your product/services. As a business owner you want to educate your potential customers to invest in you based on your value proposition not the price. To drive it home, prices should be based on value and value is based directly on contribution.
WHAT’S THE PURPOSE OF A BUSINESS?
I've heard it said that the purpose of a business is not to make a profit, but to create and keep a customer. Profit, therefore, becomes a by-product of doing these two things well.
Now if this perspective is accurate, you CREATE a customer by perceivably offering value from the outset, however, you KEEP customers by CONSISTENTLY adding value, contributing, and solving their problems. This shift in perspective has proven to keep customers coming back and you would deserve them doing so!
So………
Before you launch your business, or even contemplate starting a business it may be worth keeping these key questions in mind, in no order of importance:
1) What is my purpose for starting this business? - Answer this honestly to find your why.
2) What problem does my Product and/or service solve? - the answer to this question will give you your true value proposition.
3) How can I contribute to my potential customer? - you want to aim high and give as much value as possible.
I wish you the best with your business journey. Add value, Add Value and last but by no means least...Add Value.
You will reach the heights of success if you focus on this… And I hope that you do.
Catch you on the other side!