How do companies create incremental profits and attract new customers? The answer is simple; provide more value than your competitors.
Let’s take a look at one definition of value:
Service + Quality + Reputation
You can increase value by decreasing your price and your customers will feel good for the moment, which is until someone else comes in and offers an even lower price. I do not recommend this strategy, unless you want to have a short-term win and jeopardize your long term brand and success.
Do you know how your customers feel about the value you offer to them? When was the last time you asked your customers for their honest feedback? Or do you assume customers that stay with you are happy and you are providing good value? When you lost a customers over price, did you dismiss the lost as we didn’t want that customers anyway?
Most customers will say they receive fair value because you’ve provided them the products/services at the price agreed upon. Returning calls, offering a reliable product, delivering on due dates and having competent staff are all benchmarks in any industry. If you don’t do these, you are distinguishing yourself in a negative way.
To be noted as a provider with exceptional value and to get your customers to recommend you to others will require you to do those unexpected things. You can distinguish yourself in a positive manner from your competitors by providing proactive added value. Consider delivering special touches, such things as:
- Tips and resources: Send thought leadership content to provide insights on how your customers can improve their business
- Recognize milestones: Send both personal (birthday, anniversary and child celebrations) and professional achievements (promotions, company news and business relationship anniversaries). Better yet, call.
- Appreciate the business: Send a thank you card and token of appreciation (e.g. coffee gift card, cookie basket, etc.) when completing a project or order or thanking the client for their efforts in the project. You are not the only one working hard on projects, acknowledge the partnership and your customer’s efforts. Make them feel valued and recognize they have a choice of who they work with.
- Referrals: Refer business to your customers. This will almost always come back to create loyalty and referrals back to you.
Spending a few extra dollars, and time, on exceeding expectations will drive new customers and positively impact your long term profits.